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" Motivation

Chapter Five



Hyatt Hotels Corporation had a problem. It hired bright, energetic young people to help run its Hyatt Regency hotels. They worked for a few years as switchboard operators, as assistant housekeeping managers, or in other positions while learning hotel operations. Then they would desire faster promotions into management positions and, seeing the long road ahead, search for a new employer. . Part of the problem lay in the slow expansion of the company, which often slowed individual progression rates into management from the previous time span of three years to eight years or more. To prevent high turnover and capitalize on existing talent, Hyatt,started giving its employees opportunities to create new ventures in related fields, such as party catering and rental shops. The motivational impact of the autonomy provided by these entrepreneurial ventures enabled Hyatt to retail! over 60 percent of its managers, while increasing its rev, enues and providing valuable experience to its workiorcer' The Hyatt situation provides an opportunity for us to look both backward (at Part One) and forward (to this chapter and the next). Certainly the new program iu the hotels created a different organizational culture there; the executives in charge showed how supportive they were by searching for ways to retain valuable human resources; and they began to listen carefully to what employees were telling them to discover how to respond. Motivation" then, takes place within a culture. reflects an organizational behavior model, and requires coinmunication skills. Motivation also requires discovering and understanding employee drives and needs, since it originates within an individual. Positive acts performed for the organizationsuch as creating customer satisfaction ~:lfough personalized serYice~need to be rein, forced. And employees will be more motivated when they have clear goals to achieve. Needs, reinforcement, goals, expectancies, and feelings of equity are the main thrusts of this chapter.


As $iml)leas (hey may seem, In-aise and thanks still are the most neo-lecred socwl gestLIres in rhe workl)/o.ce. C
-Brenda Paik Sunoo

Expectancy (heory is practical, is simple, is mainstream ps)'chology, has been mound <1 long time, IS easy to al)/)l)" and-most important, it works. -Thomas L. Ouick '

.Although a few human activities occur without. motivation, nearly. all conscious ---.bJ:b.avjor is motivated, or c_a!!~eQ.. requires no motivation to-grow hair, but getting It a haircut does. Eventually, anyone will fall asleep without motivation (although parents with young children may doubt this), but going to bed is a conscious act requiring motivation. A manager's job is to identify employees' drives and needs and to channel their- behavior, to motivate them, toward task performance, The role of motivation in performance is summarized in the model of motivation in Figure 5-1.~rnal needs and drives create ~nsions that are affected by one's environment. For example, the need for food produces a tension of hunger. The hunperson then examines the surroundings to see which foods (external incentives) are available to satisfy that hunger. Since environment affects one's appetite for par, ticular kinds of food, a South Seas native may want roast fish, whereas a Colorado rancher may prefer broiled steak. Both persons are ready to achieve their goals, but they will seek different foods to satisfy their needS) This is an exarnple of both indi-

The Motivational Process Motivational Drives Need Category Systems .Behavior Modification and Reinforcement • Goal Setting and Its Effects .The Expectancy Model of Motivation





Equity Comparisons

vidual differences and cultural influences injction. .As we saw in the formulas in Chapter l~otential perfonnance (P) is a product of ' ability (A) and motivation (M). Results occur when motivated employees are provided ~ith the opportunity (such a"';'the proper training) to perform and the resources· (such as the proper tools): to do so, The presence of goals and the awareness of





Part Two


and Reward



Chapter Five'



~ ..
~. Achievement It ~, Affiliation". A drlve .A A

A model of motivation

to accomplish


objectives and get ahead


drives 105

drive to relate to people effectively drive to influence people and situations
that their employees sometimes and make for will also be oriented it difficult "average" employees toward achievetheir

t:: Power. (.


agers, they, tend 'to expect ment. These high to


for achievement-onented to satisfy

'inanager's incentives release it, rewards to satisfy one's needs are also powerful is productive rewards If those motivational factors leading lakes liming, to the





is a drive influence provide eration. tend to relate to people on a social basis. Comparisons. employees with affiliation-motivation employees

of effor.,

'.'/he.. an employee

and rhe organization in nature, are satisfied.

note of
and new


will be distributed.

are appropriate

,.of achievement-motivated . how the two patterns when their supervisors



the employee's original needs and drives may emerge and the cycle will begin again')

At that lime.

behavior<A~~l~evement~oriente~ detailed evaluations of their better when f.,chievement-motivated for personal friends to select

peopl~ .work _hard~r work behaviorxBut ~for~~eir assistants receive favor~ who !I1ner select They

