1/16/2009Chapter SixteenManaging EmployeeMotivation andPerformanceSlide content created by Charlie Cook, The University of West AlabamaCopyright Houghton Mifflin Company. All rights reserved.Learning ObjectivesAfter studying this chapter, you should be able to:1. Characterize the nature of motivation, including itsimportance and basic historical perspectives.2. Identify and describe the major content perspectiveson motivation.3. Identify and describe the major processperspectives on motivation.4. Describe reinforcement perspectives on motivation.5. Identify and describe popular motivationalstrategies.6. Describe the role of organizational reward systemsin motivation.Copyright Houghton Mifflin Company. All rights reserved.16–2The Nature of Motivation Motivation– The set of forces that cause people to behave incertain ways.– The goal of managers is to maximize desiredbehaviors and minimize undesirable behaviors. The Importance of Motivation in theWorkplace– Determinants of Individual Performance Motivation—the desire to do the job. Ability—the capability to do the job. Work environment—the resources to do the job.Copyright Houghton Mifflin Company. All rights reserved.16–31
1/16/2009Figure 16.1: TheMotivation FrameworkCopyright Houghton Mifflin Company. All rights reserved.16–4Content Perspectives onMotivation Content Perspectives– Approaches to motivation that try to answer thequestion, ―What factors in the workplace motivatepeople?‖ Content Perspectives of Motivation––––Maslow’s Hierarchy of NeedsAldefer’s ERG TheoryHerzberg’s Two-Factor TheoryMcClelland’s Achievement, Power, and AffiliationNeedsCopyright Houghton Mifflin Company. All rights reserved.16–5Content Perspectives onMotivation (cont’d) The Need Hierarchy Approach– Maslow’s Hierarchy of Needs Physiological—basic survival and biological function.Security—a safe physical and emotional environment.Belongingness—love and affection.Esteem—positive self-image/self-respect and recognitionand respect from others. Self-actualization—realizing one’s potential for personalgrowth and development.– Weakness of Maslow’s theory Five levels of need are not always present. Ordering or importance of needs is not always the same. Cultural differences.Copyright Houghton Mifflin Company. All rights reserved.16–62
1/16/2009Figure 16.2: Maslow’sHierarchy of NeedsCopyright Houghton Mifflin Company. All rights reserved.16–7Content Perspectives onMotivation (cont’d) The ERG Theory– Needs are grouped into three overlappingcategories: Existence needs—physiological and security needs. Relatedness needs—belongingness and esteem byothers. Growth needs—self-esteem and self-actualization.– ERG theory assumes that: Multiple needs can be operative at one time (there is noabsolute hierarchy of needs). If a need is unsatisfied, a person will regress to a lowerlevel need and pursue that need (frustration-regression).Copyright Houghton Mifflin Company. All rights reserved.16–8Content Perspectives onMotivation (cont’d) The Two-Factor Theory (Herzberg)– Satisfaction and dissatisfaction are influenced bytwo independent sets of factors.– Theory assumes that job satisfaction and jobdissatisfaction are on two distinct continuums: Motivational factors (work content) are on a continuumthat ranges from satisfaction to no satisfaction. Hygiene factors (work environment) are on a separatecontinuum that ranges from dissatisfaction to nodissatisfaction.Copyright Houghton Mifflin Company. All rights reserved.16–93
1/16/2009Content Perspectives onMotivation (cont’d) The Two-Factor Theory (cont’d)– Theory posits that motivation is a two-stepprocess: Ensuring that the hygiene factors are notdeficient and not blocking motivation. Giving employees the opportunity to experiencemotivational factors through job enrichment.Copyright Houghton Mifflin Company. All rights reserved.16–10Figure 16.3: The Two-FactorTheory of MotivationCopyright Houghton Mifflin Company. All rights reserved.16–11Content Perspectives onMotivation (cont’d) Individual Human Needs (McClelland)– The need for achievement The desire to accomplish a goal or task more effectivelythan in the past.– The need for affiliation The desire for human companionship and acceptance.– The need for power The desire to be influential in a group and to be in controlof one’s environment. Implications of the Content Perspectives– Content (what causes motivation) Process (how motivationoccurs)Copyright Houghton Mifflin Company. All rights reserved.16–124
