Chapter 13 – Motivating for Performance
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3. According to the locus of control concept, individuals can be divided into two categories (internals
and externals), with characteristics as outlined below:
Internals – who tend to:
➢ Believe that they can control what happens to them in their lives.
➢ Accept responsibility for their own behavior and the resulting consequences of success or failure.
➢ Be more effective at collecting and using information.
LECTURETTE 13.2: Pay as a Motivator
IS PAY A MOTIVATOR OF WORK BEHAVIOR?
1. Most students make the mistake of believing that money is one of the strongest motivators of work-
related performance.
ARGUMENTS FOR PAY AS A MOTIVATOR
1. Money can motivate people because it can be used to satisfy human needs. Consider the following
examples of how pay can be used to satisfy Maslow’s Hierarchy of Needs:
Maslow’s needs How needs can be satisfied by pay
Physiological Needs Food, clothing, housing
2. Pay-for-performance:
➢ Provides the necessary connection between work-performance and performance evaluation and
consequent rewards (or the lack of it).
Chapter 13 – Motivating for Performance
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➢ Can provide employees with a sense of ownership in and commitment to the employing institu-
ARGUMENTS AGAINST PAY AS A MOTIVATOR
1. Rising income tax scales tend to reduce the reward value of pay increases.
2. The amount of money available to the employing institution for take-home pay is limited by escalat-
ing costs of employee benefit programs.
3. The amount of money available to the employing institution for take-home pay is limited by the fierce
6. Pay plans are usually based on fixed interval scales, which are not as effective as those based on vari-
able ratio scales.
7. The common use of time-based pay plans erodes the perception of a contingency connection between
WHAT’S THE ANSWER? CAN PAY BE A MOTIVATOR?
1. Herzberg’s approach to motivation stipulates that pay can be a demotivator, never a motivator.
2. Following the Herzberg concept, pay below a person’s “threshold level” of pay/worth will cause the
worker to become dissatisfied with the job. However, paying the person at or above the person’s
“threshold level” will neutralize pay as a dissatisfier so that satisfiers (such as responsibility and chal-
2 Adapted from S. Gellerman, The Management of Human Resources (Hinsdale: Dryden Press, 1976); F. Luthans and D. White,
Chapter 13 – Motivating for Performance
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1. Think of a significant mistake made by someone on a job. How did the boss handle it, and what
was the effect?
While the mistakes described will differ, students should be able to come to the conclusion that when
a boss punishes someone for making a mistake, motivation will go down, and the entire organization
2. Why is it so difficult for some managers to empower their people?
Empowering workers refers to sharing power with employees and enhancing their belief that they are
influential contributors to the organization. An empowering work environment allows employees to
participate in decision-making, design their jobs to have greater freedom, participate in setting their
own goals and take responsibility for their work.
3. Think of a job you hold currently or have held in the past. How would you describe the psycho-
logical contract? How does (did) this affect your attitudes and behaviors on the job?
It may be useful to remind students to reflect on hidden expectations that they have regarding the rela-
tionship with their employer when considering this question. The psychological contract refers to the
set of perceptions about what an employee owes an employer and what their employers owe them.
DISCUSSION QUESTIONS
Chapter 13 – Motivating for Performance
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4. If a famous executive were to give a passionate motivational speech, trying to persuade people
to work harder, what do you think the impact would be? Why?
Great speeches by someone outside of the organization probably will not make much impact. Some
5. Give some examples of situations in which you wanted to do a great job but were prevented
from doing so. What was the impact on you, and what would this suggest to you in your efforts
to motivate other people to perform?
It may be helpful to have students begin their answers to this question by thinking back to specific
situations and then generating a list of the factors that prevented them from doing a good job. This
listing may include:
➢ Insufficient time – either too little time allowed for the task or poor time management.
6. Discuss the similarities and differences between setting goals for other people and setting goals
for yourself. When does goal setting fail and when does it succeed?
The process of establishing goals for other people and setting them for yourself is, or should be, very
similar. The goals obviously have to be acceptable to the individual, challenging but attainable, and
specific, quantifiable, and measurable.
Chapter 13 – Motivating for Performance
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Tuesday morning that may run all day, the need to interview three people by the end of the week,
etc.)
Measurement of success is a personal judgment. One person may perceive something as a success and
7. Identify examples of people inadvertently reinforcing the wrong behaviors or punishing or ex-
tinguishing good behaviors.
Some examples of reinforcing the wrong behaviors:
➢ Telling a salesperson that he or she will be fired if a specific sales level is not met – this can lead
to illegal activities in an attempt to meet the goal.
8. Assess yourself on McClelland’s three needs. On which needs are you highest, and on which are
you lowest? What are the implications for you as a manager?
McClelland’s three needs are achievement, affiliation, and power (either personalized or socialized),
and students will undoubtedly have very different needs.
