Chapter 13 – Motivating for Performance
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chapter
Motivating for Performance
Learning Objectives 2
Key Student Questions 3
Class Roadmap 5
Bottom Line 15
Social Enterprise 16
Lecturettes 17
CHAPTER CONTENTS
Chapter 13 – Motivating for Performance
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1 Identify the kinds of behaviors managers need to motivate in
people.
2 List principles for setting goals that motivate employees.
3 Summarize how to reward good performance effectively.
LEARNING OBJECTIVES
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The concepts that students typically find difficult in this chapter include:
• Differences between job enlargement, job enrichment, and job rotation.
Students are also likely to ask very situation-specific questions about motivation, including:
1. “When a supervisor is given the task of supervising remote employees, those em-
ployees are usually fairly independent and self-sufficient; therefore, they are not
likely to require a supervisor monitoring their every move. However, remote em-
Answers to Student Questions
1. When employees are independent and self-sufficient, it is particularly important to pay attention to
intrinsic motivators – the nature of the work they are given, opportunities for growth and recognition,
2. When answering this question, talk about both expectancy theory and pay-for-performance plans.
The issue here is not necessarily knowing how much others have made, but rather, knowing how
compensation is linked to performance. For that reason, managers have to be very explicit about the
compensation plan, which may include showing them a merit pay matrix such as the following:
3. Again, this is a question that can best be answered by explaining how to use intrinsic, in addition to
Chapter 13 – Motivating for Performance
Management in Action
What Makes SAS a Great Place to Work?
Every year since the Great Place to Work Institute started compiling its list of the 100 Best
Companies to Work For, published in Fortune magazine, SAS has been on the list. SAS (named
after its first product, Statistical Analysis Software), the world’s leader in data analytics software,
LO 1: Identify the kinds of behaviors managers need to motivate in people.
A. Motivation refers to forces that energize, direct, and sustain a person’s efforts.
B. The company must motivate people to (Exhibit 13.1):
1. Join the organization
E.G.
Use Example 13.1 – Motivation here
LO 2: List principles for setting goals that motivate employees.
C. Goal-setting theory states that people have conscious goals that energize them and direct their
D. Goals That Motivate
CLASS ROADMAP
I. Motivating for Performance
Chapter 13 – Motivating for Performance
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3. Goals should be specific, quantifiable, and measurable.
E.G.
Use Example 13.2 – Goal setting here
E. Stretch Goals
1. Stretch goals – Targets that are exceptionally demanding, even sometimes thought to be im-
possible
2. Two types of stretch goals
F. Limitations of Goal Setting
1. It is important that a single productivity goal not be established if there are other important
G. Set Your Own Goals
1. Personal statement of purpose comprised of:
a. distant, inspiring vision
b. a mid-distant goal along the way
c. near-term objectives to start working on immediately
LO 3: Summarize how to reward good performance properly.
B. Reinforcers are positive consequences that motivate behavior.
C. Organizational behavior modification (OB Mod) is the application of reinforcement theory in
organizational settings.
1. Four key consequences of behavior either encourage or discourage people’s behavior: (Ex-
hibit 13.3)
II. Reinforcing Performance
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d. Extinction is withdrawing or failing to provide a reinforcing consequence.
Teaching Tip:
Students need multiple examples to understand the consequences of behavior described above, especially negative
reinforcement. You might try starting with examples of dog training – giving treats when the dog does something
E.G.
Use Example 13.3 – Positive reinforcement here
D. (Mis)Managing Rewards and Punishments
1. Identify which kinds of behaviors to reinforce, and those to discourage (Exhibit 13.4)
2. Reward system has to support firm’s strategy
E. Managing Mistakes
1. Managers who overuse punishment or use it inappropriately create a climate of fear in the
workplace.
a. Causes people to focus on short term
b. Causes people to focus on themselves, not others
2. To manage mistakes effectively
a. Recognize that everyone makes mistakes
F. Providing Feedback
1. Managers should:
2. Possible sources of feedback
3. Managers should actively seek feedback and avoid negative emotions when receiving it.
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LO 4: Describe the key beliefs that affect people’s motivation.
A. Expectancy theory is a theory proposing that people will behave based on their perceived likeli-
hood that their effort will lead to a certain outcome and on how highly they value that outcome.
