Foundations of Employee Motivation

McShane/Von Glinow OB 5e

1

© 2010 The McGraw-Hill Companies, Inc. All rights reserved

Employee Motivation and Engagement at Rackspace
Rackspace hosting has a highly motivated and engaged workforce by rewarding performance, fulfilling personal needs, and providing strengths-based feedback.

McShane/Von Glinow OB 5e

2

© 2010 The McGraw-Hill Companies, Inc. All rights reserved

Motivation Defined

The forces within a person that affect the direction, intensity, and persistence of voluntary behavior

Exerting particular effort level (intensity), for a certain amount of time (persistence), toward a particular goal (direction).

McShane/Von Glinow OB 5e

3

© 2010 The McGraw-Hill Companies, Inc. All rights reserved

All rights reserved . Inc.Employee Engagement Emotional and cognitive motivation. self-efficacy to perform the job. a clear understanding of one’s role in the organization’s vision and a belief that one has the resources to perform the job McShane/Von Glinow OB 5e 4 © 2010 The McGraw-Hill Companies.

fundamental needs.Drives and Needs  Drives (aka-primary needs. social norms. and past experience (primary needs) Drives Needs Decisions and Behavior McShane/Von Glinow OB 5e 5 © 2010 The McGraw-Hill Companies. All rights reserved . Inc. innate motives) • Neural states that energize individuals to correct deficiencies or maintain an internal equilibrium • Prime movers of behavior by activating emotions Self-concept.

and experience Self-concept. and past experience (primary needs) Drives Needs Decisions and Behavior McShane/Von Glinow OB 5e 6 © 2010 The McGraw-Hill Companies. social norms. • Drive-generated emotions directed toward goals • Goals formed by self-concept. social norms.Drives and Needs  Needs • Goal-directed forces that people experience. Inc. All rights reserved .

All rights reserved .Maslow’s Needs Hierarchy Theory Seven categories capture most needs Five categories placed in a hierarchy Selfactualization Need to know Need for beauty Esteem Belongingness Safety Physiological McShane/Von Glinow OB 5e 7 © 2010 The McGraw-Hill Companies. Inc.

next higher need becomes the primary motivator Self-actualization -. Inc.a growth need because people desire more rather than less of it when satisfied Need for beauty  Esteem Belongingness  Safety Physiological McShane/Von Glinow OB 5e 8 © 2010 The McGraw-Hill Companies. All rights reserved .Maslow’s Needs Hierarchy Theory Need to know Selfactualization  Lowest unmet need has strongest effect When lower need is satisfied.

Evaluating Maslow’s Theory Need to know Selfactualization   Lack of support for theory People have different hierarchies – don’t progress through needs in the same order Needs change more rapidly than Maslow stated Need for beauty Esteem Belongingness  Safety Physiological McShane/Von Glinow OB 5e 9 © 2010 The McGraw-Hill Companies. All rights reserved . Inc.

not just instinct  More positivistic • Pay attention to strengths. Inc. not just deficiencies McShane/Von Glinow OB 5e 10 © 2010 The McGraw-Hill Companies. All rights reserved .What Maslow Contributed to Motivation Theory  More holistic • Integrative view of needs  More humanistic • Influence of social dynamics.

Inc.What’s Wrong with Needs Hierarchy Models?   Wrongly assume that everyone has the same needs hierarchy (i. universal) Instead. likely that each person has a unique needs hierarchy • Shaped by our self-concept -- values and social identity McShane/Von Glinow OB 5e 11 © 2010 The McGraw-Hill Companies.e. All rights reserved .

social norms.Learned Needs Theory  Needs are amplified or suppressed through self-concept. and past experience  Therefore. strengthened or weakened through training) McShane/Von Glinow OB 5e 12 © 2010 The McGraw-Hill Companies. Inc. needs can be “learned” (i.e. All rights reserved .

All rights reserved . take responsibility • Want reasonably challenging goals Need for affiliation • Desire to seek approval. avoid conflict • Effective executives have lower need for social approval Need for power • Desire to control one’s environment • Personalized versus socialized power McShane/Von Glinow OB 5e 13 © 2010 The McGraw-Hill Companies. conform to others wishes. Inc.Three Learned Needs Need for achievement • Need to reach goals.