Comparing achievement and _:zffiliarion drives

II should be apparent, therefore, that an important starting point lies in understanding employee needs. Several traditional approaches 10 classifying drives and needs are presented firsl{lhese models auernpt 10 help managers understand how employees' internal needs affect their subsequent behaviors'<These approaches employee are logibehavior cally followed by a discussion of a systematic <vay of modifying Ihrough the use of rewards the: satisfy those needs.


with affiliation



they are complimented people feelings them.

able attitudes ."are technically _·.;fu[;;;:;;;;sfro;;; _.relatiOllship,' l)1anagers _managers. . together, usual ficulty

and coo capable, being with

with 1 ttle regard with friends, '. needs



are affiliation-motivated

to surround -.

and they want the job freedom may have difficulty

to developlhose .. being usually effective results

strong a high work

for affiliation for positive where on the social directing .

People ronment erated lend 10 develop in which

certain' motivational and these drives of the interest drives affect as a product of the cultural view envi-

Although managerial




in a cooperative the way people
their jobs was genprocess assigning

environment things.

employees dimension



with the difwork "

overemphasis tasks,

may interfere and monitoring

they live,

of getting

done.Qvffiliation-oriented work

may have

and approach a classification out their drives

their lives. Much of David . scheme elements

in these patterns

of motivation



by the research significance and books. among

C. McClelland of Harvard University." He developed highlighting three of the more dominant drives and pointed
His studies in which revealed they grow that people's up-their motivational family, patterns school, tend to


Power Motivation
Po~er~ mO!!,:a_tion ~s ~otivated peopteWlsnto a_ di-i~e to influen~e peop~e_~n?_~ha~ge create an Impact on their orgaruzanons this' power make is obtained, situations. (P?wer, and are;wihmg constructively ..

to motivation. of the culture nations, because In most


church, be' strong

one or two of the motivational they have grown for achievement,

the workers focused

up with similar affiliation,

backgrounds. and power

..t~ke _.

risks to do so) Once Power-motivated

it may be used either _i~:.~eir d!J::-~~

Three drives

McClelland's (see Figure


on the drives

_.or destructively. people excellent


<Ai:hiev~ment individual success. the rewards

is a drive some people have to pursue and attain goals. An of to achieve objectives primarily .' and advance . up the ladder

_'!Lona,!ppwer instead of personal power. ~o.'}.c:.I_wn!,er t,he:.needto mfluen,ce is 'iithers' behavior for the good of the whole "organization. People with this need seek - power drives zational throuah are toward leader. legitimate and therefore personal means, are power, rise that to leadership by others. tends person positions However, through successful. organi.: performance~ accepted if an employee's

I'IS_~.r;!! ..



lnstitutionai versus personal power


with this drive wishes Accomplishment that accompany it)

is seen as important

for its own sake, not just for They wo.rk

to be an unsuccessful

Characteristics of achievers

,..I1~qer ~l:e~.l~ex ;~!&~ly~eA~~lt _tbe~.)!'.i!I;~~c5').~.~ ~r~~.I!"!o.r,!..~~,u:..eFf0rt.s ,:,:ry~n, •• :i tli\:r~j~.Qi;Jy):qlXlerate:'risk:of failure;' arid when they' receivespecific feedb.a~k.a~<?!l~

\A"Eijr!J~~~~:<;b~.~~!~~~~E~' (te_~~_~ ~~~i~~e~e·n·i-o;;e~te.d.~j~?

Managerial Application

of the Drives

: .~9:-w~~~~~%»'t~,,qifferences a'woog. tb~ 'three moirv'atiooa,J drives~re'P)~_r~?~F.~~.~~~ .. "."'r.,........_ W rk attitudes of each em 10 ee: The can then de2.l Wltli employtbejr'piiSfpe:ffoffii3.ii,c2F ,~.~ti(;t'-liig~,¥~~fQr;~~h.ieX¥'ID.iliC@e~te~p'oj{sibilfiY >'~ d;fferent!y-according_tQthe.§.tronge_SJ:..mQUY£..ti.Q!!.al drive. that they identify·in eae ~,rot'tnHr"'aCtionSj".ffid' u '&lntrbl' 'tii~iI:-&stiiiy,f' seek re'gulai feedb~k;'arid 'enjoy ':~~~giciv6e<-t~i~)/~Y~t!le5\i~.q.i~Q__~_Il:J!!1\!gic~te.s in wi,~1:t ea.~lt ..\?mpl?~~~aC5?!ding : beingp¥:f~6t4~~~~{achi~~;:{;~;rm;6~gh'indiv1duaro~'2~iieCifve'e~ii~slri1~one employee said; ''My supervisor talKs to me