1/16/2009Process Perspectives onMotivation Process Perspectives– Approaches to motivation that focus on: Why people choose certain behavioral options to satisfytheir needs How they evaluate their satisfaction after they haveattained their goals. Process Perspectives of Motivation––––Expectancy TheoryPorter-Lawler Extension of Expectancy TheoryEquity TheoryGoal-Setting TheoryCopyright Houghton Mifflin Company. All rights reserved.16–13Process Perspectives onMotivation (cont’d) Expectancy Theory– Motivation depends on how much we want something andhow likely we are to get it.– Assumes that: Behavior is determined by personal and environmentalforces. People make decisions about their behavior inorganizations. People have different types of needs, desires, and goals. People choose among alternatives of behaviors inselecting one that that leads to a desired outcome. Motivation leads to effort that, when combined with abilityand environmental factors, results in performance whichleads to various outcomes that have value (valence) toemployees.Copyright Houghton Mifflin Company. All rights reserved.16–14Process Perspectives onMotivation (cont’d) Elements of Expectancy Theory– Effort-to-Performance Expectancy The employee’s perception of theprobability that effort will lead to a highlevel of performance.– Performance-to-OutcomeExpectancy The employee’s perception of theprobability that performance will lead toa specific outcome—the consequence orrewardfor behaviors in an organizationalsetting.Copyright Houghton Mifflin Company. All rights reserved.16–155
1/16/2009Process Perspectives onMotivation (cont’d) Elements of Expectancy Theory (cont’d)– Valence An index of how much an individual values a particularoutcome. It is the attractiveness of the outcome to the individual.– Attractive outcomes have positive valences andunattractive outcomes have negative valences.– Outcomes to which an individual is indifferent have zerovalences.– For motivated behavior to occur: Both effort-to-performance expectancy and performanceto-outcome expectancy probabilities must be greaterthan zero. The sum of the valences must be greater than zero.Copyright Houghton Mifflin Company. All rights reserved.16–16Figure 16.4: The ExpectancyModel of MotivationCopyright Houghton Mifflin Company. All rights reserved.16–17Process Perspectives onMotivation (cont’d) The Porter-Lawler Extension of ExpectancyTheory– Assumptions: If performance results in equitable and fair rewards,people will be more satisfied. High performance can lead to rewards and highsatisfaction.– Types of rewards: Extrinsic rewards are outcomes set and awarded byexternal parties (e.g., pay and promotions). Intrinsic rewards are outcomes internal to the individual(e.g., self-esteem and feelings of accomplishment).Copyright Houghton Mifflin Company. All rights reserved.16–186
1/16/2009Figure 16.5: The Porter-LawlerExtension of Expectancy TheoryCopyright Houghton Mifflin Company. All rights reserved.16–19Process Perspectives onMotivation (cont’d) Equity Theory– People are motivated to seek social equity in therewards they receive for performance. Equity is an individual’s belief that the treatment he orshe receives is fair relative to the treatment received byothers.– Individuals view the value of rewards (outcomes)and inputs of effort as ratios and make subjectivecomparisons of themselves to other people.outcomes(self)inputs (self) outcomes (other)inputs (other)Copyright Houghton Mifflin Company. All rights reserved.16–20Process Perspectives onMotivation (cont’d) Equity Theory (cont’d)– Conditions of and reactions to equity comparisons: Feeling equitably rewarded.– Maintain performance and accept comparison as fairestimate. Feeling under-rewarded—try to reduce inequity.–––––Change inputs by trying harder or slacking off.Change outcomes by demanding a raise.Distort the ratios by altering perceptions of self or of others.Leave situation by quitting the job.Change comparisons by choosing another object person. Feeling over-rewarded.– Increase or decrease inputs.– Distort ratios by rationalizing.– Help the object person gain more outcomes.Copyright Houghton Mifflin Company. All rights reserved.16–217