9. Identify a job you have worked and appraise it on Hackman and Oldham’s five core job dimen-
sions. Also describe the degree to which it made you feel empowered. As a class, choose one job
and discuss together how it could be changed to be more motivating and empowering.
Hackman and Oldham’s five core job dimensions are (1) skill variety, (2) task identity (the comple-
Chapter 13 – Motivating for Performance
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10. Using expectancy theory, analyze how you have made and will make personal choices in a ma-
jor area of study, a career to pursue, or job interviews to seek.
According to expectancy theory, the person’s work efforts lead to some level of performance. Stu-
dents who hate mathematics and feel that they are bad in this subject area will probably avoid a major
area of study that has an extensive mathematical component. They would not expect to do well. By
11 Describe a time that you felt unfairly treated and why. How did you respond to the inequity?
What other options might you have had?
Again, students will have individual responses such as getting a parking ticket when they were late a
few minutes, a grade that they felt was unfair, or not winning a position on a team or group.
12. Provide examples of how outcomes perceived as unfair can decrease motivation. Then discuss
how procedural justice, or fair process, can help overcome the negative effects.
Student answers to this question may vary. Students may cite work experiences in which they were
treated unfairly. For instance, students may discuss how they were passed over for a promotion, even
Chapter 13 – Motivating for Performance
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13. What are the implications for your career, and how will you prepare for the psychological con-
tracts described at the end of the chapter?
The employment relationship has changed dramatically over the past decade. Students may view the
new psychological contracts as unstable and feel that there are no guarantees. Formally, employment
14. Set some goals for yourself, considering the discussion about goal setting in the chapter.
The goals set by students will vary, but check them to be sure they are all specific, measurable, attain-
Chapter 13 – Motivating for Performance
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EXPERIENTIAL EXERCISE 13.1 – ASSESSING YOURSELF
Purpose: To help the reader to think about current and preferred ways of clarifying values and setting
goals.
Time: 15 minutes (on own or in group setting/class)
Resources/Set-Up: None required other than exercise in chapter.
Activity Instructions: Encourage participants to take this seriously and to complete the exercise in a qui-
about the results.
Discussion/Debrief: Ask participants questions such as:
• In what areas are you particularly strong?
• In what areas is there room for improvement?
• What are some obstacles you see in becoming more effective at clarifying values and setting
goals?
EXERCISE 13.2 – PERSONAL GOAL SETTING
Purpose: To allow participants to begin the goal setting process
Time: 30 minutes if all goals are written out prior to class
10 minutes if students work on a goal or two (in class)
Resources/Set-up: None required other than this exercise which is in the chapter. Encourage partici-
Activity Instructions:
1. In the space provided, participants brainstorm their current, mid-term, and long-term goals in the
various categories. In this phase they can be creative and idealistic rather than realistic and
EXPERIENTIAL EXERCISES
Chapter 13 – Motivating for Performance
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2. From the twelve to eighteen goals listed participants should choose the three that are the most im-
portant to them at this time. They should write a goal statement for each one. (Make the point
3. On a separate sheet of paper, or using the grid in the previous exercise, they should develop an
action plan for each goal statement.
Discussion/Debrief:
1. After allowing ample time to flesh out the three goals (ensuring they are SMART), ask students
to pair up with someone they feel they comfortable with in the class, or place them in small
groups.
2. Taking turns, each student should explain their goals and how they intend to achieve them. Next,
they should ask for feedback. The partner or group may have suggestions for resources or other
strategies for achieving the goals. They may also have a sense if the goal is too optimistic or not
specific enough.
Group Discussion Questions:
1. What are some examples of goals being committed to by members of your group (without men-
tioning names) and what were some of the strategies offered by the group for attaining these
goals?
2. What are some of the obstacles that might stand in the way and what were some ideas (posed by
the group) for overcoming these?
Chapter 13 – Motivating for Performance
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EXERCISE 13.4 – WHAT DO STUDENTS WANT FROM THEIR JOBS?
Objectives
1. To demonstrate individual differences in job expectations.
Suggested responses
While students’ responses will vary, many will suggest intrinsic motivating factors. Intrinsic motivat-
ing factors should be present in a working environment.
1.
Advancement opportunities
5
2.
Appropriate company policies
5
3.
Authority
4
4.
Autonomy and freedom on the job
5
5.
Challenging work
5
6.
Company reputation
5
7.
Fringe benefits
5
8.
Geographic location
4
9.
Good co- workers
5
10.
Good supervision
5
11.
Job security
5
12.
Money
5
13.
Opportunity for self-development
5
14.
Pleasant office and working conditions
5
15.
Performance feedback
5
16.
Prestigious job title
4
17.
Recognition for doing a good job
5
18.
Responsibility
5
19.
Sense of achievement
5
20.
Training programs
5
21.
Type of work
5
22.
