Motivation and

Performance

chapter thirteen

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives

1. Explain what motivation is and why managers need to be concerned about it.

2. Describe from the perspectives of expectancy theory and equity theory what managers should do to have a highly motivated workforce.

3. Explain how goals and needs motivate people and what kinds of goals are especially likely to result in high performance.

4. Identify the motivation lessons that managers can learn from operant conditioning theory and social learning theory.

5. Explain why and how managers can use pay as a major motivation tool.

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The Nature of Motivation

Motivation└ The psychological forces that determine the

direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence

└ Explains why people behave the way they do in organizations

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The Nature of Motivation

Direction └ possible behaviors the individual could engage in

Effort └ how hard the individual will work

Persistence └ whether the individual will keep trying or give up

when faced with obstacles

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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 or to avoid punishment. Prosocially motivated behavior

└ behavior performed to benefit or help others

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Example – Warren Buffet

Investor Warren Buffett is giving away a large portion of his fortune to the Gates foundation

He is doing it now because he believes in the work the foundation is doing with world health issues and improving U.S. libraries and high schools

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Outcomes and Inputs

Outcome└ Anything a person gets

from a job or an organization

└ Pay, job security, autonomy, accomplishment

Input└ Anything a person

contributes to his or her job or organization

└ Time, effort, skills, knowledge, work behaviors

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The Motivation Equation

13-8Figure 13.1

Expectancy Theory

Expectancy theory └ The theory that motivation will be high when

workers believe that high levels of effort lead to high performance and high performance leads to the attainment of desired outcomes.

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Expectancy Theory

Expectancy └ the belief that effort (input) will result in a certain

level of performance Instrumentality

└ the belief that performance results in the attainment of outcomes

Valence └ how desirable each of the available outcomes

from the job is to a person13-10

Expectancy, Instrumentality, and Valence

13-11Figure 13.2

Expectancy Theory

13-12Figure 13.3

Need Theories

Need Theories└ Theories of motivation that focus on what needs

people are trying to satisfy at work and what outcomes will satisfy those needs.

Need └ A requirement or necessity for survival and well-

being.

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Maslow’s Hierarchy of Needs

Maslow’s hierarchy of needs └ An arrangement of five basic needs that motivate

behavior. Maslow proposed that the lowest level of unmet needs is the prime motivator and that only one level of needs is motivational at a time.

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Maslow’s Hierarchy of Needs

13-15Table 13.1

Alderfer’s ERG Theory

Alderfer’s ERG theory └ The theory that three universal needs—for

existence, relatedness, and growth— constitute a hierarchy of needs and motivate behavior.

└ Alderfer proposed that needs at more than one level can be motivational at the same time.

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Alderfer’s ERG Theory

13-17Table 13.2

Herzberg’s Motivation-Hygiene Theory

Focuses on outcomes that lead to higher motivation and job satisfaction, and those outcomes that can prevent dissatisfaction.

Unsatisfied hygiene needs create dissatisfaction; satisfaction of hygiene needs does not lead to motivation or job satisfaction.

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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 are related to the physical and psychological context of the work—comfortable work environment, pay, job security.

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McClelland’s Needs for Achievement, Affiliation, and Power

Need for Achievement└ The extent to which an individual has a strong

desire to perform challenging tasks well and to meet personal standards for excellence.

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McClelland’s Needs for Achievement, Affiliation, and Power

Need for Affiliation└ Concerned about establishing and maintaining

good interpersonal relations, being liked, and having the people around him get along with each other

Need for Power└ A desire to control or influence others

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Equity Theory

Equity Theory └ A theory of motivation

that focuses on people’s perceptions of the fairness of their work outcomes relative to their work inputs.

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Equity Theory

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Table 13.3

Goal Setting Theory

Goal└ A theory that focuses on identifying the types of

goals that are most effective in producing high levels of motivation and performance and explaining why goals have these effects.

└ Must be specific and difficult

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Learning Theories

Learning theories └ Theories that focus on increasing employee

motivation and performance by linking the outcomes that employees receive to the performance of desired behaviors and the attainment of goals.

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Operant Conditioning Theory

Operant Conditioning└ People learn to perform behaviors that lead to

desired consequences and learn not to perform behaviors that lead to undesired consequences.

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Operant Conditioning Tools

Positive Reinforcement└ Gives people outcomes they desire when they

perform organizationally functionally behaviors Negative Reinforcement

└ Eliminating or removing undesired outcomes when people perform organizationally functional behaviors

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Operant Conditioning Tools

Extinction└ Curtailing the performance of a dysfunctional

behavior by eliminating whatever is reinforcing it. Punishment

└ Administering an undesired or negative consequence to immediately stop a dysfunctional behavior.

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Avoiding Side Effects of Punishment

Downplay the emotional element involved Try to punish dysfunctional behaviors as soon

as they occur Try to avoid punishing someone in front of

others

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Organizational Behavior Modification

Organizational Behavior Modification└ The systematic application of operant

conditioning techniques to promote the performance of organizationally functional behaviors and discourage the performance of dysfunctional behaviors.

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Steps in Organizational Behavior Modification

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Figure 13.4

Social Learning Theory

Social Learning Theory└ A theory that takes into account how learning and

motivation are influenced by people’s thoughts and beliefs and their observations of other people’s behavior

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Social Learning Theory

Vicarious Learning└ Occurs when a person becomes motivated to

perform a behavior by watching another person perform the behavior and be positively reinforced for doing so

└ Also called observational learning

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Social Learning Theory

Self-reinforcer└ Any desired or

attractive outcome or award that a person can give himself or herself for good performance.

Self-efficacy└ A person’s belief about

his or her ability to perform a behavior successfully.

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Pay and Motivation

Pay as a Motivator└ Expectancy: Instrumentality, the association

between performance and outcomes, must be high for motivation to be high.

└ Need Theory: pay is used to satisfy many needs.└ Equity Theory: pay is given in relation to inputs.

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Pay and Motivation

Pay as a Motivator└ Goal Setting Theory: pay is linked to attainment of

goals.└ Learning Theory: outcomes (pay), is distributed

upon performance of functional behaviors.

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Merit Pay and Performance

Merit Pay Plan└ A compensation plan that bases pay on based on

individual, group and/or organization performance.

└ Individual plan: when individual performance (sales) can accurately measured.

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Salary Increase or Bonus?

Motivational value of a bonus Is higher when: Salary levels are unrelated to current

performance. Changes in other compensation items (cost of

living, seniority) are not having a large effect in increasing compensation.

Salaries rarely change and performance does.

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Salary Increase or Bonus?

Employee Stock Option└ A financial instrument that entitles the bearer to

buy shares of an organization’s stock at a certain price during a certain period of time or under certain conditions.

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Video Case: Learn to Love Your Job

What are the three signs of a miserable job identified by Pat Lencioni, and how do they reduce productivity?

When the three signs of a miserable job are present, which of the needs identified by Maslow are not being met?

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