Chapter 13

Motivation and Performance

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The Nature of Motivation

Motivation– The psychological forces that determine

• The direction of a person’s behavior • A person’s level of effort• A person’s level of persistence

– Explains why people behave the way they do in organizations

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The Nature of Motivation

Intrinsically Motivated Behavior– Behavior that is performed for its own sake

Extrinsically Motivated Behavior– Behavior that is performed to:

• Acquire material or social rewards• Avoid punishment

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The Motivation Equation

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Maslow’s Hierarchy of NeedsSelf-Self-

actualizationactualizationRealize one’sRealize one’s full potentialfull potential

Use abilities Use abilities to the fullestto the fullest

EsteemEsteem Feel good Feel good about oneselfabout oneself

PromotionsPromotions and recognitionand recognition

BelongingnessBelongingness Social Social interaction, loveinteraction, love

Interpersonal Interpersonal relations, partiesrelations, parties

SafetySafety Security, stabilitySecurity, stability Job security, Job security, health insurancehealth insurance

PhysiologicalPhysiological Food, water, Food, water, sheltershelter

Basic pay level Basic pay level to buy itemsto buy items

NeedsNeeds DescriptionDescription ExamplesExamples

Lower-level needs must be satisfied before higher-level needs are

addressed..

Highest-level needs

Lowest-level needs

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Alderfer’s ERG Theory

After lower level needs satisfied, person seeks higher needs. Whenunable to satisfy higher needs, lower needs motivation is raised.

GrowthGrowth Self-development,Self-development,creative workcreative work

ContinuallyContinuallyimprove skillsimprove skills

RelatednessRelatedness Interpersonal Interpersonal relations, feelingsrelations, feelings

Good relations,Good relations,accurate feedbackaccurate feedback

ExistenceExistence Food, water, Food, water, clothing, and shelterclothing, and shelter

Adequate payAdequate payfor necessitiesfor necessities

NeedsNeeds DescriptionDescription ExamplesExamplesHighest-level

needs

Lowest-level needs

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Herzberg’s Motivation-Hygiene Theory Motivator needs

– Relate to the nature of the work itself– Autonomy, responsibility, interesting work

Hygiene needs – Relate to the physical and psychological

context of the work– Comfortable work environment, pay, job

security

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McClelland’s Needs

Achievement– A strong need to perform challenging

tasks well Affiliation

– Establishing and maintaining good interpersonal relations

Power– A desire to control or influence others

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Equity Theory

Equity Theory – Focuses on people’s perceptions of the

fairness (or lack of fairness) of their work outcomes in proportion to their work inputs.

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Equity TheoryCondition Person Referent Example

EquityEquity OutcomesOutcomes = = OutcomesOutcomesInputs InputsInputs Inputs

Worker contributesWorker contributesmore inputs but alsomore inputs but also

gets more outputsgets more outputsthan referentthan referent

UnderpaymentEquity

Outcomes < OutcomesInputs Inputs

Worker contributesmore inputs but also

gets the same outputsas referent

OverpaymentOverpaymentEquityEquity

OutcomesOutcomes > > OutcomesOutcomesInputs InputsInputs Inputs

Worker contributesWorker contributessame inputs but alsosame inputs but also

gets more outputsgets more outputsthan referentthan referent

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Equity Theory

Restoring Equity: Inequity creates tension in workers causing them to attempt to restore equity.– In underpayment, workers may reduce input levels

to correct (rebalance) the ratio or seek a raise.– In overpayment, workers may change the referent

person and readjust their ratio perception.– If inequity persists, workers will often choose to

leave the organization.

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Expectancy Theory

Motivation will be high when workers believe:– High levels of effort will

lead to high performance. – High performance

will lead to the attainment of desired outcomes.

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Expectancy Theory

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Expectancy Theory

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Operant Conditioning

Operant Conditioning– People learn to perform behaviors that lead

to desired consequences Organizational Behavior Modification

– Using operant conditioning techniques to promote the performance of desired organizational behaviors

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Operant Conditioning

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Social Learning Theory

Social Learning Theory– Modeling the behavior of others

Self-Reinforcement– Any attractive outcome or award that a

person can give himself/herself Self-efficacy

– A person’s belief about his or her ability to perform a behavior successfully

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Pay and Motivation Need Theory

– Pay is used to satisfy many needs Equity Theory

– Pay is given in relation to inputs Expectancy

– Pay must be valued as an outcome Learning Theory

– Pay is distributed upon performance of functional behaviors

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Merit Pay and Performance Compensation that bases pay on based on

performance. Individual

– When individual performance can be accurately measured

Group– When a group that works closely together is

measured and rewarded as a group Organization

– When group or individual outcomes are not easily measured

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Examples of Merit Pay Plans Piece-rate Pay

– Employee’s pay is based on the number of units that the employee produces

Commission Pay– Employee’s pay is based on a percentage of sales

that the employee makes. Organization-based Merit Plans

– Scanlon plan—focuses on reduced expenses or cutting costs

– Profit sharing—employees receive a share of an organization’s profits