978-1305502215 Chapter 12 Part 1

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CHAPTER 12

MOTIVATING EMPLOYEES

CHAPTER OUTLINE

New Manager Self-Test: What Motivates You?

I. Individual Needs and Motivation

II. Intrinsic and Extrinsic Rewards

III. Content Perspectives on Motivation

A. The Hierarchy of Needs

B. ERG Theory

C. A Two-Factor Approach to Motivation

D. Acquired Needs

New Manager Self-Test: Need for Achievement, Affiliation, and Power

IV. Process Perspectives on Motivation

A. Goal Setting

B. Equity Theory

C. Expectancy Theory

V. Reinforcement Perspective on Motivation

A. Direct Reinforcement

B. Social Learning Theory

VI. Job Design for Motivation

A. Job Enrichment

B. Job Characteristics Model

VII. Innovative Ideas for Motivating

A. Empowering People to Meet Higher Needs

B. Giving Meaning to Work Through Engagement

C. The Making Progress Principle

ANNOTATED LEARNING OUTCOMES

After studying this chapter, students should be able to:

1. Define motivation and explain the difference between intrinsic and extrinsic rewards.

Motivation refers to forces either within or external to a person that arouse enthusiasm, and

2. Identify and describe content theories of motivation based on employee needs.

Content theories of motivation emphasize the needs that motivate people. These needs translate

into an internal drive that motivates an individual’s specific behaviors in an attempt to fulfill the

needs. The organization’s reward system can be designed to meet employees’ needs and

3. Identify and explain process theories of motivation.

Process theories of motivation explain how people select behavioral actions to meet their needs

relationship among the individual’s effort, the individual’s performance, and the desirability of

outcomes associated with high performance.

4. Describe the reinforcement perspective and social learning theory and how they can be used

to motivate employees.

Reinforcement theory looks at the relationship between behavior and its consequences. It focuses

on changing or modifying employees’ on-the-job behavior through the appropriate use of

5. Discuss major approaches to job design and how job design influences motivation.

A job in an organization is a unit of work that a single employee is responsible for performing.

Jobs are an important consideration for motivation because performing their components may

the personal and work outcomes of high work motivation, high work performance, high

satisfaction, and low absenteeism and turnover. People have different needs for growth and

development, employee growth-need strength. The job characteristic model is especially

effective when a person has a high need for growth and development, including the desire for

personal challenge, achievement, and challenging work.

6. Explain how empowerment heightens employee motivation.

Organizations have adopted new programs that apply motivational theory to improve employees’

satisfaction and performance. The newest trend in motivation is empowerment, which is power

7. Identify three elements of employee engagement and describe some ways that managers can

create a work environment that promotes engagement.

Employee engagement means that people enjoy their jobs and are satisfied with their work

8. Describe how managers give people a sense of making progress toward meaningful goals to

build a thriving workforce and create a high-performing organization.

The making progress principle is the idea that the single most important factor that can boost

LECTURE OUTLINE

NEW MANAGER SELF-TEST: WHAT MOTIVATES YOU?

Motivating Employees •

Managers and organizations often use extrinsic motivation techniques, but intrinsic motivation is

more satisfying for most people. This exercise helps students determine whether they prefer

intrinsic or extrinsic rewards in their careers.

I. INDIVIDUAL NEEDS AND MOTIVATION Exhibit 12.1

A. Motivation refers to the forces either within or external to a person that arouse

enthusiasm and persistence to pursue a certain course of action. Employee motivation

affects productivity, and part of a manager’s job is to channel motivation toward

accomplishment of organizational goals. The study of motivation helps understand what

prompts people to initiate action, what influences their choice of action, and why they

persist in that action over time.

B. People have needs—such as for recognition, achievement, or monetary gain—that

translates into an internal tension that motivates specific behaviors with which to fulfill

various needs. Needs motivate specific behavior designed to fulfill those needs.

Feedback tells people whether they were successful in fulfilling their needs. If so, they

feel rewarded by their success.

II. INTRINSIC AND EXTRINSIC REWARDS Exhibit 12.2

A. Managers who understand the motives that compel people to initiate, alter, or continue a

desired behavior are more successful as motivators.

