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Chapter 13
Motivation and
Performance
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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.
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Learning Objectives
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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Outcomes and Inputs
Outcome
Anything a person
gets from a job or an
organization
Pay, job security,
benefits, vacation
time
Input
Anything a person
contributes to his or
her job or
organization
Time, effort, skills,
knowledge, work
behaviors
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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The Motivation Equation
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Expectancy Theory
 Expectancy
a person’s perception about the extent to which
effort (an input) results in a certain level of
performance
 Instrumentality
a person’s perception about the extent to which
performance at a certain level results in the
attainment of outcomes
 Valence
how desirable each of the available outcomes from
the job is to a person
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Expectancy, Instrumentality,
and Valence
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Expectancy Theory
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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 wellbeing.
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Maslow’s Hierarchy of Needs
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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
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Herzberg’s Motivation-Hygiene Theory
 Herzberg’s motivator-hygiene theory
A need theory that distinguishes between
motivator needs and hygiene needs and proposes
that motivator needs must be met for motivation
and job satisfaction to be high.
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Equity Theory
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Inequity
 Underpayment inequity
The inequity that exists when a person perceives
that his or her own outcome–input ratio is less
than the ratio of a referent.
 Overpayment inequity
The inequity that exists when a person perceives
that his or her own outcome–input ratio is
greater than the ratio of a referent
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Equity and Justice in Organizations
 Distributive justice
A person’s perception of the fairness of the
distribution of outcomes in an organization
 Procedural justice
A person’s perception of the fairness of the
procedures that are used to determine how to
distribute outcomes in an organization.
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Equity and Justice in Organizations
 Interpersonal justice
A person’s perception of the fairness of the
interpersonal treatment he or she receives from
whoever distributes outcomes to him or her.
 Informational justice
A person’s perception of the extent to which his
or her manager provides explanations for
decisions and the procedures used to arrive at
them.
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Goal Setting Theory
 Goal-setting theory
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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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 when dysfunctional behavior occurs
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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
gives 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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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: New Belgium Brewery
 How does the open-book management style
at New Belgium Brewery motivate the
employees?
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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