(Exhibit 13.5)
1. The effort-to–performance link is used to explain behavior.
a. The first belief, expectancy, is people’s perceived likelihood that their efforts will enable
them to successfully attain their performance goals
2. The performance-to-outcome line is used to predict behavior.
comes.
E.G.
Use Example 13.4 – Using expectancy theory here
Management in Action –
Progress Report
SAS’s values are based on founder James Goodnight’s own experience of the joy of creating something
that benefits others. SAS’s website describes the culture as one that “rewards innovation, encourages em-
ployees to try new things and yet doesn’t penalize them for taking chances.” In this work environment,
employees give their all to carry out projects. The respectful environment also helps SAS build support
for new initiatives such as the Hub, SAS’s internal networking site.
• What kinds of reinforcement and feedback do you think would be most effective with SAS employees?
Reinforcement should match what employees find desirable or undesirable. Most SAS employees are
• How should SAS’s managers apply the implications of expectancy theory) to keep the company innova-
tive?
III. Performance-Related Beliefs
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LO 5: Discuss ways in which people’s individual needs affect their behavior.
A. Content theories indicate the kinds of needs that people want to satisfy.
1. Maslow’s Need Hierarchy –is a conception of human needs organizing needs into a hierar-
chy of five major types
a. Specifies his conception of people satisfying their needs in a specified order, from bottom
to top: (Exhibit 13.6)
i. Physiological (food, water, sex, and shelter)
b. Concerns about Maslow’s theory:
i. Maslow’s theory is a simplistic and not altogether accurate theory of human motiva-
tion.
E.G.
Use Example 13.5 – Job perception and motivation here
2. Alderfer’s ERG Theory– a human needs theory postulating that people have three basic sets
of needs that can operate simultaneously
a. Alderfer’s ERG Theory postulates three sets of needs:
Multiple Generations at Work
IV. Understanding People’s Needs
Chapter 13 – Motivating for Performance
Millennials Want to Fulfill Higher Order Needs
A recent survey found that 60 percent of Millennials leave their organizations in less than three years.
David Glickman, CEO of mobile carrier Ultra Mobile, believes that Millennials are motivated by jobs that
fulfill their higher order needs. Eighty percent of Ultra Mobile’s 300 plus employees and contractors are
Millennials. Over the past two years, Ultra Mobile has grown rapidly to over $100 million in sales reve-
nue and reports 100 percent retention. Glickman suggests that many Baby Boomers at younger ages were
willing to accept jobs that fulfilled basic needs like a constant paycheck, modest home, and so forth.
However, for Millenials, Glickman has the following tips: focus on results, not time in the office; make
your organization a cool place to work; and leverage Millenials’ passion.
3. McClelland’s Needs
a. The most important needs for managers, according to McClelland are:
i. The need for achievement is characterized by a strong orientation toward accom-
B. Need theories: International perspectives – profoundly important in the United States, but not
universally important.
1. Managers in the United States care most strongly about achievement, esteem, and self–
actualization whereas managers in Greece and Japan are motivated more by security.
2. Social needs are most important in Sweden, Norway, and Denmark.
LO 6: Define ways to create jobs that motivate.
A. Types of motivators
B. Job rotation, Enlargement, and Enrichment
1. Job rotation is changing from one routine task to another to alleviate boredom.
V. Designing Motivating Jobs
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C. Herzberg’s Two-Factor Theory– involves describing two factors affecting people’s work motiva-
tion and satisfaction
1. Hygiene factors are characteristics of the workplace. They include:
a. Company policies
b. Working conditions
c. Pay
d. Co-workers
e. Supervision
2. Motivators are factors that make a job more motivating. They include:
a. The nature of the work itself
3. Contributions of Herzberg’s theory
a. highlights distinction between extrinsic rewards (hygiene factors) and intrinsic rewards
E.G.
Use Example 13.6 – Motivating jobs here
D. The Hackman and Oldham Model of Job Design. (Exhibit 13.8)
1. Psychological states occur when people are working on enriched jobs, that is, jobs that offer
the following five core job dimensions:
2. Growth need strength is the degree to which individuals want personal and psychological
development.
E. Empowerment-the process of sharing power with employees, thereby enhancing their confidence
in their ability to perform their jobs and their belief that they are influential contributors to the or-
ganization.