B. Exhibit 12.2 in the text illustrates four categories of motives—intrinsic and extrinsic

rewards.

a. Intrinsic rewards are the satisfactions a person receives in the process of

performing a particular action.

b. Extrinsic rewards are given by another person, typically a manager, and include

promotions, praise, and pay increases.

c. The importance of motivation is that it can lead to behaviors that reflect high

performance and profits within organizations. Managers have to find the right

combination of motivational techniques and rewards to keep workers satisfied and

productive in a variety of organizational situations.

Discussion Question #1: Why do you think making progress ranks as the most important factor

contributing to motivation according to recent studies? How can managers provide a sense of

progress for employees working on long-range projects that might not show results for months

or even years?

NOTES________________________________________________________________________

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Motivating Employees •

III. CONTENT PERSPECTIVES ON MOTIVATION Exhibit 12.3

Content theories emphasize the needs that motivate people; people have a variety of needs at

any point in time. These needs translate into an internal drive that motivates specific behaviors

in an attempt to satisfy the needs. To the extent that managers understand employees’ needs,

they can design reward systems that meet them and direct employees’ energies and priorities

toward attaining organizational goals.

A. The Hierarchy of Needs

1. Abraham Maslow’s hierarchy of needs theory proposes that humans are motivated

by multiple needs, existing in a hierarchical order. He identified five general types of

motivating needs in order of ascendance:

a. Physiological needs. The most basic human physical needs including food,

water, and oxygen. In the organizational setting, these needs include adequate

heat, air, and base salary to ensure survival.

b. Safety needs. These are the needs for a safe and secure physical and emotional

environment, free from threats of violence. In an organizational workplace,

safety needs are for safe jobs, fringe benefits, and job security.

c. Belongingness needs. These needs are the desire to be accepted by one’s peers,

have friends, be part of a group, and be loved. On the job, this translates into a

desire for good relationships with co-workers, participation in a work group, and

a positive relationship with supervisors.

d. Esteem needs. Esteem needs relate to the desire for a positive self-image and the

need to receive attention, recognition, and appreciation from others. These needs

are reflected in organizations as a desire for recognition, increased responsibility,

high status, and credit for contributions to the organization.

e. Self-actualization needs. This is the highest need category and represents the

need for self-fulfillment—developing one’s full potential, increasing one’s

competence, and becoming a better person. These needs can be met in an

organizational setting by providing opportunities to grow, encouraging creativity,

and providing training for challenging assignments and advancement.

2. The lower-order needs take priority in that they must be satisfied before higher-order

needs are activated. The needs are satisfied in sequence; once a need is satisfied, it

declines in importance and the next higher need is activated. If a lower-level need

ceases to be satisfied, however, it will re-emerge and take precedence over higher

order needs until it is once again satisfied.

NOTES________________________________________________________________________

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Motivating Employees •

B. ERG Theory

1. ERG theory was developed by Clayton Alderfer and is a modification of Maslow’s

theory in an effort to simplify it and respond to criticisms of its lack of empirical

verification. ERG theory identified three categories of needs.

a. Existence needs. These are the needs for physical well-being.

b. Relatedness needs. These pertain to the need for satisfactory relationships with

others.

c. Growth needs. These focus on the development of human potential and the

desire for personal growth and increased competence.

2. The ERG model and Maslow’s needs hierarchy are similar as both are hierarchical

and presume individuals move up the hierarchy one need at a time. However, the

ERG model suggests reduced number of need categories and the movement up the

hierarchy as more complex, reflecting a frustration-regression principle. This

suggests that failure to meet a higher-order need may trigger regression to an already

fulfilled lower-order need. For example, a worker who cannot fulfill a need for

personal growth may revert to a lower-order social need and redirect his or her

efforts toward making a lot of money. The ERG model suggests that individuals may

move down as well as up the hierarchy depending on their ability to satisfy needs.

3. Many companies find that creating a humane work environment that allows people

to achieve a balance between work and personal life is a great high-level motivator.

Making work fun plays a role in creating this balance as well. Having fun at work

relieves stress and enables people to feel more “whole.”