Inc. All rights reserved .Four-Drive Theory Drive to Acquire • Drive to take/keep objects and experiences • Basis of hierarchy and status • Drive to form relationships and social commitments • Basis of social identity • Drive to satisfy curiosity and resolve conflicting information • Need to protect ourselves • Reactive (not proactive) drive • Basis of fight or flight 14 Drive to Bond Drive to Learn Drive to Defend McShane/Von Glinow OB 5e © 2010 The McGraw-Hill Companies.

Inc.Features of Four Drives Innate and hardwired • everyone has them Independent of each other • no hierarchy of drives Complete set • no drives are excluded from the model McShane/Von Glinow OB 5e 15 © 2010 The McGraw-Hill Companies. All rights reserved .

3. Inc. Four drives determine which emotions are automatically tagged to incoming information Drives generate independent and often competing emotions that demand our attention Mental skill set relies on social norms. All rights reserved . and experience to transform drive-based emotions into goaldirected choice and effort 16 2.How Four Drives Affect Motivation 1. personal values. McShane/Von Glinow OB 5e © 2010 The McGraw-Hill Companies.

All rights reserved McShane/Von Glinow OB 5e 17 . Inc. personal values.Four Drive Theory of Motivation Drive to Acquire Drive to Bond Drive to Learn Drive to Defend Social norms Personal values Past experience Mental skill set resolves competing drive demands Goal-directed choice and effort Social norms. and experience transform drive-based emotions into goal-directed choice and effort © 2010 The McGraw-Hill Companies.

All rights reserved . Inc.Implications of Four Drive Theory Provide a balanced opportunity for employees to fulfil all four drives • employees continually seek fulfilment of drives • avoid having conditions support one drive more than others McShane/Von Glinow OB 5e 18 © 2010 The McGraw-Hill Companies.

All rights reserved . Inc.Expectancy Theory of Motivation E-to-P Expectancy P-to-O Expectancy Outcomes & Valences Outcome 1 + or - Effort Performance Outcome 2 + or - Outcome 3 + or - McShane/Von Glinow OB 5e 19 © 2010 The McGraw-Hill Companies.

Inc. All rights reserved .Increasing E-to-P and P-to-O Expectancies  Increasing E-to-P Expectancies • Assuring employees they have competencies • Person-job matching • Provide role clarification and sufficient resources • Behavioral modeling  Increasing P-to-O Expectancies • Measure performance accurately • More rewards for good performance • Explain how rewards are linked to performance McShane/Von Glinow OB 5e 20 © 2010 The McGraw-Hill Companies.

All rights reserved . Inc.Increasing Outcome Valences    Ensure that rewards are valued Individualize rewards Minimize countervalent outcomes McShane/Von Glinow OB 5e 21 © 2010 The McGraw-Hill Companies.

McShane/Von Glinow OB 5e 22 © 2010 The McGraw-Hill Companies. Bloomberg had special clocks installed in a dozen city government offices that count down how many days remain in his mayoral term. and he doesn’t want any of his remaining tenure wasted. All rights reserved . Inc.Making Every Day Count in NYC New York City mayor Michael Bloomberg has challenging goals to accomplish.

Goal Setting The process of motivating employees and clarifying their role perceptions by establishing performance objectives McShane/Von Glinow OB 5e 23 © 2010 The McGraw-Hill Companies. All rights reserved . Inc.

All rights reserved .Effective Goal Setting Characteristics Specific -.measureable change within a time frame Relevant – within employee’s control and responsibilities Challenging – raise level of effort Accepted (commitment) – motivated to accomplish the goal Participative (sometimes) – improves acceptance and goal quality Feedback – information available about progress toward goal McShane/Von Glinow OB 5e 24 © 2010 The McGraw-Hill Companies. Inc.

Credible – trustworthy source McShane/Von Glinow OB 5e 25 © 2010 The McGraw-Hill Companies. Inc.Characteristics of Effective Feedback Specific – connected to goal details 2. • Employee’s knowledge/experience • task cycle 5. Timely – to improve link from behavior to outcomes 4. All rights reserved . Sufficiently frequent 1. Relevant – Relates to person’s behavior 3.