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, Part Two Motivationand Reward Systems

.j. .' . ~;
Motivation Chapter Five


in my language." Although various tests can be used to identify the. strength of . .Herzberg. and Alderfer each build on the distinction between primary and secondary employee drives, direct observation of employees' behavior is one of the best rneth- . ·needs. Also, there are some similarities as well as important differences among the three approaches. Despite their limitations, all three approaches to human needs help ods for determining what (hey will respond to. create an important basis for the more advanced motivational models to be discussed later.




( When

Primary needs

Secondary !leeds.

Needs First-level needs involve basic survival and include physiclogical needs for food. air, water. and sleep. The second need level that tend's to dorninate is bodily safety (such as freedom from a dangerous work environment) and eco'FIGURE 5-3 There are various ways to classify needs. A simple one is (I) J?~2~c:_E!!y_sl~.'!!...~e.e_<ls. nomic security (such as a no-layoff guarantee or a comfortable retirement pian). These callfg_p.riiti_a~y_l!e~s, and (2) social and psychological needs. called secondary A comparison of two need levels together ru-e typically called lower-order needs, and they are similar needs. The physical needs include food. water. ccx, sleep. air. and reasonably comto the primary needs discussed earlier. . . Maslow's, Herzberg's, fortable temperature. These needs arise from the' basic requirements of life and ..are aRd Alderfer's models important for survival of thehuman race: They rue. therefore. virtually universal. but they vary in intensity from one person to jIIl.;.the;. For 'example, a child needs much Herzberg's. Model of Maslow's Alderfer's more sleep iha;; -an older person. " hierarchy of needs two-factor model .E-R-G model . Needs also are conditioned by social practice. If it is customary to eat three meals a day, then a person tends to become hungry for three. even though two might be adequate. If a coffee hour is introduced in the morning. then that becomes a habit of appetite satisfaction as well as a social need. " .. ,... ,,~!'ce.2!ld~ ..n_eeds ar<e...m.ore vague ,~cause they represent needs ofthe.mindand spi!:!t...!'!.t!J.~Lth~_qf_tI!e..phy.~ical.b9dy:~y of these needs are deveIcrped as ciop~_ rriature,' ExampleS' areiieeds that 'pertain to self-esteem •.sense- of duty~ com~!:itiye:,_ i.~~~,~;cli.:assertiOn~-ilnd io-gjYipg._6ef;;ngi;g:-.;;ct::i.~~j_y.!r;£tii2!i:? ~_!b.e,.o~at cQ!!lpJicate._the f!1Q!.i~ation~ff2!:ll'....2L!!!_3£i~g~~.'.!i~ar)i.~J_iY/ .ac:!i9_1!_iha!,,!l1~n~g~menUakes u affect secondary needs; tJf', wi Types of Needs

a machine malfunctions. people recognize that it needs something. Managers try to find the causes of the breakdown in an analytical. manner based on their knowledge of the operations and needs of 'the machine. Like the machine. an operator who malfunctions does so because of definite causes that may be related to needs. In order for improvement to occur. the operator requires skilled and professional care just as the machine does. If we treated (maintained) people as well as we do expensive machines, we would have more productive. and hence more satisfied. workers. First we must identify the needs that are important to them."

Maslow's Hierarchy
According to A. H. emerge in a definite ably well satisfied, Maslow's hierarchy 5_35 This hierarchy tions.

of Needs
human needs are' not of equal strength, 'and they In particular. as the primary needs become reasonplaces more emphasis on the secondary needs. focuses attention on five levels. as shown in Figure presented and then interpreted in the following sec-

Maslow. sequence. a person of needs is briefly






the-effect; of: any. proposed qct!(J1J~9.'n,.lh§2 s~i:oJJj:Ui_rY~needs l. o





Here are seven key conclusions about secondary needs. They: • Are strongly conditioned by experience • Vary in type and intensity among people • Are subject to change across time within any individual • Cannot usually one another be isolated, but rather, work in combination and influence

• Are 'often hidden from conscious recognition ~ Are vague feelings as opposed to specific physical needs ; 'Influence behavior
~.~.~. -. .

