Chapter 11: Motivation P a g e | 1
Effective Management 7th Edition
Chapter 11: Motivation
Pedagogy Map
This chapter begins with the learning outcome summaries and terms covered in the chapter, followed by a
set of lesson plans for you to use to deliver the content in Chapter 11.
Lesson Plan for Lecture (for large sections)
Lesson Plan for Group Work (for smaller classes)
Assignments with Teaching Tips and Solutions
Highlighted Assignments Key Points
What Would You Do? What can SAS do to attract and retain a highly talented
workforce as it faces stiff competition from other firms?
Management Team Decision The management team must decide whether it will allow
employees to participate in fantasy football during work
hours.
Additional Assignments Key Points
Management Decision Students are asked to consider how they would motivate
employees to take more vacation time.
Develop Your Career Potential Students practice motivating themselves by considering their
discretionary spending as the source of perks.
11-1 Explain the basics of motivation.
Motivation is the set of forces that initiates, directs, and makes people persist in their efforts, over time, to
accomplish a goal. Managers often assume motivation to be the only determinant of performance, but job
performance is a multiplicative function of motivation times ability times situational constraints. If any
11-2 Use equity theory to explain how employees’ perceptions of fairness affect motivation.
The basic components of equity theory are inputs, outcomes, and referents. After an internal comparison
in which employees compare their outcomes with their inputs, they then make an external comparison in
which they compare their O/I ratio with the O/I ratio of a referent or a person who works in a similar job
11-3 Use expectancy theory to describe how workers’ expectations about rewards, effort, and the
link between rewards and performance influence motivation.
Expectancy theory holds that three factors affect the conscious choices people make about their
motivation: valence, expectancy, and instrumentality. Valence is simply the attractiveness or desirability
Chapter 11: Motivation P a g e | 3
11-4 Explain how reinforcement theory works and how it can be used to motivate.
Reinforcement theory says that behavior is a function of its consequences. Reinforcement has two parts:
reinforcement contingencies and schedules of reinforcement. The four kinds of reinforcement
11-5 Describe the components of goal-setting theory and how managers can use them to motivate
workers.
A goal is a target, objective, or result that someone tries to accomplish. Goal-setting theory says that
people will be motivated to the extent to which they accept specific, challenging goals and receive
11-6 Discuss how the entire motivation model can be used to motivate workers.
Motivating employees can be a difficult processit can be a challenge even to know where to begin. If
youre having difficulty figuring out why people arent motivated where you work, Exhibit 11.12
provides a useful, theory-based starting point.
Terms
continuous reinforcement schedule
distributive justice
equity theory
expectancy
expectancy theory
extinction
extrinsic reward
goal difficulty
goal specificity
goal-setting theory
inputs
instrumentality
intermittent reinforcement schedule
intrinsic reward
motivation
needs
negative reinforcement
outcome/input (O/I) ratio
outcomes
overreward
performance feedback
positive reinforcement
reinforcement contingencies
reinforcement theory
schedule of reinforcement
underreward
valence
variable interval reinforcement schedules
variable ratio reinforcement schedule
Lesson Plan for Lecture
Pre-Class Prep for You: Pre-Class Prep for Students:
Review the chapter and determine what points to
cover.
Bring PPT slides.
Read Chapter 11, bring book.
Warm Up Begin Chapter 11 by asking students, What kinds of things motivate people?
As you move through the content for this class, refer back to the list and try to place
items into the motivation theories presented in the chapter.
Content
Delivery
Lecture slides: Make note of where you stop so you can pick up at the next class
meeting. Slides have teaching notes on them to help you as you lecture.
Topics PowerPoint Slides Activities
11-1 Basics of
Motivation
11-1b Need Satisfaction
11-1d Motivating with the
Basics
1: Motivation
2: What Would You Do?
4: A Basic Model of
5: Effort & Performance
6: Need Satisfaction
7: Adding Needs
Satisfaction to the Model
8: Needs Classification of
Different Theories
9: Predictions of Need
Ask students, How do you
respond to praise? How
exactly does it motivate
you? Can one be motivated
by praise without being a
glory seeker?
11-2 Equity Theory
11.2b How People React
to Perceived Inequity
14: Outcome/Input Ratios
17: Adding Equity
Theory to the Model
Generate a quick debate on
taxation.