All rights reserved . not their flaws • person’s interests. and competencies stabilize over time McShane/Von Glinow OB 5e 26 © 2010 The McGraw-Hill Companies.Feedback Through StrengthsBased Coaching Maximizing the person’s potential by focusing on their strengths rather than weaknesses  Motivational because:  • people inherently seek feedback about their strengths. preferences. Inc.

Multisource Feedback  Received from a full circle of people around the employee  Provides more complete and accurate information  Several challenges McShane/Von Glinow OB 5e 27 © 2010 The McGraw-Hill Companies. Inc. All rights reserved .

Evaluating Goal Setting and Feedback  Goal setting has high validity and usefulness  Goal setting/feedback limitations: • Focuses employees on measurable performance • Motivates employees to set easy goals (when tied to pay) • Goal setting interferes with learning process in new. All rights reserved . complex jobs McShane/Von Glinow OB 5e 28 © 2010 The McGraw-Hill Companies. Inc.

” says Sinegal.Keeping Pay Equitable at Costco Costco Wholesale CEO Jim Sinegal (shown in this photo) thinks the large wage gap between many executives and employees is blatantly unfair. “Having an individual who is making 100 or 200 or 300 times more than the average person working on the floor is wrong. whose salary and bonus are a much smaller multiple of what his staff earn. .

All rights reserved .Organizational Justice Distributive justice • Perceived fairness in outcomes we receive relative to our contributions and the outcomes and contributions of others Procedural justice • Perceived fairness of the procedures used to decide the distribution of resources McShane/Von Glinow OB 5e 30 © 2010 The McGraw-Hill Companies. Inc.

Organizational Justice Components Distribution Principles Distributive Justice Perceptions • Emotions • Attitudes Structural Rules Social Rules Procedural Justice Perceptions • Behaviors .

Inc.what employee receives (e. pay) Comparison other • person/people against whom we compare our ratio • not easily identifiable Equity evaluation • compare outcome/input ratio with the comparison other McShane/Von Glinow OB 5e 32 © 2010 The McGraw-Hill Companies.. skill) • outcomes -..what employee contributes (e. All rights reserved .Elements of Equity Theory Outcome/input ratio • inputs -.g.g.

Correcting Inequity Feelings Actions to correct inequity Reduce our inputs Example Less organizational citizenship Increase our outcomes Increase other’s inputs Reduce other’s outputs Change our perceptions Ask for pay increase Ask coworker to work harder Ask boss to stop giving other preferred treatment Start thinking that other’s perks aren’t really so valuable Compare self to someone closer to your situation Quit job Change comparison other Leave the field McShane/Von Glinow OB 5e 33 © 2010 The McGraw-Hill Companies. Inc. All rights reserved .

Equity Sensitivity  Outcome/input preferences and reaction to various outcome/input ratios  Benevolents • tolerant of being underrewarded   Equity Sensitives • want ratio to be equal to the comparison other Entitleds • prefer proportionately more than others McShane/Von Glinow OB 5e 34 © 2010 The McGraw-Hill Companies. All rights reserved . Inc.

Evaluating Equity Theory  Good at predicting situations unfair distribution of pay/rewards Difficult to put into practice • doesn’t identify comparison other • doesn’t indicate relevant inputs or outcomes   Equity theory explains only some feelings of fairness • procedural justice is as important as distributive justice McShane/Von Glinow OB 5e 35 © 2010 The McGraw-Hill Companies. Inc. All rights reserved .

Inc.Procedural Justice  Perceived fairness of procedures used to decide the distribution of resources  Higher procedural fairness with: • Voice • Unbiased decision maker • Decision based on all information • Existing policies consistently • Decision maker listened to all sides • Those who complain are treated respectfully • Those who complain are given full explanation McShane/Von Glinow OB 5e 36 © 2010 The McGraw-Hill Companies. All rights reserved .

Inc.Foundations of Employee Motivation McShane/Von Glinow OB 5e 37 © 2010 The McGraw-Hill Companies. All rights reserved .

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