Instructor Resource
Scandura, Essentials of Organizational Behavior, 3e
SAGE Publishing, 2022
Lecture Notes
Chapter 9: Motivation Applications
Learning Objectives
9.1: Demonstrate understanding of organizational behavior modification (OB mod) by
providing an example.
9.2: Describe the four steps in the modeling process articulated in social learning theory.
9.3: Compare and contrast intrinsic and extrinsic rewards.
Chapter Summary
Chapter summary here.
Annotated Chapter Outline
I. The Meaning of Money
II. Reinforcement Theory
A. Law of effect: States that past actions that led to positive outcomes tend to be
repeated, whereas past actions that led to negative outcomes will diminish
C. Reinforcers
i. Reinforcers: Factors that strengthen or increase the behavior it follows
a. Positive reinforcement: a favorable event or outcome presented after
the behavior (such as praise or a bonus)
Instructor Resource
Scandura, Essentials of Organizational Behavior, 3e
SAGE Publishing, 2022
b. Negative reinforcement: removal of an unpleasant event or outcome
after the display of a behavior (such as ceasing criticism after an
improvement in behavior)
E. See Figure 9.1 Contingencies of Reinforcement.
F. Schedules of Reinforcement
i. Schedules of reinforcement: A pattern of frequencies in the application of
reward and punishment
a. Continuous: A behavior is rewarded whenever a behavior occurs.
Not often seen in organizations, but may be useful during learning
processes.
ii. Four possible schedules of partial reinforcement:
a. See Figure 9.2 Schedules of Partial Reinforcement.
b. Fixed-interval schedules: first response is rewarded only after a
specified amount of time has elapsed; causes high amount of
responding near the end of the interval.
c. Variable-interval schedules: response is rewarded after an
unpredictable (random) amount of time has passed; produces a
slow, steady rate of response.
Instructor Resource
Scandura, Essentials of Organizational Behavior, 3e
SAGE Publishing, 2022
iii. Variable-ratio schedules produce the most persistent, long-term effects on
behavior.
iv. Receiving awards randomly tends to increase effort until the reward is
received.
G. Organizational Behavior Modification
i. Organizational behavior modification (OB mod): The application of
reinforcement theory in organizational behavior (OB)
a. Increases performance and reduces absenteeism
iii. After ABC analysis, leaders should develop an action plan to apply
reinforcement theory strategies.
a. After implementation, evaluate the plan comparing behavior to the
baseline.
b. Follow-up is necessary to adjust the intervention as needed.
iv. Example of applied OB mod:
a. See Figure 9.4 Applied Behavior Modification Example.
v. OB mod may increase task performance by 17%.
a. Results much stronger in manufacturing than service organizations.
III. Social Learning Theory
A. Social learning theory: The belief that operant conditioning cannot explain all of
the ways a person can learn; introduced a social element to skill acquisition.
i. Observational learning: Known as modeling, describes the ways that
people learn by watching other people.
ii. External reinforcements are not the only factors influencing motivation;
intrinsic reinforcement is related to pride, satisfaction, and
accomplishment.
B. The Modeling Process
i. Four steps:
a. Attention: Person must be attentive to another’s behavior.
Instructor Resource
Scandura, Essentials of Organizational Behavior, 3e
SAGE Publishing, 2022
b. Retention: Information must be stored for future access.
c. Reproduction: Person must imitate the behavior they recall.
d. Motivation: Person must have motivation to imitate.
IV. Intrinsic Versus Extrinsic Rewards
A. Intrinsic motivation: When someone works on a task because they find it
interesting and gain satisfaction from the task itself.
D. Payment may undermine intrinsic motivation by introducing extrinsic rewards.
i. Rewards delivered immediately tend to increase, not decrease, intrinsic
motivation.
a. This is because immediate rewards create a perceptual fusion
between the activity and the reward.
E. Relationship Between Intrinsic and Extrinsic Rewards
i. Extrinsics in service of intrinsics: Refers to how extrinsic rewards may
support an employee’s sense of competence if they do not undermine
autonomy.
ii. Motivation-work cycle match: Understanding that innovation occurs in
phases, and intrinsic motivation may be more important during idea-
generation phase.
iii. Extrinsic motivation is complex:
a. Ranges from external regulation (reward and punishment) to
feelings of self-worth derived from job performance (introjected
regulation).
