A.Motivation & Theories of Motivation… · PPT file · Web view · 2014-08-18Howard Schultz...
Transcript of A.Motivation & Theories of Motivation… · PPT file · Web view · 2014-08-18Howard Schultz...
MOTIVATION Academic Materials for MBA
Compiled by:Gopal Salim
056-7123960
MOTIVATION
Starbucks Corporation
FoundedPike Place Market in Seattle, Washington (March 30, 1971 (1971-03-30))
Founder(s)Jerry BaldwinGordon BowkerZev Siegl
Headquarters Seattle, Washington, U.S.Number of locations 17,009 (FY 2010)Area served 50 countries
Key peopleHoward Schultz(Chairman, President and CEO)
Motivation - Meaning• The word ‘Motivation’ is derived from the Latin Term
‘Movere’ which means ‘Move’.• Motivation is “the processes that account for an individual’s
INTENSITY, DIRECTION and PERSISTENCE of effort towards attaining a goal” ( Stephen P. Robbins)
• Motivation means to move. It includes three common characteristics:
1. It concerns with what activates human behavior2. It involves what directs this behavior towards a particular
goal.3. Motivation concerns how this behavior is sustained or
supported.
INTENSITY How hard a person tries.
DIRECTION Orientation towards goals
PERSISTENCE How long can maintain effort
• Motivation has got three common characteristics:1. It concerns with what activates human
behavior2. It involves what directs this behavior towards a particular goal3. Motivation concerns how this behavior is
sustained (supported)
Motivation ProcessNeed Drive/Goal Directed
BehaviorGoal
Incentive/Relief
BASIC CHARACTERISTICS OF WORK MOTIVATION
• Direction of behavior & is psychological• Level of effort• Level of persistence• Intrinsic and extrinsic motivation• Dynamic and situational• Not easily observed phenomenon• Motivation is goal oriented process• Motivation is influenced by social and cultural
norms
THEORIES OF MOTIVATION• Theories categorized into two groups.• CONTENT THEORIES
– McGregor’s Theory X and Theory Y– Maslow’s Hierarchy of Needs Theory– ERG Theory– Two Factor Theory– McClelland’s Achievement Motivation Theory
• PROCESS THEORIES– Expectancy Theory– Equity Theory– Porter & Lawler Theory
MASLOW’S HIERARCHY OF NEEDS
• People are not merely controlled by mechanical forces (stimuli and reinforcement) or unconscious instinctual impulses of psychoanalysis.
PHYSIOLOGICAL NEEDS
SAFETY NEEDS
LOVE, AFFECTION & BELONGINGNESS (SOCIAL)
ESTEEM
SELF ACTUALIZATION
BASIC NEEDS ( PAY )
SECURITY NEEDS ( Seniority plan, health insuranceemployee assistance plan, pension etc)
SOCIAL NEEDS ( Formal or informal workGroups, Teams etc)
STATUS ( Titles, symbols, Promotion etc)
SELF ACTUALIZATION(Personal Growth,
realization of potential)
LOW
ER L
EVEL
NEE
DSHI
GHER
LEV
EL N
EEDS
ERG THEORY ( Alderfer 1972)
EXISTENCE(Survival)
RELATEDNESS(Interpersonal social
relationship)
GROWTH(Intrinsic Desire for
Personal Development)
2.ERG THEORY &MASLOW’S THEORY
EXISTENCE(Physiological Needs & Safety Needs)
RELATEDNESSSocial Needs & Esteem Needs
GROWTHExternal Esteem &Self Actualization
Difference Between ERG Theory and Maslow’s Theory
• More than one need may be operative at the same time
• If the gratification of a higher level need is stifled, the desire to satisfy a lower level need increases
• ERG Theory does not assume that there exists a rigid hierarchy. A person can be working on growth even though existence or related needs are unsatisfied or all three need categories could be operating at the same time
3.HERZBERG’S TWO FACTOR THEORY
• According to Herzberg , the factors leading to job satisfaction are separate and distinct from those that lead to job dissatisfaction.