11-3 Expectancy Theory
11-3b Motivating with
Expectancy Theory
19: Components of
Theory to the Model
21: Motivating with
Ask students to think about
they have been met) have
influenced their attendance,
Chapter 11: Motivation P a g e | 5
11-4 Reinforcement
Theory
11-4b Schedules for
Delivering Reinforcement
11-4c Motivating with
Reinforcement Theory
22: Adding
Reinforcement Theory to
Reinforcement Theory
24: Schedules for
Delivering Reinforcement
25: Intermittent
11-5 Goal-Setting
Theory
11-5a Components of
Goal-Setting Theory
28: Components of Goal-
Setting Theory
29: Motivating with
Goal-Setting Theory
11-6 Motivating with the
Integrated Model
31: Motivating with the
Integrated Model
The theories in the chapter
are scientific and as such
can be perceived as dry. Is
there a role for fun in
motivation? What is it?
and
1. Assign students Motivation Research from the Additional Activities. That
2. Assign students to review Chapter 11 and read the next chapter on your syllabus.
Remind students about any upcoming events.
Chapter 11: Motivation P a g e | 6
Lesson Plan for Group Work
Pre-Class Prep for You: Pre-Class Prep for Students:
Review material to cover and modify your lesson
plan to meet your needs.
Read Chapter 11, bring book.
Warm Up Begin Chapter 11 by asking students, What kinds of things motivate people?
As you move through the content for this class, refer back to the list and try to place items
into the motivation theories presented in the chapter.
Content
Delivery
Introduce the chapter and present the Basics of Motivation (Section 11-1)
Consider breaking for the following activity:
“Needs and Motivation.” Divide the class into small groups (3 4 students). Each
group should assume that it is the professor for a college class. The class has four
students who have different needs: 1) Tony cannot seem to stop talking during class
lectures; 2) Sharon, who is obviously very bright, tends to dominate class discussions;
Segue into the next section by asking students, Is equity an absolute? Then, break for the
following activity:
“That’s Not Fair”
Divide your class into groups of 34 students each and explain this scenario: Jaako
Rytsola, a Finnish Internet entrepreneur, was fined $71,400 for speeding, but a college
students fine for the same offense was only $106. Depending on the outcome, you
Lecture on How Perceptions and Expectations Affect Motivation (Sections 11-2 and 11-3).
Segue into the next section by asking students to remember back to elementary school and a
time when the whole class had to put their head down (or be punished in another way)
because a few kids were causing trouble.
Chapter 11: Motivation P a g e | 7
Present How Rewards and Goals Affect Motivation (Sections 11-4 and 11-5). Then, break
for the following activity:
“What Motivates College Students”
Divide your class into groups of 3 5 students each. Groups will consider the extent to
which financial, nonfinancial, and social rewards motivate them to perform well in
college (i.e., get good grades). To do that, groups will need first to create a list for
Review the chapter by presenting Motivating with the Integrated Model (Section 11-6).
Conclude the class this way:
The motivational theories presented in the chapter are scientific in nature, and none
addresses the role of fun in motivation. Does fun motivate you? Why or why not? Do you
think having fun at work would motivate most people?
Chapter 11: Motivation P a g e | 8
Assignments with Teaching Tips and Solutions
What Would You Do Case Assignment
What Really Happened? – Solution
SAS
In the case you learned that SAS, one of the leading providers of statistical software to Fortune 500
companies and universities, is facing numerous challenges. First, from website traffic, to credit cards
replacing cash, to genome sequencing, to sentiment analysis (analyzing every tweet, blog, and discussion
group comment about your company and its products), the amount of digital data available to companies
is increasing at exponential rates. While a good thing for SAS, it also means that SAS will need to grow
With competition intensifying, SAS is shortening its product development cycle from between 24 and 36
months to between 12 and 18 months. Change like that can’t be achieved without attracting and retaining
a highly motivated workforce. That’s increasingly difficult with tech job openings up 62 percent and a 22
percent average turnover rate in the software industry. The first step in maintaining your competitiveness
is figuring out what motivates people to join SAS.
Motivation is the set of forces that initiates, directs, and makes people persist in their efforts over time to
accomplish a goal. One of the things we know about motivation is that what motivates one employee may
not motivate another. Expectancy theory calls this valence, which is simply the attractiveness or
desirability of various rewards or outcomes. Furthermore, people are not only motivated by different
things, different things motivate them over time. Another way of expressing this is that people are
motivated to fulfill unmet physical or psychological needs. When needs are not met, people experience an
internal state of tension. But once a particular need is met, it no longer motivates. When this occurs,
people become satisfied and are then motivated by other unmet needs. Fortunately, studies generally show
that there are only two general kinds of needs: lower-order needs and higher-order needs. Higher-order
needs will not motivate people as long as lower-order needs remain unsatisfied.