C. A Two-Factor Approach to Motivation Exhibit 12.4

1. Frederick Herzberg asserted that work characteristics associated with dissatisfaction

were different from those pertaining to satisfaction. This prompted the idea that two

different factors influenced work motivation and an employee’s behavior at work,

leading to his development of the two-factor theory. The two factors that influence

motivation are hygiene factors and motivators.

a. Hygiene factors relate to lower-order needs and involve the absence or presence

of job dissatisfiers, such as working conditions, pay and security, company

policies, supervisors, and interpersonal relationships. When hygiene factors are

poor, work is dissatisfying. Good hygiene factors remove the dissatisfaction, but

they do not cause satisfaction or motivation. Instead, employees are neutral

toward work.

b. Motivators relate to higher-order needs and include things such as achievement,

recognition, responsibility, the work itself, and the opportunity for personal

growth. When motivating factors are present, workers are highly motivated and

Motivating Employees •

satisfied. The absence of motivating factors removes satisfaction, but does not

cause dissatisfaction. Instead, employees are neutral toward work.

2. The manager’s role is to provide hygiene factors to meet basic needs and use

motivators to meet higher-level needs to propel employees toward achievement and

satisfaction.

D. Acquired Needs

1. David McClelland developed acquired needs theory, which proposes that certain

types of needs are acquired or learned during an individual’s lifetime. People are not

born with these needs, but may learn them through life experiences. McClelland

addressed three categories of needs.

a. Need for achievement: The desire to accomplish something difficult, attain a

high standard of success, master complex tasks, and surpass others.

b. Need for affiliation: The desire to form close personal relationships, avoid

conflict, and establish warm friendships.

c. Need for power: The desire to influence or control others, be responsible for

others, and have authority over others.

2. McClelland studied human needs and their implications for management. People

with a high need for achievement are frequently entrepreneurs. People with high

need for affiliation are successful integrators, whose job is to coordinate the work of

several departments in an organization. A high need for power is often associated

with successful attainment of top levels in the organizational hierarchy.

Discussion Question #7: A survey of teachers found that two of the most important rewards

were the belief that their work was important and a feeling of accomplishment. According to

Maslow’s theory, what needs do these rewards meet?

NOTES________________________________________________________________________

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NEW MANAGER SELF-TEST: NEED FOR ACHIEVEMENT, AFFILIATION, AND POWER

David McClelland’s research found that some human needs are learned during early life

experiences, and the three that he studied are personal need for achievement, affiliation, and

power: Achievement means the need to excel. Affiliation means the need for harmonious

relationships. Power means the need to direct and influence others. One of the three needs is

typically stronger than the others in most people. This test will assess these three elements of

needs. The higher one scores on a need, the stronger it is and the more it guides his or her

behavior. If you can align your career to use and satisfy your stronger needs, you are more

likely to be successful.

Motivating Employees •

IV. PROCESS PERSPECTIVES ON MOTIVATION

Process theories explain how employees select behaviors with which to meet their needs and

determine if their choices were successful. The basic process theories are goal-setting, equity

theory, and expectancy theory.

A. Goal Setting Exhibit 12.5

1. Goal-setting theory proposes that specific, challenging goals increase motivation

and performance when the goals are accepted by subordinates who receive feedback

to indicate progress toward goal achievement. Goal-setting theory includes four key

components:

a. Goal specificity: The degree to which goals are concrete and unambiguous.

b. Goal difficulty: The notion that hard goals are more motivating than easy ones.

c. Goal acceptance: Employees must “buy into” the goals and be committed to

them.

d. Feedback: People get information about how well they are doing in progressing

toward goal achievement.

2. Goal setting increases motivation because it enables people to focus their energies in

the right direction. People know what to work toward, so they can direct their efforts

toward the most important activities to accomplish the goals. Goals energize

behavior because people feel compelled to develop plans and strategies that keep

them focused to accomplish the objectives.

B. Equity Theory

1. Equity theory, developed by J. Stacy Adams, focuses on individuals’ perceptions of

how fairly they are treated relative to others. People evaluate equity by a ratio of

inputs to outcomes. Inputs to a job include such things as education, experience,

effort, and ability. Outcomes from a job include such things as pay, recognition,

benefits, and promotions.