.~:LWhereas "the three motivational drives identified earlier were not grouped in. any' particular pattern, the three major theories of human needs presented', in: the_fQilQ}Vjj .ing sections attempt to classify those needs. At leastynpli9i~y; the theories ,pf-Ma$,I9~;·.


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Part Two

MociVQcion and Reward Systems




Higher,Order Needs

There are three levels of higher-order need~. The third level in the hierarchy concerns love, belonging, and sociai' involvement at work (friendships and compatible associates). The needs at the fourth level include those for esteem and status, including one's feelings of self-worth and of competence. The feeling of cornpetence, which· derives from the assurance of others, provides status. The fi~th-level need 'is self-actuallzation, which- means becoming' all that one is capable of becom/ ing, using one's skills to the fullest, and stretching talents to the maximul-r_;> .

High positive feelings

Effects of maintenance .and motivational factors


Interpreting the Hierarchy of Needs Maslow's need-hierarchy model essen· tially says that people have needs they wish to satisfy and that gratified needs are not as strongly-motivating as unmet needs. Employees are more enthusiastically motivated by what they are currently seekillg than by receivillg more of what they alreadv have. A fully satisfied need will not be a strong motivator. Interpreted in this way, the Maslow hierarchy of needs has had a powerful impact on. contemporary managers, offering some useful ideas for helping' managers think about motivating their employees. As a result of widespread familiarity with the model, today's managers need to r:
• Identify and accept employee need: Recognize that needs may differ among employees • Offer satisfaction for the particular needs currently unrnet • Realize that giving more of the same reward' (especially one which satisfies lowerorder needs) may have a diminishing impact on motivation Limitations The Maslow model also has many limitations, and it has been sharply criticized. As aphilosophical framework, it has been difficult to study and has not been fully. verified, From a practical perspective, it is not easy to provide opportunities for self· actualization to all employees. In addition, research has not supported the presenceof all five need levels as unique, nor has tbe five-step progression from lowest to highest need levels been established. There is, however, some evidence that unless the two lower-order needs (physiological and security) are- basically satisfied, employees will not be greatly concerned with higher-order needs." The evidence for a more Limited . number of need levels is consistent with each of the two models discussed next.


employees only to a neutral state~The factors are noi strongly motivating. These potent dissatisfiers are called hygiene factors, or maintenance factors, because they Hvgiene factors must not be ignored. They are necessary for building a foundation on which to maintain a reasonable level of motivation in employees. Other job conditions operate primarily to build this motivation, but their absence rarely is strongly dissatisfying. These conditions are known as motivational factors, Motivational [actors motivators, or satisfiers. For many year's managers had been wondering why their custodial policies and wide array of fringe benefits were not increasing employee 1110tivation. The idea of separate motivational and maintenance factors helped answer their question, because fringe benefits and personnel policies were primarily maintenance factors, according to Herzberg. Figure 5-3 shows the Herzberg factors. Motivational factors such as achievement and responsibility are related, for the most part, directly to thejob itself, the employee's perfor,!Tl_a_!1ce, the personal recognition and growth that and employees experience. Motivators mostly are job-centered; they relate to job, COllt~!l.t. On the other hand, maintenance factors are mainly related tQ_jQ!L~Q!1_ti2'.!" because theyare mor,,-~~~e environ~Lsurr:Ql!D.,!}g_~jQ.b. This difference between JObcontent and job context is a significant one.,)t shows that employees ru-e motiVatedprimarily by what they do for themselves. When they take responsibility or gain recognition through their own behavior, they ar-e strongly motivated. '\ Intrinsic and Extrinsic Motivators The difference between job content and job COntextis similar to the difference between intrinsic and extrinsic motivators in psy- . chology.JQ_t;I:insic.motiyatp~ are internal rewards that a per-son feels. when performIntrinsic and extrinsic ~g a job, so there is a direct and often immediate connection between work and rewards. motivators An employee in this situation is self-motivated.jfixtrinsic motivators are external '. ~Wards that occur apart from the nature of work, ~~oviding no direct satisfaction at the.: ~e the work is performed. Examples are retirement plans, health insurance, and vaca-' ~ns:, Although ~mplOyeeS value these items, they are not effective motivators}