Instructor Resource
Scandura, Essentials of Organizational Behavior, 3e
SAGE Publishing, 2022
b. Identified regulation: employees realize the goals of the
organization are important.
c. Integrated regulation: the highest level of extrinsic motivation, in
which the employee identifies with the values and integrates them
automatically.
G. What Money Can and Cannot Do
i. Pros of money as a motivational tool:
a. Pay for high performance and overall high pay is related to high
return.
H. Pay Dispersion
i. Pay dispersion: System in which employees receive different levels of
rewards for individual efforts
a. Horizontal: between employees at the same level
b. Vertical: between employees at different levels
ii. Pay inequity: Unequal compensation systems
a. If pay inequity is attributed to discrimination, it may result in
litigation.
iv. Five evidence-based guidelines for money as a motivator:
a. Define and measure performance accurately
b. Make rewards contingent on performance
c. Reward employees in a timely manner
d. Maintain justice in the reward system
e. Use monetary and nonmonetary rewards
V. Performance Management
A. Sources of Performance Management Ratings
Instructor Resource
Scandura, Essentials of Organizational Behavior, 3e
SAGE Publishing, 2022
i. 360-degree performance appraisal: Input from a number of sources is
used to provide a more comprehensive view of an employee’s performance.
a. Feedback from higher management, peers (coworkers), the
employee’s own followers, and customers
objective feedback.
B. Performance Management Methods
i. Avoid rating traits that are not definitively related to actual performance
such as positive attitude
ii. Most organizations use a standard form to evaluate employee
performance.
a. Includes ratings for specific dimensions of performance
b. Typically on a graphic rating scale with multiple points along a
continuum
VI. Problems with Performance Reviews
A. Employee concerns:
i. Unfair process
ii. Subject to favoritism
iii. Perceive reviews as punitive
B. Biases in performance ratings:
i. Primacy effect
ii. Recency effect
average.
Instructor Resource
Scandura, Essentials of Organizational Behavior, 3e
SAGE Publishing, 2022
C. Some managers are reluctant to do performance appraisals, feeling they:
i. Offer little return for a significant investment
ii. Create face-to-face confrontation over difficult performance issues
iii. Highlight the inherent conflict between a supervisors two roles:
a. Evaluator
F. Best compensation systems are mixed or aggregate and include:
i. Individual merit pay
ii. Group incentives
iii. Gain sharing
G. Perceptual biases may be avoided by rewarding for results rather than behaviors:
i. Profit-sharing plans: Employee bonuses are based upon reaching a
financial target.
a. Stock options: A variation where employees are given stock
options as part of their compensation package
b. Gain-sharing plans: A variation where compensation is tied to
unit-level performance
H. According to Jose Luis Romero, growth means:
i. Helping employees possess the needed skill levels to achieve desired
performance
ii. Helping employees develop the ability to exceed desired performance and
move to greater levels of more complex performance.
I. Discussions of growth and development should be held independently of salary
increases.
Instructor Resource
Scandura, Essentials of Organizational Behavior, 3e
SAGE Publishing, 2022
VII. Feedback Seeking
A. Feedback seeking: The practice of actively looking for feedback
B. Motives for feedback seeking:
i. Ego or image defense
ii. Enhancing their image in the eyes of others
D. Seeking negative feedback does improve an employee’s image, unless the seeker
is a poor performer.
E. Seeking positive feedback can be detrimental to a leader’s image to subordinates.
VIII. Leadership Implications: Motivating with Rewards
A. All employees need to feel cared for and supported.
i. Employee opinions on an organization’s performance appraisal procedures
should be sought and considered.
a. Employee voice during performance management session positively
influences the reactions to receiving negative feedback.
B. Four future-focused statement ratings to highlight differences among individuals
and reliably measure performance:
a. Measures teamwork ability
iv. This person is at risk for low performance.
a. Identifies problems that might harm a customer
v. This person is ready for promotion today.