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Chapter 13: 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 13.
• Lesson Plan for Lecture (for large sections)
• Lesson Plan for Group Work (for smaller classes)
• Assignments with Teaching Tips and Solutions
What Would You Do Case Assignment – SAS
Self-Assessment – What Do You Need?
Management Decision – Why Won’t They Take a Break?
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?
satisfying lower-order needs are more motivational than
Management Decision
Students are asked to consider how they would motivate
Practice Being a Manager
This exercise allows students to practice designing support
for worker motivation.
Develop Your Career Potential
Students practice motivating themselves by considering their
discretionary spending as the source of perks.
winning. In this scene, the coach visits the home of his
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Supplemental Resources
Where to Find Them
Course Pre-Assessment
IRCD
Course Post-Assessment
IRCD
Learning Outcomes
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 confuse motivation and performance, but job performance is a
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 to their inputs, they then make an external comparison in
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
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:
Who Wants to Be a Manager game
IRCD and online
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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
Terms
continuous reinforcement schedule
distributive justice
equity theory
expectancy
expectancy theory
extinction
motivation
needs
negative reinforcement
outcome/input (O/I) ratio
outcomes
overreward
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.
• Bring book.
Warm Up
Content
Delivery
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Topics
PowerPoint Slides
Activities
What is Motivation?
1 Basics of Motivation
1.1 Effort and
Performance
1.2 Need Satisfaction
1: Motivation
2: What Would You Do?
3: What Is Motivation?
4: Motivation
5: Basics of Motivation
10: Maslow’s Hierarchy
of Needs
11: Alderfer’s ERG
Theory
12: McClelland’s
Learned Needs Theory
How Perceptions &
Expectations Affect
Motivation
2 Equity Theory
2.1 Components of
20: How Perceptions and
Expectations Affect
Motivation
21: Equity Theory
22: Components of
Equity Theory
3 Expectancy Theory
3.1 Components of
Expectancy
27: Expectancy Theory
28: Components of
Expectancy Theory
29: Adding Expectancy
Ask students to think about
if /how their expectations
for this class (and whether
they have been met) have
How Rewards and Goals
Affect Motivation
4 Reinforcement Theory
31: How Rewards and
Goals Affect Motivation
32: Reinforcement
4.1 Components of
Reinforcement
Theory
4.2 Schedules for
Theory
33: Reinforcement
Theory
5 Goal Setting Theory
Theory
39: Goal-Setting Theory
6 Motivating with the
43: Motivating with the
Social Escapes
The theories in the chapter
Conclusion
Preview
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.
• Bring book.
Warm Up
Begin Chapter 13 by asking students, “What kinds of things motivate people?”
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
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 3-4 students each and explain this scenario: Jaako
Lecture on How Perceptions and Expectations Affect Motivation (Sections 2 & 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.
Present How Rewards and Goals Affect Motivation (Sections 4 & 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
individual items.
Review the chapter by presenting Motivating with the Integrated Model (Section 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?
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Conclusion
Preview
Assignments:
2. If you have finished covering Chapter 13, assign students to review Chapter 13 and
read the next chapter on your syllabus.
Remind students about any upcoming events.
Assignment with Teaching Tips and Solutions
Case Assignment – What Would You Do?
[insert wwyd text]
What Really Happened? – Solution
SAS
In the opening 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 web site traffic, to credit
cards replacing cash, to genome sequencing to sentiment analysis (analyzing every tweet, blog, and
steps SAS’s founder and CEO Jim Goodnight to address these challenges.
With competition intensifying, SAS is shortening product development cycle from 24 to 36 months to 12 to
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% and a 22% average turnover rate
in the software industry. That’s why Google gave all of its employees a 10% raise and a $1,000 bonus.
So, the first step in maintaining your competitiveness is figuring out what motivates people to join a
company and how SAS can satisfy employees needs better than others.
Motivation is the set of forces that initiates, directs, and makes people persist in their efforts over time
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Consequently, the first step in SAS’s 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
However, because of the variety of lower-order needs that must be met in today’s work force, SAS
doesn’t stop there. There’s also the SAS health care center 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,
While it might seem so, SAS doesn’t say yes to every perk proposed by the HR department and its
employees. Furthermore, while it offers these perks to make its employees happy, SAS offers them
because they also benefit the company. As CEO Goodnight says, “It turns out that doing the right thing,
treating people right, is also the right thing for the company.” SAS uses three criteria when deciding what
kind of benefits to offer its employees. Do they fit the SAS culture, which is conservative, yet quirky and
independent? Would the benefit have a positive effect on a large number of SAS employees and
families? Finally, would the cost of providing the benefit match the value that SAS’s employee place on
it?