• He makes the following contention about satisfaction and dissatisfaction.
Contrasting Views of Satisfaction and Dissatisfaction
SATISFACTION DISSATISFACTION
SATISFACTION NO SATISFACTION
NO DISSATISFACTION DISSATISFACTION
TRADITIONAL VIEW
HERZBERG VIEW
Contrasting Views of Satisfaction and Dissatisfaction
DISSATISFACTION & DEMOTIVATION
EMPLOYEE NOT DISSATISFIED, BUT NOT MOTIVATED
POSITIVE SATISFACTION &
MOTIVATION
Major Components of Herzberg Two Factor Theory
EXTRINSIC/HYGIENEFACTORS
Company Policy & Admn.Relationship with supervisorWorking conditionsPersonal LifeStatusSecuritySupervision etc
INTRINSIC/MOTIVATORSFACTORS
AchievementRecognitionWork itselfResponsibilityAdvancementGrowth
• Motivators are associated with long term positive effects in job performance
• Hygiene factors consistently produced only short term changes in job attitude and performance
• Satisfiers describe a person’s relationship with what he or she does and it relates to the tasks being performed
• Dissatisfiers have to do with a person’s relationship to the context or environment in which he or she performs the job
3.McClelland's Theory
OfNeeds
McClelland's theory is based on TAT McClelland identified three themes on such
TAT stories, with each corresponding to an underlying need that he believes is important for understanding individual behavior.
These needs include: Need for Achievement (nAch) Need for Power (nPow) Need for Affiliation (nAff)
nAch (High n Achievers)
• nAch• Derive satisfaction
from reaching goals• Feeling of successful
task accomplishment• Immediate feedback
on performance• Moderate risk takers• Work independently
High n Achievers
• Joint Walt Disney in 1996
• Made turnaround for Disney’s ABC Family channel
• Became President of ABC Television in 2004
High n Achievers
• Indra Krishnamurthy Nooyi
• CEO of Pepsi
nPow (High n Powerful)• nPow• Derives satisfaction from
his or her ability to control others
• Actual achievement of goal is not very important but the means are of primary importance
• Derive satisfaction from being in positions of influence and control
nPow (High n Powerful)
nAff (High n Affiliated)
• nAff• Satisfaction from
social and interpersonal activities
• Strong interpersonal ties and to get close to people psychologically
nAff (High n Affiliated)Muhammad Yunus : Micro Banking
: BangladeshNelson Mandela : South Africa
Assumptions of the theory• Individuals with a high need to achieve prefer job
situations with personal responsibility, feedback, moderate risk
• A high need to achieve does not necessarily leads to being a good manager, especially in large organizations as they are more interested in how well they do personally
• The needs for affiliation and power tend to be closely related to managerial success. The best managers are high in their need for power and low in their need for affiliation
4. Goal Setting Theory (Locke & Latham 1990)
• Challenging goals produce a higher level of output than do the generalized goals
• More difficult the goal, the higher the level of performance
• People do well when they get feedback• Goal serves as a motivator, because it causes
people to compare their present capacity to perform with that required to succeed at the goal
Goal Setting Theory
• There are four contingencies in goal setting theory:
1. Goal Commitment2. Adequate self-efficacy3. Task characteristics4. National culture ( North American)
5. EQUITY THEORY (Adams)
• Employees make comparisons of their job inputs and outcomes relative to those of others
• If an individual feels that his input-output is equal to that of others, a state of equity exists
• He will perceive the situation as fair• If ratio is unequal, the individual experience
inequity
Referent comparisons used by employees
• SELF-INSIDE• An employee’s experiences in a different position inside his or her
current organization• SELF-OUTSIDE• An employee’s experiences in a situation or position outside his or
her current organization• OTHER-INSIDE• Another individual or group of individuals inside the employee’s