Consequently, the first step in SASs plan is to aggressively meet workers lower-order needs (safety,
physiological, and existence). In addition to highly competitive benefits (i.e., health insurance, life
insurance, and short- and long-term disability coverage), few companies offer a better set of employee
Chapter 11: Motivation P a g e | 9
However, because of the variety of lower-order needs that must be met in todays work force, SAS
doesnt stop there. Theres also the SAS health care center which, with four doctors, 10 nurse
practitioners, and an overall staff of 56, provides doctor visits and extensive basic care, from pregnancy
tests to allergy shots to blood tests, all at no cost to employees. Gale Adcock, director of corporate health
services says, We dont even have a billing department. We charge you for one thingif you miss your
appointment and dont give us notice. Thats $10. SAS employees make 40,000 trips to the health care
center. Ninety percent of SAS families use it. Next to the health center are the work/life and wellness
centers which offer extensive programming, such as Pilates, yoga, weight management, smoking
cessation, dive-in movies (viewed from a float in the SAS pool), weightlifting, and on and on.
While it might seem so, SAS doesnt say yes to every perk proposed by the HR department and its
Second, getting people to join SAS is one thing, but how do you get them to work hard and maximize their
efforts? Should you be egalitarian and pay everyone the same, or should you closely link pay and
performance?
As discussed above, SAS has done an exceptional job of satisfying its employees needs. Since higher–
order needs will not motivate people as long as lower-order needs remain unsatisfied, companies should
satisfy lower-order needs first. In practice, this means providing the equipment, training, and knowledge
to create a safe workplace free of physical risks, paying employees well enough to provide financial
Another way for SAS to motivate employees to work hard is by linking rewards to performance.
Expectancy theory says that people will be motivated to the extent to which they believe that their efforts
will lead to good performance, that good performance will be rewarded, and that they will be offered
attractive rewards. Extrinsic rewards are usually a key part of implementing the ideas behind expectancy
theory, one of which is to take specific steps to link rewards to individual performance in a way that is
clear and understandable to employees. Extrinsic rewards, such as pay and company stock are tangible,
visible to others, and are given to employees contingent on the performance of specific tasks or behaviors.
Companies use extrinsic rewards to motivate people to join the organization, regularly attend their jobs,
perform their jobs well, and stay with the organization.
Indeed, SASs extrinsic rewards are so good that few people leave. SAS employees typically get a year-
end bonus (linked to their individual performance) and a profit-sharing check (which can be as high as
15% of ones salary, depending on how well the company performs). In this way, it balances a focus on
Chapter 11: Motivation P a g e | 10
Do employees work hard at SAS? Bev Brown, who works in internal communications, says they do.
Some may think that because SAS is family-friendly and has great benefits that we don’t work hard. But
people do work hard here, because they‘re motivated to take care of a company that takes care of them.
David Russo, who was SASs director of Human Resources for 18 years makes the point more sharply,
This is not the good ship lollipop. However, because SAS employees tend to stay (more on this in the
Finally, how do you get your most talented managers and software engineers to stay? Does SAS need to
“go public” like its competitors and issue stock and stock options to its employees? Or are there other
ways to for SAS to reward people and remain competitive in the talent market?
With a shortage of high tech workers and an average industry turnover rate of 22 percent, are SASs
incredible employment benefits and perks, combined with its aggressive performance bonuses and profit
sharing, enough to get people to stay? At most companies and most industries, the answer would be yes,
unequivocally yes. But the high tech industry is different. For example, when Facebook offered one of
If Google is challenged to keep its best people, then youd think SAS would be, too. But, other than their
locations, theres one key difference between these companies. Google is publically owned, and can offer
stock and stock options to its employees, and SAS is not. SAS is privately owned, with two-thirds of that
ownership belonging to founder and CEO Jim Goodnight. So, unlike Google, SAS is unable to offer stock
and stock options to its managers and employees. But, if it were to go public and sell shares of stock to
the public, it would be able to do so. The question, of course, is whether it should.
