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Last Week…
 We discussed specific aspects of motivation and
leadership including some reference to theories
related to both motivation and leadership. The
information came primarily from chapters 5 and 7.
 This week, we will do more application of both
leadership and motivational theories and follow
more closely the points made in chapters 6 and 8.
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Motivational Models
 Drives and Needs
• Herzberg’s hygiene factors
• Maslow’s physiological and security needs
• Alderfer’s existence needs
 Expectancy and Valence
• Valence x Expectancy x Instrumentality = Motivation
 Behavior Modification
• High instrumentality is desired
 Equity
• Cost-reward comparison
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The Importance of Pay
 Pay relationships carry immense social value
• Money is not a direct incentive
• Motivation is encouraged by a complete reward
system
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A Complete Program
 Many types of pay are required for a complete
economic reward system
• Base pay (jobs)
• Performance rewards (individuals)
• Profit sharing (the organization)
 Non-incentive Pay Adjustments
• Seniority pay
• Pay for inconvenience
• Pay for time not worked
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Rewarding Employees with Money
 Money has Social Value
• Status value when received
• Status value when spent
• Represents to employees what their employer
thinks of them
• Indicates one employee’s status relative to that
of other employees
• Has as many values as there are possessors
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Additional Money Considerations
 Extrinsic and Intrinsic Rewards
• Money is less immediately satisfying than
intrinsic rewards
 Difficult Integration
• Employees differ in amount of intrinsic and
extrinsic rewards desired
• Payment of an extrinsic reward decreases the
intrinsic satisfaction received
• Hard to administer intrinsic rewards on a
systematic basis
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Additional Money Considerations
 Compliance With the Law
• Equal Pay Act of 1963
• Comparable worth
• Equal opportunity
 Other Factors
• Equality
• Secrecy
• Control
• Flexibility
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OB and Performance Appraisal
 Management by Objectives is a four-step,
cyclical process…
• Objective setting
• Action planning
• Periodic reviews
• Annual evaluation
©2007 The McGraw-Hill Companies, Inc., All Rights Reserved
OB and Performance Appraisal
 Reasons For Employee Appraisal
• Allocate resources in a dynamic environment
• Motivate and reward employees
• Give employees feedback about their work
• Maintain fair relationships within groups
• Coach and develop employees
• Comply with regulations
• Formal opportunity to express appreciation for
employee contributions
• Compliance with state and federal laws
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Performance Feedback
 Leads to improved performance and improved
attitudes
• If handled properly
 Greatest chance for behavioral change if…
• Feedback is desired by the employee
• It is connected to job tasks
• Receiver can choose a new behavior from
alternatives offered
• It is provided on an ongoing basis
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360-Degree Feedback
 Systematic data gathering from a variety of
sources
• Manager(s)
• Peers
• Subordinates
• Customers or clients
 Advantages
• Can be compared across time
• Rich feedback
• Can aid in performance improvement
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Appraisal Problems
 Management Problems
• Lack of vital skills
• Failure to gather data systematically
• Reluctance to address difficult/sensitive topics
• Failure to involve employees in assessment
process and discussion
• Cynical about probability that changes will
occur in employees
• Sees appraisals as a meaningless game
• Intentional distortion of feedback and ratings
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Attribution
 The process by which people interpret and
assign causes for their own and others’ behavior
• Consistency – is behavior the same over time
• Consensus – is behavior similar to others
• Distinctiveness – is behavior the same across
situations
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Nature of Attributions
 Personal Versus Situational Attributions
• Self-serving bias
• Fundamental attribution bias
• Perceptual set
• Self-fulfilling prophecy
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Servant Leadership
 Key Behaviors
• Listen actively and empathetically
• Engage in introspection to better understand
one’s own attitudes and feelings
• Treat others as equals, with respect
• Engage in dialogue/paraphrasing to ensure
understanding
• Affirm the worth and contributions of others
• Admit mistakes and ask for help
• Build trust by articulating values and acting
consistently with them
©2007 The McGraw-Hill Companies, Inc., All Rights Reserved
Leadership Theories
 Trait Theories
• Personality
 Situational and Behavioral Theories
• Leadership styles and behaviors
• Blake and Mouton Managerial Grid
 Contingency Approaches
• Fiedler’s Contingency Model
• Hersey and Blanchard Situational Leadership
• Path-Goal
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The Impact on Managerial Power
 Leader-Member Exchange
• Reciprocal relationships develop
• High-quality relationship results in greater
decision influence
• Participative managers retain final authority
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The Participative Process
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Disempowerment
 African-American participants in North Carolina
(i.e., social context in which groups were
predominately African-American) reported the
highest levels of perceived offensiveness when the
target of disempowerment was an AfricanAmerican women (rather than a Caucasian man)
 Further, men in North Carolina reported the highest
levels of perceived offensiveness.
 Demographic composition of groups may indeed
have a strong influence on perceptions and
behaviors
• Young, Vance, and Harris (2007) and Young,
Vance, and Ensher (2003)
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Disempowerment
 gender as a predictor of perceived offensiveness
when observing disempowering acts
 Other factors such as social context:
• study examined perceived offensiveness
reported by people in the same ethnic group
(i.e., African-Americans). Specifically, data
from African-Americans observers from two
different regions, one in which observers held a
majority status (i.e., North Carolina) and one in
which observers held a minority status (i.e.,
Southern California), were analyzed to
determine differences based on social context.
©2007 The McGraw-Hill Companies, Inc., All Rights Reserved
Disempowerment
Disempowerment
• negative workplace behaviors including
bullying and incivility
• intentional and unintentional behaviors
• perceived offensiveness resulting from
disempowerment can be direct or
vicarious
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The Process of Empowerment
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Nature of Empowerment and Participation
 Behavioral Tools
• Mutual goal setting
• Job feedback
• Modeling
• Contingent reward systems
• Participative management
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Nature of Empowerment and Participation
 Broad Approaches to Empowerment
• Job mastery
• Control
• Role models
• Social reinforcement and persuasion
• Emotional support
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Nature of Empowerment and Participation
 Powerlessness Causes Low Self-esteem
• Imposter phenomenon
 Empowerment is any process that provides
greater autonomy to employees through:
• Sharing of relevant information
• Control over factors affecting job performance
©2007 The McGraw-Hill Companies, Inc., All Rights Reserved