1/16/2009Process Perspectives onMotivation (cont’d) Goal-Setting Theory– Assumptions Behavior is a result of conscious goals and intentions. Setting goals influence the behavior of people inorganizations. Characteristics of Goals– Goal difficulty Extent to which a goal is challenging and requires effort. People work harder to achieve more difficult goals. Goals should be difficult but attainable.– Goal specificity Clarity and precision of the goal. Goals vary in their ability to be stated specificallyCopyright Houghton Mifflin Company. All rights reserved.16–22Process Perspectives onMotivation (cont’d) Characteristics of Goals (cont’d)– Goal acceptance The extent to which persons accept agoal as their own.– Goal commitment The extent to which an individual ispersonally interested in reaching agoal. Implications of the ProcessPerspectives– If rewards are to motivateemployees, they must be perceivedas being valued, attainable, fair andequitable.Copyright Houghton Mifflin Company. All rights reserved.16–23Figure 16.6: The Expanded Goalsetting Theory of MotivationCopyright Houghton Mifflin Company. All rights reserved.16–248
1/16/2009Reinforcement Perspectiveson Motivation Reinforcement Theory– The role of rewards as they cause behaviorto change or remain the same over time.– Assumes that: Behavior that results in rewardingconsequences is likely to be repeated, whereasbehavior that results in punishingconsequences is less likely to be repeated.Copyright Houghton Mifflin Company. All rights reserved.16–25Reinforcement Perspectiveson Motivation (cont’d) Kinds of Reinforcement in Organizations– Positive reinforcement Strengthens behavior with rewards or positive outcomesafter a desired behavior is performed.– Avoidance Strengthens behavior by avoiding unpleasantconsequences that would result if the behavior is notperformed.– Punishment Weakens undesired behavior by using negativeoutcomes or unpleasant consequences when thebehavior is performed.– Extinction Weakens undesired behavior by simply ignoring or notreinforcing that behavior.Copyright Houghton Mifflin Company. All rights reserved.16–26Reinforcement Perspectiveson Motivation (cont’d) Providing Reinforcement in Organizations– Reinforcement schedules Fixed interval schedule—reinforcement applied at fixedtime intervals, regardless of behavior. Variable interval—reinforcement applied at variable timeintervals. Fixed ratio—reinforcement applied after a fixed numberof behaviors, regardless of time. Variable Ratio—reinforcement applied after a variablenumber of behaviors, regardless of time.Copyright Houghton Mifflin Company. All rights reserved.16–279
1/16/2009Table 16.1: Elements ofReinforcement TheoryCopyright Houghton Mifflin Company. All rights reserved.16–28Reinforcement Perspectiveson Motivation (cont’d) Providing Reinforcement in Organizations(cont’d)– Behavior modification (OB mod) A method for applying the basic elements ofreinforcement theory in an organizational setting. Specific behaviors are tied to specific forms ofreinforcement. Implications of the ReinforcementPerspectives– Consistently applied reinforcement helps maintainemployee motivation by: encouraging (rewarding) positive behaviors discouraging (punishing) dysfunctional behaviors in anorganization.Copyright Houghton Mifflin Company. All rights reserved.16–29Popular MotivationalStrategies Empowerment and Participation– Empowerment Enabling workers to set their own work goals, makedecisions, and solve problems within their sphere ofinfluence.– Participation Giving employees a voice in making decisions abouttheir work.– Areas of participation for employees: Making decisions about their jobs. Decisions about administrative matters (e.g., workschedules). Participating in decision making about broader issues ofproduct quality.Copyright Houghton Mifflin Company. All rights reserved.16–3010
