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Motivation Concepts Chapter # 7 Definition The process that account for an individual’s intensity, direction and persistence of effort toward attaining a goal. Organizational goals Level of motivation varies between individuals and within individuals at different times. Early Theories Hierarchy of Needs Theory Abraham Maslow 1. Physiological Hunger, shelter, bodily needs 2. Safety Security and protection 3. Social Belongingness 4. Esteem Self-respect, achievement 5. Self-actualization Growth, self-fulfillment Cont’d Lower-order needs Physiological, Safety & Social Higher order needs Esteem & self-actualization No empirical support Theory X & Theory Y Douglas McGregor (No support) Two distinct views of human being Negative (Theory X) Positive (Theory Y) Theory X Employees inherently dislike work Directed/coerced Theory Y Work as natural as rest or play Average person accepts and seek responsibility Two-Factor Theory Factors that lead to job satisfaction are different from factors to job dissatisfaction Hygiene factors (Extrinsic, Dissatisfaction) quality of supervision, pay, company policies, physical working conditions, job security & relationships. Emphasizing factors (Intrinsic, Satisfaction) Personal growth opportunities, recognition, responsibility & achievement McClelland’s Theory of Needs Need for Achievement Drive to excel, to achieve in relationship to a set of standards Need for Power Need to make others behave in a way they would not have otherwise Need to affiliation Desire for friendly and close interpersonal relationships Contemporary Theories Self-Determination Theory People prefer to feel they have control over their action Volunteer Vs Paid Employee Cognitive evaluation theory Extrinsic rewards reduce intrinsic interest in a task A Salesman, Software writer Self-concordance Reasons for pursuing goals are consistent with interest and core values Individuals-choose jobs carefully Job Engagement The investment of an employee’s physical, cognitive and emotional energies into job. Deeper level of commitment-match b/w individual's values & those of organization's. More engaged employees is successful organizations Engaged employees lead to higher productivity, fewer safety incidents, lower turnover. Goal Setting Theory Intentions to work towards a goal are a major source of work motivation Goals tell what needs to be done and how much effort is needed Specific goals, Difficult goals when accepted, Feed back increase performance. Specificity acts as an stimuli Cont’d Difficult goals are accepted for number of reasons Challenging goals get the attention and help focus It energizes for forking hard People persist in trying to attain them It leads to discover strategies that help perform the job more effectively. Feedback identifies discrepancies and guides behavior Self generated feedback is more powerful Cont’d Three other factors that influence the goals-performance relationship are: Goal commitment Task characteristics (Simple Vs Complex) MBO (Management by Objective) Goal specificity Participation in decision making An explicit time period Performance feedback Self-Efficacy Theory Social cognitive theory Believe that an individual is capable of performing a task. In difficult situations, People with low self efficacy lessen their effort or give up altogether People with high self-efficacy will try harder to master the challenge, are more engaged which increases the performance. Individuals high in self-efficacy respond to negative feedback with increased effort Self-efficacy & goal-setting theories complement each other Cont’d Four ways Self-efficacy can be increased Enactive mastery Vicarious modeling Verbal persuasion Arousal-energized state Reinforcement Theory Behavioristic View Behavior as environmentally caused; no internal cognitive events; reinforces control behavior. Reinforcement strengthens a behavior and increases the likelihood that it will be repeated Not a motivational theory in pure sense Operant Conditioning Theory People learn to behave to get something they want or to avoid something they don't want Cont’d According to B. F Skinner, People will most likely engage in desired behaviors if they are positively reinforced for doing so; rewards are most effective if they immediately follow the desired response; behavior that is not rewarded or is punished is less likely to be repeated. Class participation In its pure form, the reinforcement theory ignores feelings, attitudes, expectations Equity Theory Employees perceive what they get from a job situation (salary, raises, recognition) in relationship to what they put into it (effort, experience, education, competence) Compare the outcome-input ratio with that of others The ratio is equal, fairness and equity prevails The ratio is unequal, equity tension prevails Cont’d Moderating Variables Gender Length of tenure Level in the organization Education/professionalism Cont’d Inequity leads to one of the following choices: Change inputs (exert less effort if under paid) Change outcomes Distort perception of self Distort perceptions of others Choose a different referent Quit Organizational Justice Distributive justice Procedural justice Interactional justice (Dignity, concern, respect) Expectancy Theory If I give a maximum effort, will be recognized in my performance appraisal? If I get a good performance appraisal, will it lead to organizational rewards? If I am rewarded, are the rewards attractive to me? The strength of our tendency to act a certain way depends on the strength of our expectation of a given outcome and its attractiveness Cont’d Effort-performance relationship Performance-reward relationship Rewards-personal goals relationship Motivation: From concept to application Chapter # 8 The Job Characteristics Model Describes a job in terms of five core job dimensions Skill Variety Variety of different activities so the worker can use a number of different skills and talents Task Identity Job requires completion of a whole and identifiable piece of work Task Significance Job affects the lives or work of other people Cont’d Autonomy Job provides the worker freedom, independence and discretion in scheduling work and determining the procedures in carrying it out Feedback Carrying out work activities generates direct and clear information about performance Skill variety, task identity & task significance lead to experienced meaningfulness of the work that leads to high internal work motivation Cont’d Autonomy leads to responsibility that leads to satisfaction Feedback leads to knowledge of actual results that leads to low turnover and absenteeism Redesigning Jobs Job Rotation-Periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level Reduces boredom, increases motivation, understands contribution to the organization Job Enrichment Expands jobs by increasing the degree to which the worker controls the planning, execution and evaluation of the work. An enriched job organizes tasks to allow the worker to do a complete activity, increases employee’s freedom and independence, increases responsibility and provides feedback. Alternate Work Arrangements Flextime Job Sharing Telecommuting Employee Involvement Participative process that uses employee’s input to increase their commitment to the organization’s success The autonomy motivates, increases the commitment, more productive and high satisfaction Employee Involvement Programs Participative management Joint decision making between subordinates and supervisors Relevant to the interest, have competence and knowledge Higher stock returns, lower turnover and high productivity to some extent Representative participation Worker are represented by a small group of employees who actually participate Works council & board representatives Rewards to Motivate Employees Pay might not be the primary factor for driving satisfaction, but it does motivate people What to Pay: Establishing a Pay Structure Initially pay setting depends on two factors: Internal equity: the worth of the job External equity: relative to the market More pay, better qualified, motivated and longer tenure individuals Paying too much leads to expensive products Cont’d How to Pay: Rewarding Individual Employees Through Variable Pay Program Variable pay programs base a portion of employee’s pay on some individual/organizational measure of performance Earning fluctuates up and down Turning fixed labor into variable labor cost reduces expenses for firms if performance declines Piece-rate Pay Merit-based Pay: Based on performance appraisal ratings If designed correctly, merit-based plans let individuals perceive a strong relationship between their performance and their rewards Cont’d Bonuses When times are good, bonuses’ amount can be raised and vice versa Down side: Employee’s pay is more vulnerable to cuts Skill-based pay Profit-sharing plans Distributed around company’s profitability Can be direct cash outlays or stock options Employee Stock Ownership Plan Employee’s acquire stock, often at lower market price Increase employee satisfaction and innovation Cont’d Flexible Benefits: Developing a Benefit Package They individualize rewards by allowing each employee to choose the compensation package that best satisfies Modular plans: Predesigned packages, each of which meet the need of specific group Core Plus Plans: Core of essential benefits and a menu like selection of other to select from. Cont’d Intrinsic Rewards: Employee Recognition Programs Inexpensive since the praise is free!