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CHAPTER 11 INFLUENCING INDIVIDUAL BEHAVIOR AND MOTIVATION CHAPTER OBJECTIVES After studying this chapter and the case exercises at the end, students should be able to: 1. Explain to the manager why the pay-for-performance incentive plan is not working. 2. Explain to the manager why his or her attempts to empower the employees have been ineffective. 3. Determine if the job is amenable to job enrichment and explain in detail how to enrich it. 4. Develop a behavior management program for the job in question. 5. Analyze the performance problem and recommend how to solve it. LECTURE OUTLINE The Management Challenge Introduction You are a Motivation Expert What Managers Should Know about Individual Behavior Personality and Behavior Abilities and Behavior Self-Concept and Behavior Perception and Behavior Attitudes and Behavior Need-Based Approaches to Motivation Maslow’s Needs-Hierarchy Theory Existence Relatedness Growth (ERG) Theory Herzberg’s Hygiene-Motivator (Two-Factor) Approach Needs for Achievement, Power, and Affiliation Employee Needs in Practice Process Approaches to Motivation Adam’s Equity Theory Locke’s Goal Theory of Motivation Vroom’s Expectancy Theory Learning/Reinforcement Approaches to Motivation B.F. Skinner and Operant Behavior Behavior Modification Motivation in Action: 10 Methods for Motivating Employees Set Goals Use Pay-for-Performance Improve Merit Pay Use Recognition Use Positive Reinforcement Use Behavior Management Empower Employees Enrich the Jobs Use Skill-Based Pay Provide Lifelong Learning An Integrating Model: How to Analyze Performance-Motivation Problems Summary 160 ANNOTATED OUTLINE NOTES The Management Challenge When Gordon Bethune became the CEO of Continental Airlines, the company was close to bankruptcy. He also faced a demoralized workforce due to cost-cutting strategies implemented during the 1980’s. Bethune knew he was going to need his employees’ buy-in before implementing any changes, so he decided to build his entire strategy around his employees, starting with a new motivation plan. You Are a Motivation Expert What Managers Should Know About Individual Behavior The law of individual differences is a psychological term that represents the fact that people differ in their personalities, abilities, self-concept, values, and needs. Psychologists have taken three main approaches to studying what motivates people. These are the need-based, process-based, and learning/reinforcementbased approaches. Personality and Behavior Personality is the characteristic and distinctive traits of an individual, and they way these traits interact to help or hinder the adjustment of the person to other people and situations. Psychologists today often emphasize the “big five” personality dimensions as they apply to behavior at work: extraversion, emotional stability, agreeableness, conscientiousness, and openness to experience. The Myers-Briggs Type Indicator is tool used to measure personality, particularly in the work setting. The MBTI classifies people as introverted or extroverted, sensing or intuitive, thinking or feeling, perceiving or judging. Figure 11-1 Some Individual Determinants of Behavior Figure 11-2 Cattell’s 16 Personality Factors Figure 11-3 Four Examples of MBTI Styles and Some Corresponding Occupations Abilities and Behavior Individual difference in abilities also influence how we behave and perform. There are several types of abilities: mental, cognitive, or thinking abilities, mechanical abilities, and psychomotor abilities. Self-Concept and Behavior Who we are and how we behave is largely driven by our perceptions of who we are and how we relate to other people (self-concept). Self-efficacy is part of self-concept, and affects how people perform and even whether they try to accomplish a task. Perception and Behavior Our behavior is motivated by our perceptions. Sometimes perceptions lead to stereotyping, associating certain characteristics with certain socioeconomic classes, but not with others. Perceptions depend on many things such as personality and needs, self-efficacy, values, stress, and one’s position. 161 Figure 11-4 Perception Affect How We “See” the Arches’ Sizes Attitudes and Behavior An attitude is a tendency to respond to objects, people, or events in either a positive or negative way. Job satisfaction is one of the most familiar examples of attitudes at work. Need-Based Approaches to Motivation Need-based approaches to motivating individuals focus on the role of needs or motivational dispositions in driving people to do what they do. Maslow’s Needs-Hierarchy Theory Maslow argued that people have five increasingly higher-level needs: physiological, safety, social, self-esteem, and selfactualization. Maslow’s theory states that people become motivated to satisfy the lower-order needs (physiological, safety, social), and then, in sequence, each of the higher-order needs (self-esteem, self-actualization). Figure 11-5 Maslow’s Hierarchy of Needs Existence Relatedness Growth (ERG) Theory Alderfer focuses on three needs: existence, relatedness, and growth. Existence needs are similar to Maslow’s physiological needs, and to the physical components of Maslow’s security needs. Relatedness needs are those that require interpersonal interaction to satisfy the needs for things like prestige and esteem from others. Growth needs are similar to Maslow’s needs for self-esteem and self-actualization. Herzberg’s Hygiene-Motivator (Two-Factor) Approach Herzberg’s Hygiene-Motivator theory divides Maslow’s Hierarchy into a lower-level and a higher-level set of needs, and suggests that the best way to provide motivation for an employee is to offer to satisfy the person’s higher-order needs, ego and selfactualization. Herzberg said that lower-order needs, or hygiene factors, are different from higher-order needs, or motivators. He maintains that adding more hygiene factors to the job is a