1. One disadvantage is that managers undermine it by sending mixed messages.
2. Empowerment encourages the following beliefs among employees:
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LO 7: Summarize how people assess fairness and how to achieve fairness.
A. Equity theory proposes that when people assess how fairly they are treated, they consider two key
factors:
1. Outcomes
E.G.
Use Example 13.7 – Equity here
B. Assessing Equity
1. People assess equity by comparing the ratio of their own outcomes to inputs against the out-
come-to-input ratio of some comparison person (Exhibit 13.9).
C. Restoring Equity
1. People who feel inequitably treated and dissatisfied are motivated to do something to restore
equity. This involves at least one of the following:
D. Procedural justice– using fair process in decision-making and making sure others know that the
process was as fair as possible.
1. To increase likelihood that process will be seen as fair:
a. make it open and visible,
VI. Achieving Fairness
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LO 8: Identify the causes and consequences of a satisfied workforce.
A. Job dissatisfaction creates a workforce that is more likely to exhibit:
1. Higher turnover
2. Higher absenteeism
B. Quality of work life (QWL) programs designed to create a workplace that enhances employee
well-being and satisfaction.
1. QWL has eight categories:
a. Adequate and fair compensation.
E.G.
Use Example 13.8 – QWL programs here
C. Psychological Contracts – a set of perceptions of what employees owe their employers, and what
their employers owe them.
Management in Action –
Onward
Evidence that SAS is motivating successfully include low employee turnover, a flood of job applicants,
and steady growth in revenues. Employees believe that their contributions are valued because SAS re-
• How does SAS make its jobs motivating? What other principles of job design could enhance motivation
at SAS?
VII. Job Satisfaction
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is valued, and CEO James Goodnight takes employees questions at monthly breakfast meetings.
• What elements of SAS’s approach to motivation do you think would contribute most to job satisfaction?
Why?
Students’ opinions and answers will vary, most likely according to what they have found motivational in
Chapter 13 – Motivating for Performance
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p. 441: What is one goal you have set for yourself as a student? If you haven’t set any goals, start by set-
ting one now for this course.
p. 446: What is rewarding about feedback from your manager?
Answers will vary. Feedback can represent attention that is emotionally gratifying or, if the employee per-
p. 454: Why might an employee be more innovative when a job is intrinsically rewarding?
p. 457: Name two ways to ensure that empowerment is done right.
p. 460: In an organization with a strategy focused on low cost, is employee satisfaction important? Why
or why not?
Yes. Without satisfaction, the organization is likely to encounter higher absenteeism and turnover, more
BOTTOM LINE
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Giving Veterans a Renewed Sense of Purpose
1. Of those veterans who would like to work for Team Rubicon, what types of rewards
are likely to keep them motivated: extrinsic, intrinsic, or both?
Intrinsic rewards are likely to keep these veterans motivated. As the case describes, help-
2. To what degree do you think Team Rubicon will make a positive impact on natural
disaster victims? Explain.
SOCIAL ENTERPRISE
Chapter 13 – Motivating for Performance
LECTURETTE 13.1: Social Character and Locus of Control
SOCIAL CHARACTER AND PERFORMANCE
1. A person’s social character can be a critical ingredient in the motivation-performance-reward process
that must be maximized by management.
2. The popular “social character” theory contends that people can be divided into two distinct categories
based on the nature of their social characters.
3. One’s social character, or relative inner-directiveness or other-directiveness, influences one’s percep-
tions of motivational factors, personal behavior, performance, performance evaluation, and rewards.
4. Other-directed people, who look to others for behavioral standards, are found to perform best in those
decision-making situations that feature group interactions, such as in-group brainstorming sessions.
5. Inner-directed people, who look to their own behavioral standards, are found to perform best in those
6. Inner-directed employees, often found in such positions as accounting, engineering, and information
systems, have unique attitudes toward a variety of work factors, and they tend to:
➢ Be dissatisfied with pay as a motivator.
7. Other-directed employees, often found in such positions as marketing, human resource management,
public relations, and public service, also have unique attitudes toward a variety of work factors, and
they tend to:
➢ Be satisfied with pay as a motivator.
LOCUS OF CONTROL AND PERFORMANCE
1. More recently, a similar social character concept has been developed called locus of control.
2. Locus of control is the degree to which a person believes that his or her behavior has a direct bearing
on the consequences of that behavior.
LECTURETTES