1/16/2009Popular MotivationalStrategies (cont’d) Techniques and Issues in Empowerment– Using work teams Collections of employees empowered to plan, organize,direct, and control their work.– Decentralization Changing the overall method of organizing the firm– Conditions necessary for empowerment: Power spread to lower organizational levelsCommitment to empowering workersSystematic and patient efforts to empower workers.Increased commitment to training.Copyright Houghton Mifflin Company. All rights reserved.16–31Using Reward Systems toMotivate Performance (cont’d) Reward System– The formal and informal mechanisms by whichemployee performance is defined, evaluated, andrewarded. Effects of Organizational Rewards– Higher-level performance-based rewards motivateemployees to work harder.– Rewards help align employee self-interest withorganizational goals.– Rewards foster increased retention and citizenshipCopyright Houghton Mifflin Company. All rights reserved.16–32Using Reward Systems toMotivate Performance (cont’d) Merit Reward Systems– Base a meaningful portion of individualcompensation on merit—the relative value of anindividual’s contributions to the organization. Employees who make greater contributions are givenhigher pay than those who make lesser contributions. Incentive Reward Systems– Concept: employee pay is based on employeeoutput.– Assume that: Performance is under the control of the individual worker. The employee work at a single task continuously. Pay is tightly tied to performance (i.e., pay varies withoutput).Copyright Houghton Mifflin Company. All rights reserved.16–3311
1/16/2009Using Reward Systems toMotivate Performance (cont’d) Incentive Reward Systems (cont’d)– Incentive pay plans Piece-rate systems Sales commissions– Other forms of incentives Non-monetary incentives (perks) Team and Group Incentive Reward Systems– Gainsharing programs– Scanlon Plan– Employee stock ownership plans (ESOPs)Copyright Houghton Mifflin Company. All rights reserved.16–34Using Reward Systems toMotivate Performance (cont’d) Executive Compensation– Standard forms of executive compensation Base salary Incentive pay (bonuses)– Special forms of executive compensation Stock option plans Executive perks– Criticism of executive compensation Excessively large compensation amounts Compensation not tied to overall performance of theorganization Earnings gap between executive pay and typicalemployee payCopyright Houghton Mifflin Company. All rights reserved.16–35Using Reward Systems toMotivate Performance (cont’d) New Approaches to Performance-BasedRewards– Leveraging the value of incentives Allowing individuals and groups in the organization tohave a say in how rewards are distributed.– Getting increasingly innovative in incentiveprograms: Offering stock options to all employees Individualizing the rewards available to individuals inreward systemsCopyright Houghton Mifflin Company. All rights reserved.16–3612
1/16/2009Key Terms motivation content perspectives Maslow’s hierarchy ofneeds ERG theory ofmotivation two-factor theory ofmotivation need for affiliation need for achievement need for power process perspectives expectancy theory effort-to-performanceexpectancy outcomes valence equity theory avoidance positive reinforcement extinction variable-ratio schedule variable-intervalschedule participationCopyright Houghton Mifflin Company. All rights reserved.16–37Key Terms behavior modification(OB Mod) compressed workschedule job sharing telecommuting merit pay plan reward system piece-rate incentiveplan gainsharing programs Scanlon planCopyright Houghton Mifflin Company. All rights reserved. stock option plan16–3813
The Two-Factor Theory (Herzberg) –Satisfaction and dissatisfaction are influenced by two independent sets of factors. –Theory assumes that job satisfaction and job dissatisfaction are on two distinct continuums: Moti
Part One: Heir of Ash Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26 Chapter 27 Chapter 28 Chapter 29 Chapter 30 .
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TO KILL A MOCKINGBIRD. Contents Dedication Epigraph Part One Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Part Two Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18. Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26
About the husband’s secret. Dedication Epigraph Pandora Monday Chapter One Chapter Two Chapter Three Chapter Four Chapter Five Tuesday Chapter Six Chapter Seven. Chapter Eight Chapter Nine Chapter Ten Chapter Eleven Chapter Twelve Chapter Thirteen Chapter Fourteen Chapter Fifteen Chapter Sixteen Chapter Seventeen Chapter Eighteen
DEDICATION PART ONE Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 PART TWO Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 .
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