2. The input-to-output ratio may be compared with another person in the work group or

to a perceived group average. If people perceive that their input-to-outcome ratio is

equal to that of those to whom they compare themselves, they believe their treatment

is fair and equitable. A state of equity exists whenever the ratio of one person’s

outcomes to incomes equals the ratio of another person. Inequity exists when these

ratios are not equal. Perceived inequity creates tensions within individuals that

motivate them to bring equity into balance.

3. The most common methods for reducing a perceived inequity are:

Motivating Employees •

a. Change work effort, such as by decreasing the level of effort or increasing

absenteeism.

b. Change outcomes, such as by obtaining a salary increase or other additional

benefits or perks.

c. Change perceptions, such as by artificially increasing the status attached to one’s

job.

d. Leave the job. If equity cannot be restored through any of the previous methods,

people may decide to leave their jobs rather than suffer the inequity of being

underpaid or overpaid expecting to find a more favorable balance of rewards.

4. The implication of equity theory for managers is that employees evaluate the

perceived equity of their rewards compared to others’. An increase in salary or

promotion will not motivate if it is perceived as inequitable relative to other

employees. Smart managers try to keep employees’ feelings of equity in balance to

keep their workforce motivated.

Discussion Question #6: If an experienced executive assistant discovered that she made the

same amount of money as a newly hired janitor, how do you think she would react? What inputs

and outcomes might she evaluate to make this comparison?

NOTES________________________________________________________________________

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C. Expectancy Theory Exhibit 12.6

1. Expectancy theory, associated with the work of Victor Vroom, suggests that

motivation depends on individuals’ expectations about their ability to perform tasks

and receive desired rewards. It focuses on the thinking process individuals use to

obtain rewards. Expectancy theory is based on the relationship among the

individual’s effort, performance, and the desirability of outcomes associated with

high performance.

a. E → P expectancy involves determining whether putting effort into a task will

lead to high performance. The individual must have the ability, previous

experience, and necessary resources and opportunity to perform.

b. P → O expectancy involves determining whether successful performance will

lead to the desired outcome. It is the belief that high performance will lead to a

desired reward.

c. Valence is the value of outcomes, or attraction to outcomes, for the individual. If

an employee does not value the outcomes available from high effort and good

performance, motivation will be low. If outcomes have a high value, motivation

Motivating Employees •

will be higher. Expectancy theory attempts to establish that needs and rewards

exist and may be different for every individual.

2. Managers’ responsibility is to help subordinates meet their needs and at the same

time attain organizational goals. Managers try to find a match between a

subordinate’s skills and abilities, job demands, and available rewards. Companies

use expectancy theory principles by designing incentive systems that identify

organizational outcomes and give everyone a chance for rewards. The trick is

designing a system that fits with employees’ abilities and needs.

V. REINFORCEMENT PERSPECTIVE ON MOTIVATION

Reinforcement theory looks at the relationship between behavior and its consequences. The

focus is on changing or modifying employees’ on-the-job behavior through the appropriate use

of immediate rewards and punishments.

A. Direct Reinforcement Exhibit 12.7

1. Behavior modification is the technique by which reinforcement theory is used to

modify behavior. The basic assumption underlying behavior modification is the law

of effect, which states that behavior that is positively reinforced tends to be repeated,

and behavior that is not reinforced tends not to be repeated. Reinforcement is

defined as anything that causes a certain behavior to be repeated or inhibited. There

are four common reinforcement tools: positive reinforcement, avoidance learning,

punishment, and extinction.

a. Positive reinforcement is the application of a pleasant and rewarding

consequence following a desired behavior. Praise for a job well done increases

the likelihood the excellent work behavior will occur again. Studies show that

positive reinforcement improves performance.

b. Avoidance learning is the removal of an unpleasant consequence following a

desired behavior, sometimes called negative reinforcement. Employees learn to

do the right thing by avoiding unpleasant situations. An example would be when

a supervisor stops criticizing an employee once the incorrect behavior has

stopped.

c. Punishment is the application of unpleasant consequences following undesirable

behavior. The use of punishment in organizations is controversial because it fails

to indicate the correct behavior. Almost all managers find the need to impose

punishment occasionally, from reprimands to employee suspensions or firings.

d. Extinction is the withdrawal of a positive reward following undesirable

behavior. Extinction involves withholding pay raises, praise, and other positive

outcomes with the idea in mind that behaviors that are not positively reinforced

will be less likely to occur in the future.