Working with people
5
Suggested Responses to Discussion Questions
1. Which job rewards are extrinsic, and which are intrinsic?
Jobs that offer extrinsic rewards would include a sales commission job and a piece-rate job that would
pay the employee on the amount he or she produced. There are group incentives that could pay em-
2. Were more response differences found in intrinsic or in extrinsic rewards?
Chapter 13 – Motivating for Performance
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3. In what ways do you think blue-collar workers’ responses would differ from those of college
students?
Teaching Tips
1. Students may need some help distinguishing intrinsic from extrinsic rewards, so the instructor
might present a mini lecture on the subject before the exercise begins.
2. If students have been working in groups throughout the term, ask them to predict what the highest
Chapter 13 – Motivating for Performance
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Big Bison Resorts: Finding the Key to What Employees Value
Case Summary:
CEO Janette Briggs calls Frank Schuman, V.P. of Human Resources to her office where he finds her en-
gaged in conversation with Pedro Gutierrez, head of operations, and Marlys Higgenbotham, CFO, about
Chapter Topics Related to the Case:
• Discuss the concept of motivation.
• Define ways to create jobs that motivate.
Case Discussion Questions:
1. What kinds of behavior would an Employee of the Month program, as described here, reinforce at
Big Bison Resorts? How might the company apply the principles of reinforcement more effectively?
Suggested Response:
The program would reinforce “model” behaviors by employees that lead to the betterment of the organi-
2. How might Big Bison Resorts get input from employees to make the company’s jobs more motivat-
ing? What impact would this effort have on the company’s performance?
Suggested Response:
The company might offer rewards for providing useful feedback. Every good idea that Bison Resorts is
CONCLUDING CASE
Chapter 13 – Motivating for Performance
13–29
levels of collaboration, teamwork, and pride in the organization.
Additional Discussion Questions:
3. How would Big Bison’s employees perceive the equity of the Employee of the Month program?
Compare their reactions to that program with the response you would expect from an effort to involve
employees in improving their jobs.
Suggested Response:
The Employee of the Month program seems very intrinsic compared to an extrinsically-motivating effort
4. Think about a previous job you have held or hold currently. If you had the power to make such deci-
sions, what would you do to make the job more motivating for employees?
Suggested Response:
Chapter 13 – Motivating for Performance
13–30
Example 13.1 – Motivation: Wanda Brown, Vice President and General Manager of Cyberna
Group, states compensation is definitely not a key motivator for people in their careers. Money
Example 13.2 – Goal setting: Google and Intel are spearheading a unique coalition to reduce
greenhouse gas emissions from computing by increasing energy efficiency and changing con-
Example 13.3 – Positive reinforcement: Bob Kimball, store director for a No Frills Supermar-
ket in Omaha, Neb., loves being the bearer of good news. As part of his morning routine, he re-
Example 13.4 – Using expectancy theory: You are trying to motivate a student to study. In or-
der to get the student to study more, you will have to: 1) Train the student on study techniques,
Example 13.5 – Job perception and motivation: How people perceive their jobs can have a big
Example 13.6 – Motivating Jobs: Wood & Grieve is an Australian engineering firm that recent-
3 Wittaker, Stephanie. “It takes more than money to make you happy: A healthy pay cheque is important, but recognition and appre-
ciation are what really motivate employees and keep them engaged.” The Gazette (Montreal), April 1, 2007, pg. G1.
4 Truini, Joe. “An idea that computes: Google, Intel join to cut computer emissions.” Waste News. June 25, 2007, pg. 1.
EXAMPLES
Chapter 13 – Motivating for Performance
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• We are a private company where the owners of the company work alongside everyone
else. We are non-bureaucratic and foster a flat hierarchal structure.
• We have a young, enthusiastic, vibrant and professional workplace. Bring your personali-
So what do you think? Is Wood & Grieve a place where you might like to work? Why or why
not?
Example 13.7 – Equity:In 2011, thousands of teachers went on strike in Washington in opposi-
tion of the state’s plan to limit collective bargaining, compensation, and fringe benefits of public
Example 13.8 – QWL programs: The University of Pennsylvania has QWL programs in three
areas: Work Life Balance, Health Promotion and Wellness, and Appreciation and Recognition.
Chapter 13 – Motivating for Performance
Please see the following additional materials in Connect.
• The Container Store
In 1978 three men opened a company in Dallas, Texas that offered innovative organizational
storage products for home and office use. There are currently 50 Container Store locations across
Do happy workers lead to happy customers and profitable business? Why or why not?
One key Container Store philosophy is that employees should have fun at work. It’s a central as-
There are no Manager’s Hot Seat clips for this chapter
• The Job Diagnostic Survey
• Assessing How Personality Type Impacts Your Goal-Setting Skills
SELF-ASSESSMENT
CHAPTER VIDEO
SUPPLEMENTAL FEATURES
MANAGER’S HOT SEAT (MHS)