very bad way to motivate because lower-order needs are quickly satisfied. Needs for Achievement, Power, and Affiliation McClelland and Atkinson agree with Herzberg that higher-level needs are most important at work. They believe the needs for affiliation, power, and achievement are most important. They use the Thematic Apperception Test to identify a person’s needs for achievement, power, and affiliation. People with a high need for achievement strive for success, are highly motivated to accomplish a challenging task or goal, prefer tasks that have a reasonable chance for success, and avoid tasks that are either too easy or too difficult. People with a high need for power enjoy roles 162 Figure 11-6 Summary of Herzberg’s Motivator-Hygiene Findings Figure 11-7 What is Happening Here? requiring persuasion. People with a strong need for affiliation are highly motivated to maintain strong, warm relationships. Employee Needs in Practice Because everyone is different, you must apply your knowledge of human motives and needs to determine which needs motivate different individuals. Process Approaches to Motivation Process approaches to motivating employees explain motivation in terms of the decision-making process through which motivation takes place. Adam’s Equity Theory Adams’s equity theory assumes that people have a need for fairness at work, and therefore, value and seek it. People are motivated to maintain a balance between what they perceive as their inputs or contributions and their rewards as compared to others. This theory seems to work when people feel they are underpaid, but inequity due to overpayment does not seem to have the positive effects on either quantity or quality that Adams’s equity theory would predict. Locke’s Goal Theory of Motivation Goal theory states that when a person decides to pursue a goal, the person regulates his/her behavior to try to ensure the goals are reached. Goals provide the mechanism through which unsatisfied needs are translated into action. Research has found that people who are assigned or who adopt difficult and specific goals outperform people who are simply told to “do their best.” Vroom’s Expectancy Theory Expectancy theory states that a person’s motivation to exert a certain level of effort is a function of three things: expectancy (E), instrumentality (I), and valance (V). Motivation = E x I x V. “E” is the person’s expectancy that his or her effort will lead to performance, “I” represents the perceived relationship between successful performance and obtaining the reward, and “V” refers to the perceived value the person attaches to the reward. Learning/Reinforcement Approaches to Motivation Learning/reinforcement approaches to motivation focus on how people’s behavior is molded by the consequences or results of their actions. Learning is a relatively permanent change in a person that occurs as a result of experiences. Skinner developed operant behavior theory where the main question is how to strengthen the association between the contingent reward and the operant behavior. 163 Figure 11-8 How a Perceived Inequity Can Affect Performance B.F. Skinner and Operant Behavior Psychologist B.F. Skinner’s findings provide the foundation for much of what is known about learning. Operant behavior is a behavior that appears to operate on or have an influence on the subject’s environment. The process of “teaching” the operant behavior is operant conditioning. Behavior Modification Behavior modification means changing or modifying behavior through the use of contingent rewards or punishment. It is based on two principles: behavior that appears to lead to a positive consequence tends to be repeated, whereas behavior that appears to lead to a negative consequence tends not to be repeated. By providing the properly scheduled rewards, it is possible to get a person to learn to change his or her behavior. Motivation in Action: 10 Methods for Motivating Employees Set Goals Manager’s first option for motivating employees is to ensure that the employee has a doable goal that he or she agrees with. Use Pay for Performance Pay for performance refers to any compensation method that ties pay to the quantity or quality of work the person produces. Variable pay plans are pay for performance plans that put a portion of the employee’s pay at risk, in return for the opportunity to earn additional pay. Gainsharing plans are group incentive plans that engage many or all employees in a common effort to achieve productivity goals. Stock options are rights to purchase company stock at a discount some time in the future. Management in Action Continental’s Pay-for-Performance Plans Improve Merit Pay A merit raise is a salary increase, usually permanent, that is based on the employee’s individual performance. It is a continuing increment rather than a single payment like a bonus. Relying heavily on merit rewards can be a problem because the reinforcement benefits of merit pay are usually only determined once per year. The solution to this problem is to apply merit raises more intelligently. First, clarify performance standards before the measurement period begins. Second, institute a performance appraisal system that you can use to systematically and accurately evaluate performance. Third, train all supervisors to award merit pay based on merit rather then across the board. Fourth, conduct these awards allocations biannually. 