organization• OTHER-OUTSIDE• Another individual or group of individuals outside the employee’s
organization
Crucial Issues in Equity Theory
• Employees with short tenure in their current organizations tend to have little information about others
• Employees with long tenure rely more heavily on co-workers for comparison
• Upper level employees will make more other-outside comparisons
Choice in Inequity
• Change their inputs• Change their outcomes• Distort perceptions of self• Distort perceptions of others• Choose a different referent• Leave the field
Organizational Justice
1. DISTRIBUTIVE JUSTICE• The perceived fairness of the way rewards are
distributed among people2. PROCEDURAL JUSTICE• Perceptions of the fairness of the procedures used to
determine outcomes3. INTERACTIONAL JUSTICE• The perceived fairness of the interpersonal treatment
used to determine organizational outcomes
6. EXPECTANCY THEORY – Victor H. Vroom
VALENCY X EXPECTANCY
MOTIVATION
ACTION
GOAL ACHIEVEMENT
SATISFACTION
Determinants of Motivation• EXPECTANCY• The belief that one’s efforts will positively influence one’s
performance• INSTRUMENTALITY• An individual’s beliefs regarding the likelihood of being
rewarded in accord with his or her own level of performance• VALENCE• The value a person places on the rewards he or she expects to
receive from an organization• OTHER DETERMINANTS• Skills, abilities, role perceptions, opportunity to perform etc
MOTIVATIONAL FORCE
EXPECTANCY
INSTRUMENTALLITIES
OUTCOME 1
OUTCOME 2
OUTCOME 1A
OUTCOME 1B
OUTCOME 2A
OUTCOME 2B
OUTCOME 2C
FIRST LEVEL OUTCOME
SECOND LEVEL OUTCOME
Key Relationships in Expectancy Theory
Individual Effort
Individual Performance
Organizational Rewards
Personal Goals
Three Key Relationships
• EFFORT – PERFORMANCE RELATIONSHIP• PERFORMANCE – REWARD RELATIONSHIP• REWARDS – PERSONAL GOALS RELATIONSHIP
PERFORMANCE FORMULA
• Performance of an employee is based on ABILITY, OPPORTUNITY AND MOTIVATION
• Therefore PERFORMANCE = f ( A X M X O )Where A is ability
M is motivationO is opportunity
PERFORMANCE IMPACT
ABILITY
MOTIVATION OPPORTUNITY
PERFORMANCE
Application of Motivation Theories
1. Goal Setting Goal setting is used to motivate staff in
organization The use of goal to motivate task
accomplishment draws on two primary attributes: (i) The Content of Goal and (ii) Level of Intensity in Working Towards it.
Application of Motivation Theories(i) Current Level of Difficulty Goal should be challenging enough to induce high levels of
effort So the managers should take this factor into consideration while
setting goals to the employees.(ii) Level of Intensity in Working Towards Goal There can be three ways in which goals can be set. They are:a. When goals are assigned by the management b. Where members are asked to participate in goal settingc. When members are told to do their best Studies prove that the first two methods are more effective in
motivating the people to achieve their targets and goals.
Goals IMPORTANCE OF GOALS Goals guide and direct behavior Goals serve as an organizing function Goals provide benchmarks Goals may define the basis for organizational design. LIMITATIONS OF GOAL SETTING If employees lack skill and ability, they may not be
able to achieve the goals When the employees are given complicated task, goal
setting fails
Goals
REACTION OF DISSATISFIED EMPLOYEES1. Job avoidance ( quitting)2. Work avoidance (absenteeism, arriving late or
leaving early)3. Psychological defenses ( alcohol, drug abuse
etc)4. Constructive protest (complaining)5. Defiance (Refusing to do what is asked)6. Aggression (theft or assault)
REWARD SYSTEM FOR HIGH PERFORMANCE
Reinforcement or reward system is the process of managing behavior or reshape behaviors by having a contingent consequence follows behavior
The ability of the reward to motivate individuals or a team of high performance depends on the following factors:
a. Availability of rewardsb. Timeliness of rewardsc. Performance contingency: Linkage between performance and
rewardsd. Durability of rewardse. Equity in providing rewardsf. Visibility of rewards