Chapter 4

1. Chapter 4 Motivating Self and Others

2. What is Motivation? Motivation • The processes that account for an individual’s intensity, direction, andpersistence of effort toward attaining a goal • Intensity: how hard a person tries • Direction: where effort is channeled • Persistence: how long effort is maintained

3. Theory X and Theory Y • Theory X • The assumption that employees dislike work, will attempt to avoid it, and must be coerced, controlled, or threatened with punishment if they are to perform. • Theory Y • The assumption that employees like work, are creative, seek responsibility, and can exercise self-direction and self-control.

4. Motivators • Intrinsic • A person’s internal desire to do something, due to such things as interest, challenge, and personal satisfaction. • Extrinsic • Motivation that comes from outside the person, such as pay, bonuses, and other tangible rewards.

5. Needs Theories of Motivation Basic idea: • Individuals have needs that, when unsatisfied, will result in motivation • Maslow’s hierarchy of needs • Herzberg’s two factor theory (motivation-hygiene theory) • Alderfer’s ERG theory • McClelland’s theory of needs Less Important

6. Self- actualization Esteem Social Safety Physiological Maslow’s Hierarchy of Needs

7. Herzberg’s Motivation-Hygiene Theory • Hygiene factors - necessary, but not sufficient, for healthy adjustment • Extrinsic factors; context of work • Company policy and administration • Unhappy relationship with employee's supervisor • Poor interpersonal relations with one's peers • Poor working conditions These needs must be met so employee is not dissatisfied – but they do not necessarily lead to satisfaction

8. Herzberg’s Motivation-Hygiene Theory • Motivators - the sources of satisfaction • Intrinsic factors; content of work • Achievement • Recognition • Challenging, varied or interesting work • Responsibility • Advancement

9. Contrasting Views of Satisfaction and Dissatisfaction Traditional view Satisfaction Dissatisfaction Herzberg's view Intrinsic Motivators No Satisfaction Satisfaction Extrinsic Hygiene Factors No dissatisfaction Dissatisfaction

10. Alderfer’s ERG Theory • Existence • Concerned with providing basic material existence requirements • Relatedness • Desire for maintaining important interpersonal relationships • Growth • Intrinsic desire for personal development

11. McClelland’s Theory of Needs • Need for Achievement • The drive to excel, to achieve in relation to a set of standards, to strive to succeed • Need for Power • The need to make others behave in a way that they would not have behaved otherwise • Need for Affiliation • The desire for friendly and close interpersonal relationships

12. Alderfer Herzberg Maslow McClelland Self-Actualization Need for Achievement Growth Motivators Esteem Need for Power Relatedness Affiliation Need for Affiliation Factors Security Existence Physiological Summarizing the Various Needs Theories Hygiene

13. Summary: Hierarchy of Needs • Maslow: Argues that lower-order needs must be satisfied before one progresses to higher-order needs. • Herzberg: Hygiene factors must be met if person is not to be dissatisfied. They will not lead to satisfaction, however. Motivators lead to satisfaction.

14. Summary: Impact of Theory • Maslow: Enjoys wide recognition among practising managers. Most managers are familiar with it. • Herzberg: The popularity of giving workers greater responsibility for planning and controlling their work can be attributed to his findings. Shows that more than one need may operate at the same time

15. Process Theories of Motivation • Look at the actual process of motivation • Expectancy theory • Goal-setting theory

16. Expectancy Theory An employee will be motivated to exert a high level of effort when he/she believes: • That effort will lead to good performance • That performance will lead to organizational rewards • The rewards will satisfy the employee’s personal goals

17. Expectancy Relationships • The theory focuses on three relationships: • Effort-performance relationship • The perceived probability that exerting a given amount of effort will lead to performance. • Performance-reward relationship • The degree to which the individual believes that performing at a particular level will lead to a desired outcome. • Rewards-personal goals relationship • The degree to which organizational rewards satisfy an individual’s personal goals or needs and are attractive to the individual.

18. How Does Expectancy Theory Work? My professor offers me $1 million if I memorize the textbook by tomorrow morning. Expectancy Instrumentality Valence Effort Performance Link Performance Rewards Link Rewards Personal Goals Link No matter how much effort My professor does not look There are a lot of wonderful things I put in, probably not possible like someone who has $1 million I could do with $1 million to memorize the text in 24 hours E=0 I=0 V=1 Conclusion: Though I value the reward, I will not be motivated to do this task.

19. Steps to Increasing Motivation, Using Expectancy Theory Improving Instrumentality Improving Expectancy Improving Valence Improve the ability of the Make sure that the reward is ’ Increase the individual s belief that meaningful to the individual individual to perform performance will lead to reward

20. Improving Instrumentality Improving Expectancy Improving Valence Increase the individual ’ s belief that Improve the ability of the Make sure that the reward is performance will lead to reward individual to perform meaningful to the individual • Observe and recognize performance • Make sure employees have skills • Ask employees what rewards they • Deliver rewards as promised for the task value • Indicate to employees how previous • Provide training • Give rewards that are valued good performance led to greater • Assign reasonable tasks and goals rewards Steps to Increasing Motivation, Using Expectancy Theory

21. Goal-Setting Theory • The theory that specific and difficult goals lead to higher performance. • Goals tell an employee what needs to be done and how much effort will need to be expended. • Specific goals increase performance • Difficult goals, when accepted, result in higher performance than do easy goals • Feedback leads to higher performance than does nonfeedback. • Specific hard goals produce a higher level of output than does the generalized goal of “do your best.” • The specificity of the goal itself acts as an internal stimulus.

22. Management by Objectives • A program that encompasses • Specific goals • Participative decision-making • Explicit time period • Performance feedback

23. Summary so far … • What is motivation? • Needs theory of motivation • Maslow’s Hierarchy • Motivation-Hygiene Theory • Process Theories of Motivation • Expectancy Theory • Goal-setting Theory • Management by Objectives

24. For next class • Read Stella McCarthy Case and be prepared to discuss in class on Wednesday