164 Table 11-1 The Motivational Underpinnings of 10 Motivation Methods Checklist 11.1 Setting Effective Goals Checklist 11.2 How to Implement an Incentive Plan Use Recognition Some employees highly value day-to-day recognition from their supervisors, peers and team members because it is important for their work to be appreciated by others. Recognition helps satisfy the need people have to achieve and be recognized for their achievement. Management in Action Saying Thank You Use Positive Reinforcement Positive reinforcement programs rely on operant conditioning principles to supply positive reinforcement and change behavior. Experts claim it is better to focus on improving desirable behaviors rather than on decreasing undesirable ones. There are a variety of consequences including social consequences (e.g., peer approval or praise from the boss), intrinsic consequences (e.g., the enjoyment the person gets from accomplishing challenging tasks), or tangible consequences (e.g., bonuses or merit raises). Figure 11-9 Positive Reinforcement Rewards Table 11-2 Order of Importance of Various Job Factors Managing at the Speed of Thought Going Online with Incentives Use Behavior Management Managers applying behavior modification at work must address two basic issues: the type of reinforcement, and the schedule of reinforcement. Types of reinforcement include: positive reinforcement, extinction, negative reinforcement, and punishment. Research shows that the fastest way to get someone to learn is to reinforce the desired behavior every time it occurs. This is continuous reinforcement. Variable reinforcement is when you don’t reinforce the desired behavior each time it occurs, but every few times, around some average number of times. The way to motivate the right behavior is to identify the desired behaviors and then carefully reinforce them. This process involves four steps: pinpoint behavior, record, change consequences, and evaluate. Empower Employees Empowerment means giving employees the authority, tools, and information they need to do their jobs with greater autonomy, as well as the self-confidence to perform new jobs effectively. Empowerment boosts employees’ feelings of self-efficacy and enables them to use their potential more fully. Enrich the Jobs Job enrichment means building motivators like opportunities for achievement into the job by making it more interesting and challenging. Job enrichment may be implemented by forming natural work groups, combining tasks, establishing client relationships, vertically loading the job, and having open feedback 165 Figure 11-10 Options for Modifying Behavior with Reinforcement Figure 11-11 Performance Improvement Project Worksheet Table 11-3 Practical Suggestions for Empowering Others Figure 11-12 A Job Enrichment Evaluation Form channels. Job design refers to the number and nature of activities in a job. The key issue is whether jobs should be more specialized or more enriched and nonroutine. Job design has been implemented in several ways. Job enlargement assigns workers to additional same-level tasks to increase the number of tasks they have to perform. Job rotation systematically moves workers from job to job. Figure 11-13 Sample of Saturn’s Work Team Functions Use Skill-Based Pay With skill-based pay, employees are paid for the range, depth, and types of skills and knowledge they are capable of using rather than for the job they currently hold. Skill-based pay is consistent with motivation theory because people have a self-concept in which they seek to fulfill their potential. The system also appeals to the employee’s sense of self-efficacy because the reward is a formal and concrete recognition that the person can do the more challenging job well. Provide Lifelong Learning Lifelong learning can be used to deal with problems of downsizing and employee commitment, and to counterbalance their negative effects. It provides extensive continuing training and education, from basic remedial skills to advanced decision-making techniques, throughout the employees’ careers, which provide employees the opportunity to boost their self-efficacy and selfactualization. An Integrating Model: How to Analyze PerformanceMotivation Problems Inadequate performance may have three main sources: either the person does not know what to do in terms of his or her goals; or could not do the job if he or she wanted to; or is not motivated to the job. Figure 11-14 How to Analyze Performance-Motivation Problems SUMMARY 1. Motivation is the intensity of the person’s desire to engage in some activity. Need-based approaches to motivating employees—such as those of Maslow and Herzberg—emphasize the role played by motivational dispositions or needs, such as the need for achievement and for self-actualization. 2. An employee’s thought process also influences motivation. Thus, people seek equity in their inputs and rewards. Having decided to pursue a goal, they regulate their behavior to try to ensure that they reach that goal. Their expectations—that effort will lead to performance, that performance will lead to reward, and that the reward is valuable enough to pursue in the first place—also influence motivation. 3. Behavior modification means changing or modifying behavior through the use of contingent rewards or punishment. It assumes, for instance, that behavior that appears to lead to a positive consequence or reward tends to be repeated, whereas behavior that leads to a negative consequence or punishment tends not to be repeated. 166 4. Methods based on motivational approaches like Maslow’s theory and behavior modification include pay for performance, spot awards, merit raises, empowerment, goal setting, positive reinforcement, and lifelong learning. KEY TERMS motivation 283 law of individual differences 284 personality 284 authoritarian personality 284 Machiavellian personality 285 self-concept 286 self-efficacy 286 perceptions 286 stereotyping 287 attitude 287 job satisfaction 287 motive 288 motivational dispositions or needs 288 aroused motive 288 equity theory 293 goal theory 294 expectancy 295 instrumentality 295 valence 295 learning 295 operant behavior 296 contingent reward 296 behavior modification 296 pay for performance 297 variable pay plan 297 gainsharing plan 298 merit raise 299 spot award 301 positive reinforcement 302 extinction 302 negative reinforcement 302 punishment 302 empowerment 305 job enrichment 306 job design 308 job enlargement 308 job rotation 309 lifelong learning 309 167