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CHAPTER 12
MOTIVATING EMPLOYEES
CHAPTER OUTLINE
Are You Ready to Be a Manager?
I. The Concept of Motivation
II. Content Perspectives on Motivation
A. The Hierarchy of Needs
B. ERG Theory
C. A Two-Factor Approach to Motivation
D. Acquired Needs
III. Process Perspectives on Motivation
A. Goal Setting
IV. Reinforcement Perspective on Motivation
V. 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
ANNOTATED LEARNING OBJECTIVES
After studying this chapter, students should be able to:
1. Define motivation and explain the difference between intrinsic and extrinsic rewards.
Motivation generally is defined as the arousal, direction, and persistence of behavior. The study
of motivation concerns is what prompts people to initiate action, what influences their choice of
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 and reinforce employees in
directing energies and priorities toward attainment of organizational goals. Maslow’s hierarchy
3. Identify and explain process theories of motivation.
Process theories of motivation explain how workers select behavioral actions to meet their needs
4. Describe the reinforcement perspective and how it can be used to motivate employees.
Reinforcement theory looks at the relationship between behavior and its consequences. It
5. Explain social learning theory, including the concepts of vicarious learning, self-
reinforcement, and self-efficacy.
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,
6. 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.
Job design is the application of motivational theories to the structure of work for improving
7. Explain how empowerment heightens employee motivation.
Organizations have adopted new programs that apply motivational theory to improve employees’
8. Identify three elements of employee engagement and describe some ways managers can
create a work environment that promotes engagement.
People experience a sense of meaningfulness when they believe they are working toward
something of importance and have a chance to accomplish something that provides real value to
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LECTURE OUTLINE
INTRODUCTION
Janice Rennie makes $350,000 a year selling residential real estate in Toronto; she attributes her
success to the fact that she likes to listen carefully to clients and then find houses to meet their
needs. Greg Storey is a skilled machinist who is challenged by writing programs for numerically
Are You Ready to Be a Manager?
This questionnaire gives students insight into what motivates them.
I. THE CONCEPT OF MOTIVATION
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New Manager Self-Test: Are You Engaged or Disengaged?
The term employee engagement is becoming popular in the corporate world. Engagement means
that people involve and express themselves in their work, going beyond the minimum effort
Exhibit 12.1: A Simple Model of Motivation
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 managers understand what prompts people to initiate action, what
II. CONTENT PERSPECTIVES ON MOTIVATION
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Exhibit 12.2: Maslow’s Hierarchy of Needs
Content theories emphasize the needs that motivate people. These needs translate into an
internal rive 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
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.
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 and 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,
2. The lower-order needs take priority in that they must be satisfied before higher-order
needs are activated.
a. A person desiring physical safety tries to secure a safer environment and is not be
B. ERG Theory
1. ERG theory was developed by Clayton Alderfer and is a modification of Maslow’s
theory. ERG theory identified three categories of needs.
a. Existence needs. These are the needs for physical well-being.
2. The ERG model and Maslow’s need hierarchy are similar as both are hierarchical
and presume individuals move up the hierarchy one need at a time.
a. The Model contains a frustration-regression principle, suggesting that failure
3. Need hierarchy theory explains why organizations recognize employees, encourage
4. 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.
a. Making work fun plays a role in creating this balance as well.
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Exhibit 12.3: The Motivational Benefits of Job Flexibility
Exhibit 12.4: Herzberg’s Two-Factor Theory
C. A Two-Factor Approach to Motivation
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.
a. Hygiene factors involve the presence or absence of job dissatisfiers, including
working conditions, pay, company policies, and interpersonal relationships.
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.
Discussion Question #8: In the survey reported in question 7, the teachers also reported that
pay and benefits were poor, yet they continue to teach. Use Herzberg’s two-factor theory to
explain this finding.
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 learn them through life experiences.
a. Need for achievementthe desire to accomplish something difficult, attain
2. Implications for management.
a. People with a high need for achievement are frequently entrepreneurs
Discussion Question #5: Would you rather work for a supervisor high in need for
achievement, affiliation, or power? Why? What are the advantages and disadvantages of
each?
Benchmarking: Scvngr
How do you motivate employees who are smart but quirky enough that some psychologists
might call their behavior unstable and grandiose? Highland Capital Partners found a way to do
III. PROCESS PERSPECTIVES ON MOTIVATION
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Process theories explain how employees select behaviors with which to meet their needs and
determine if their choices were successful.
A. Goal Setting
1. Goal-setting theory proposes that specific, challenging goals increase motivation
2. Goal-setting theory includes four key components.
a. Goal specificitythe degree to which goals are concrete and unambiguous.
3. Goal setting increases motivation because it enables people to focus their energies in
the right direction.
a. People know what to work toward, so they can direct their efforts toward the
B. Equity Theory
1. Equity theory, developed by J. Stacy Adams, focuses on individuals’ perceptions of
how fairly they are treated relative to others.
a. 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
2. Methods for reducing a perceived inequity include:
a. Change work effortby decreasing the level of effort or increasing absenteeism.
3. The implication for managers is that employees evaluate the perceived equity of
their rewards compared to others.
a. An increase in salary or promotion will not motivate if it is perceived as
Discussion Question #4: 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?
C. Expectancy Theory
Exhibit 12.5: Major Elements of Expectancy Theory
1. Expectancy theory, associated with Victor Vroom, suggests that motivation
2. It focuses on the thinking process individuals use to obtain rewards.
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When Kevin Rose started Digg in 2004, Facebook was big and Twitter wasn’t even an idea yet.
He was on the cover of BusinessWeek in 2006 with the line, “How this kid made $60 million in
3. Expectancy theory is based on the individual’s effort, performance, and the
desirability of outcomes associated with that 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
4. Managers’ responsibility is to help subordinates meet their needs and at the same
time attain organizational goals.
a. Managers try to find a match between a subordinate’s skills and abilities, job
demands, and available rewards.
IV. REINFORCEMENT PERSPECTIVE ON MOTIVATION
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Reinforcement theory looks at the relationship between behavior and its consequences.
Behavior modification is the technique by which reinforcement theory is used to modify
New Manager Self-Test: Your Approach to Motivating Others
New managers often learn to use reinforcements first, and as they gain more experience are able
to apply expectancy theory. This exercise helps students understand how they apply the
motivational concepts of expectancy and reinforcement in their roles as informal leaders.
A. Reinforcement is defined as anything that causes a certain behavior to be repeated or
inhibited. There are four common reinforcement tools.
1. Positive reinforcement is the application of a pleasant and rewarding consequence
2. Avoidance learning is the removal of an unpleasant consequence following a
3. Punishment is the application of unpleasant consequences following undesirable
Exhibit 12.6: Changing Behavior with Reinforcement
4. Extinction is the withdrawal of a positive reward following undesirable behavior.
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Discussion Question #2: One small company recognizes an employee of the month, who is
V. SOCIAL LEARNING THEORY
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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.
A. Vicarious learning, or observational learning, occurs when an individual sees others
perform certain behaviors and get rewarded for them.
B. Self-reinforcement, or self-control, refers to an individual motivating him or herself by
Spotlight on Skills: The Carrot-and-Stick Controversy
Everybody thought Rob Rodin was crazy when he decided to wipe out all individual incentives
for his sales force at Marshall Industries, a large distributor of electronic components based in El