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 employee’s needs. Since
Another way for SAS to motivate employees to work hard is by linking rewards to performance.
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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,
and perform their jobs well, and stay with the organization.
Indeed, SAS’s extrinsic rewards are so good that few people leave. SAS employees typically get a
Likewise, SAS works hard to make sure its employees are paid current market wages. For instance, it
uses its SAS products and tools to systematically compare the turnover rates and salaries of people in
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.”
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%, are SAS’s
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
Google’s software engineers a job, Google counter offered with a 15% raise, a $500,000 cash bonus to
stay one year, and four times the stock benefits. But, the engineer still left! How critical is retaining
talent? According to Patrick Pichette, Google’s chief financial officer, “We strongly believe that the
difference between the winners and the losers in our industry will be to a large extent determined by who
can continue to attract and retain the very best people.” Employee recruiter Paul Daversa agrees, saying,
“Google is an attraction and training ground for incredible talent. The question is: Can Google fill up on
talent as fast as it’s losing it?”
If Google is challenged to keep its best people, then you’d think SAS would be, too. But, other than
their locations, there’s one key difference between these companies. Google is publically owned, and can
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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
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% rate of turnover most years. That’s 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
While competitive extrinsic rewards such as pay, benefits, and bonus 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
This is also something at which SAS excels. Jeffrey Chambers, SAS’s 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.”
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Says CEO Goodnight, “I believe management must trust the people who work for them. You have to
treat people like they make a difference. And if you do, they will.”
Self-Assessment
WHAT DO YOU NEED?
When designing motivational packages, it is helpful for managers to know what exactly motivates
employees. But that kind of information can be hard to obtain. When using this assessment with your
class, tell students to think of a job they have had, a job they have applied for, or a job that they want or
expect to have. The assessment itself is directed to current employees, so students may have some
difficulty extrapolating their current circumstances to the items in the inventory.
In-Class Use
Have students open their books to page 524 of the text and give them 5 to 7 minutes to complete the
inventory. Use the Self-Assessment PowerPoint slides and have students raise their hands as you read off
Scoring
The overall assessment is divided into three subscales that relate to existence, relatedness, and growth
needs. Once students calculate their raw scores for these subscales, however, they will want to know what
they mean. Here’s what you can tell them:
Your total for (A) relates to what Alderfer’s theory calls existence needs. The higher your score for
questions in set A, the more likely you are to be motivated by higher pay and fringe benefits.
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advancement, and autonomy. A high score also suggests that you are more motivated by your perception
of advancement opportunities and personal growth.
Researchers who used this assessment found that, generally speaking, people motivated by growth
Management Decision
WHY WON’T THEY TAKE A BREAK?
Purpose
The purpose of this case is to have students think about how they would motivate employees to do
something that may seem unconventional––in this case, taking vacation days.
Setting It Up
You can introduce the case by asking students if they would ever work for a company that didn’t offer
paid vacation days. Why, do they think, vacation days are important for employees and the company as a
whole?
Questions
1. Which motivation theory(s) do you think would help communicate the importance of vacation time to
your employees?
Students’ responses will vary, but they should clearly articulate the principles of each motivational
theory, and discuss why they feel that it is the best for motivating workers to take vacation time.
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2. How would you convince your employees that working less hours, not more, is more beneficial for
them and the company?
There are a number of ways that managers can show employees that taking vacation time is important
for both the employees and the company. According to Maslow’s Hierarchy of Needs, every person
has physical or psychological requirements that must be met to ensure survival and well being.
Management Team Decision
READY FOR FOOTBALL?
Purpose
The purpose of this case is to have students think about how they would motivate employees to do
something that may seem unconventional––in this case, taking vacation days.
Setting It Up
You can introduce the case by asking students if they would ever work for a company that didn’t offer
paid vacation days. Why, do they think, vacation days are important for employees and the company as a
whole?
Questions
1. Which motivation theory(s) do you think would help communicate the importance of vacation time to
your employees?
Students’ responses will vary, but they should clearly articulate the principles of each motivational
theory, and discuss why they feel that it is the best for motivating workers to take vacation time.