Employee Motivation

Definition of Motivation: Factors which energize, direct and sustain employee behavior. • Motivation is goal directed behavior. • Motivation is NOT the same as Performance. • Performance = Motivation X Ability • Dimensions of Motivation
– Form – Direction - Duration - Intensity
Management 4030 - Employee Motivation

POV = The Business Owner – Agency Theory Management 4030 .Employee Motivation . POV = The Employee – Expectancy Theory – Equity Theory • Behavior Theory.Theories of Motivation • Cognitive Theories. POV = The Manager – Reinforcement theory • Financial Theory.

1964) • People’s Behavior results from conscious choices among alternatives.A person’s preference among various outcomes or rewards. Do I prefer to achieve a higher performance goal or more leisure time? • Instrumentality .Expectancy Theory (Vroom. If I study 2 hours every day for my finance class. Ex. Ex.A person’s belief that a certain level of performance will lead to certain desirable consequences.Employee Motivation . • Valence . will I earn an A grade? Management 4030 .

• Motivation = f (V. Ex. I.Employee Motivation . E > 0 Management 4030 . I.People select to pursue the level of performance they believe will maximize their utility (happiness). E) where V. Can I sell 12 houses this year? Will my team achieve “excellence” in the customer satisfaction survey? • Assumption .Expectancy Theory (Cont’d) • Expectancy .A person’s belief about whether a certain performance outcome is possible.

– Train employees for skill gaps so abilities are good.Expectancy Theory Applications for Managers • Managing Valence – Rewards must be attractive to each employee • Managing Instrumentality – High performance levels must result in attractive rewards (do I want to become a partner in the accounting firm?) – Performance levels must be set at a reasonable level of difficulty (ex. Management 4030 .Employee Motivation . Sales incentives) • Managing Expectancy – Coaching and frequent feedback increase expectancies.

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