Motivating Employees •

NOTES________________________________________________________________________

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B. Social Learning Theory

1. Social learning theory is related to the reinforcement perspective, but it proposes

that an individual’s motivation can result not just from direct experience of rewards

and punishments, but also from the person’s thoughts and beliefs and his or her

observations of other people’s behavior.

2. Vicarious learning, or observational learning, occurs when an individual sees others

perform certain behaviors and get rewarded for them. This can be used by managers

to enhance employees’ motivation to perform desired behaviors by ensuring that the

employee (1) has a chance to observe the desirable behaviors, (2) accurately

perceives the behavior, (3) remembers the behaviors, (4) has the necessary to skills to

perform the behaviors, and (5) sees that the behaviors are rewarded by the

organization.

VI. JOB DESIGN FOR MOTIVATION

A job in an organization is a unit of work that a single employee is responsible for performing.

Jobs are important because performance of their components may provide rewards that meet

employees’ needs. Job design is the application of motivational theories to the structure of

work for improving productivity and satisfaction. The following are approaches to job design.

A. Job Enrichment

1. Job rotation systematically moves employees from one job to another, increasing

the number of different tasks an employee performs. Job enlargement combines a

series of tasks into one new, broader job. The primary trend is toward job

enrichment, which incorporates high-level motivators into the work including job

responsibility, recognition, and opportunities for growth, learning, and achievement.

Employees have control over the resources necessary for the job, make decisions on

how to do the work, experience personal growth, and set their own work pace. Job

enrichment increases employees’ motivation and job satisfaction.

B. Job Characteristics Model Exhibit 12.8

1. Hackman and Oldham’s research concerns work redesign, defined as altering jobs

to increase both the quality of employees’ work experience and their productivity.

The job characteristics model comprises core job dimensions, critical

psychological states, and employee growth-need strength.

a. Core Job Dimensions: The more a job contains these core characteristics, the

higher the motivation, quality of performance, and satisfaction will be. A job’s

motivational potential includes:

Motivating Employees •

• Skill variety. The number of diverse activities that compose a job and the

number of skills used to perform it.

• Task identity. The degree to which an employee performs a total job with a

recognizable beginning and ending.

• Task significance. The degree to which a job is perceived as important and

having an impact on the company or customers.

• Autonomy. The degree to which the worker has freedom, discretion, and

self-determination in planning and carrying out tasks.

• Feedback. The extent to which doing the job provides information to the

employee about his/her performance.

b. Critical Psychological States: This model states that core job dimensions are

more rewarding when individuals experience three psychological states in

response to job design.

• Meaningfulness of work. The work itself is satisfying and provides intrinsic

rewards.

• Experienced responsibility. Autonomy influences the experience of

responsibility.

• Knowledge of actual results. Feedback provides information about results.

Employees know how they are performing and can change work

performance to increase desired outcomes.

c. Personal and Work Outcomes: The impact of the five job characteristics on the

psychological states of experienced meaningfulness, responsibility, and

knowledge of actual results leads to the personal and work outcomes of high

work motivation, high work performance, high satisfaction, and low

absenteeism and turnover.

d. Employee Growth-Need Strength: Employee growth-need strength is the final

component of the model. It means that people have different needs for growth

and development. If a person wants to satisfy low-level needs, such as safety

and belongingness, the job characteristics model has less effect. When a person

has a high need for growth and development and the desire for personal

challenge, achievement, and challenging work, the model is effective.

• There are cross-cultural differences in the impact of job characteristics.

Intrinsic factors such as autonomy and challenge are motivators in the U.S;

however, they may contribute little to motivation and satisfaction in a

country such as Nigeria, and might even lead to demotivation. The link

between intrinsic characteristics and job motivation and satisfaction is