Competitive forces in its markets are one argument for doing so. SAS senior vice president Jim Davis
said, We know we have to change, no question about it. Our market space has changed dramatically in
Goodnight explains further: It’s great to have the freedom when you‘re not public. When you’re public,
you’re expected to just lay people off and try to make the bottom line look a bit better. I don’t believe in
laying people off. At the start of 2009, we made if very clear there would be no layoffs. We definitely saw
a precipitous fall at the end of 2008. People just quit buying software and at the beginning of 2009, we
didn’t know if that trend was going to continue. We carefully said, Let’s try not to hire anybody, let‘s not
Chapter 11: Motivation P a g e | 11
have any layoffs, not have any salary increases,’ and I told people to try to keep expenses down. In 2009,
we ended up with 2% growth in revenue and higher profits than ever before. If you put faith in people that
you’re going to protect their jobs, not throw them to the wolves and that they’re not going to lose their
house, I think it pays off a tremendous amount in productivity.
That approach, combined with world-class benefits and perks, and aggressive bonus and profit-sharing
programs, gives SAS a 2 to 4 percent rate of turnover most years. Thats exceptionally low for any
company, but amazingly low for technology companies. Stanford University Business Professor Jeffrey
Goodnight says, My philosophy has always been: You either spend money on your employees, or you
spend the same amount of money on headhunters, recruiters, on training, on lost productivity. If
somebody leaves, it might be a year before the next person who replaces them can get to the same level or
speed the previous employee was moving at. So it’s much better to retain employees than to spend money
on recruiting or training (replacements).
While competitive extrinsic rewards such as pay, benefits, bonuses, and stock plans are key to attracting a
talented, motivated workforce, studies show that once people have joined a company they are much more
motivated by intrinsic rewards, the natural rewards associated with performing a task or activity for its
own sake. Examples of intrinsic rewards include a sense of accomplishment or achievement, a feeling of
This is also something at which SAS excels. Jeffrey Chambers, SASs HR manager, says, To attract
people, we have to have a strong employment brand, we have to be the employer of choice, and we have
to be known as a culture that engenders trust. And to keep people, we need to do all those things, and
provide intellectually challenging work for employees.
The results of SASs approach are matched by few companies. SAS gets 200 applicants for every job
opening. Its been profitable every year since its founding. Ninety-eight percent of its customers renew
Chapter 11: Motivation P a g e | 12
Management Team Decision
READY FOR FOOTBALL?
Purpose
In this case, students are asked to consider what kind of non-work activities they would allow in order to
maintain the motivation and morale of their employees.
Setting It Up
You can introduce the case by asking students if they feel that playing games in the office helps people to
do their work better by giving them some time to relax, or makes people less focused and less productive.
Questions
1. Do you think that allowing employees to play in fantasy leagues at work is a good motivational tool?
Why or why not?
2. What would be an effective method to have employees stop playing fantasy games without destroying
their morale or motivation?
One way that managers can put an end to undesirable behaviors in the workplace is to use
reinforcement theory, which says that behavior is a function of its consequences, that behaviors
followed by positive consequences (i.e., reinforced) will occur more frequently, and that behaviors
either followed by negative consequences or not followed by positive consequences will occur less
frequently.
Practice Being a Manager
THE MAKINGS OF MOTIVATION
Exercise Overview and Objective
In this exercise, students conduct field interviews of two individuals on the topic of motivation at work.
Students then share their findings in a short paper, and also in class discussion. The aim of this exercise is
to give students an opportunity to learn from practicing professionals on a topic of central importance to
managershow to support strong and healthy motivation at work.
Preparation
This exercise requires extensive student preparation. Students are required to interview at least two
individuals about motivation at work, and then to write a one-page paper summarizing their findings.
Given that students must schedule interviews with working professionals, you may want to allow at least
two weeks for preparatory work.
You may set parameters for interview subjects in any manner that best supports your course and
session objectives. Some instructors may want to narrow the focus to one or more industries (e.g.,
healthcare), or to a particular level of management (e.g., middle managers or above). Others may wish to
allow a greater range. Non-profit organizations are keenly interested in the topic of motivation
particularly given their mostly volunteer workforce. Some managers in professional athletic or artistic
organizations might also provide excellent insight on the topic.
One recommended qualification would be that students conduct field interviews of individuals who
Three interview questions are provided in the exercise (Step 3):
How would you describe your work? What are some of the things that you particularly like about
your work?
We are currently studying the topic of motivation in one of my classes. What boosts your
motivation at work? If you have ever experienced a period of low motivation, can you identify
things that might have contributed to your losing steam in your work?
What kinds of rewards or incentives work best to motivate individuals and/or teams doing your
type of work? What kind of rewards or incentives doesnt work so well?