Job Content and Context





On the basis of research with engineers and accountants, Frederick Herzberg, in me 1950s, developed a two-factor model of motivation." He asked his subjects 10 thint of a time when they felt especially good about their jobs and a time when they felt especially bad about their jobs. He also asked them te describe the conditions that led to those feelings. Herzberg found that employees: named different types of conditions that produced good and bad feelings. That is, if a feeling of achievement led to a good feeling, the lack of achievement was rarely given-as cause for bad feelings. Instead, some other factor, such as company policy, was given as a cause of bad feelings. • Maintenance and MotivatianaI Factors Herzberg concluded that two separatesets of factors influenced motivation. Prior to that time, people assumed that rnotivation and lack of motivation. were merely opposites of one factor on a continuurr! Herzberg upset the trad'itiona! view by stating that certain job factors, such as job security and working conditi0~S,' dissatisfy employeesprimarily when the conditions are absent. However, as shown in Figure .5':"4,\lheir presence generally brings
.' ,_, .'-'. :: :.;1:

Interpreting the Two-Factor Model Herzberg's model provides a useful distinction between maintenance factors, which are necessary but not sufficient, and motivational factors,' which have the potential for improving employee effort. The twO-factor model broadened managers' perspectives by showing the potentially powerful role of intrinsic rewards that evolve from the work itself. (This 'conclusion ties .~.with a number of other important behavioral developments, such as job enrichment,

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~., .~ .~ :



Part Two


and Reward Sysrerru




empowerment, chapters.) wide range

self-leadership. of factors

and quality should at least

,of work life, which now be aware a neutral work their that

are discussed they cannot

in later neglect as signifi-

" person .,\ somewhat 'attained.

frustrated level limited but

at either and then in their are

of the progress

two again,





to concentrate are is 111 needs not only


managers that create


. on a lower ':. are unlimited


whereas each time

the first two levels some satisfaction

environment. will serve

In addition;

requirements further

for satisfaction, awakened

the growth

unless hygiene cant distractions The Herzberg sally apolicable, and upper-level vational nance factors.

factors are reasonably [Q workers, model, because like Maslow's, employees.




has been widely The model


It is .not univerprofessional, the motiare mainteand difof

it was based on and applies

best to managerial, since these

Comparison of the Maslow,
The similarities among the three models , in Figure

Herzberg, and Alderfer
of human needs are quite apparent,



also appears to reduce to many only and managers general motivators


of pay, Status, and relations

with others, distinction people, also model.

This aspect of the model factors factors factors (see Figure

is counterintuitive

ficult for them to accept. Since there is no absolute the two major maintenance maintenance meaning may be motivators others, Finally, approach to some the model (asking there


the effects tendencies;

5-4), the model outlines

may be and.unfabe an

as shown 5-3, but there are important contrasts, too, Maslow and Alderfer focus on the internal needs of the employee; whereas Herzberg also identifies and differentiares the conditions (job content or job context) that could be provided for need satisfaction, Popular interpretations .of the Maslow and Herzberg models suggest that in 'inooern societies many workers have already satisfied their lower-order needs, so they
are now existence tration indicate useful motivated needs. mainly (The by higher-order relatedness needs and motivators. will cause whether needs, Alderfer renewed suggests interest in


to be method-bound, of favorable

that oidy Herzberg's job experiences)

for self-reports


iliat the' failure

to satisfy

or growth of unsatisfied



the two-factor

In Sh0l1, there 'may

consequences coping,

they produce

frusfind it


of two factors when in reality

is only one factor,

or constructive that before to discover

are discussed

in Chapter

15,) Finally.

all three models
'at the time. and applica-

Building some E-R-G upon

E-R-G Model
earlier need models just three levels in satisfying (primarily Maslow's) and seeking to overcome that employphysj"

a manager which need

tries to administer a foundation

a reward,

he or she would employee

or needs dominate> q panicular

ill this way, all need models
tion of behavior modification,


for the understanding

of their weaknesses, model-with interested

Clavton Alderfer


a modified

need hierarchy-the

(see Figure

5_3)9 He suggested



ees are initially!:Jen.~~!s a~,e_rnvolve • t~~~~~,:e


necd_§, wh.ic:;tJ,combine

elatedness rowth

ologica~,ll_~?~~<:.ll_IjtY.. being


Pay, physi~~[" working

can. a~~!ddre~ away

conditions, job security.~d rieed7'~elat~d~esSJlt:.C_¢; .are at the next level
itl(Growth needs are mthe third categop;

<-The models may motivate internal The state major

that They with have been discussed up to this point (nature) inner are known of items as that they focus or; the content to the person's 'models

un.derst?:9_g_al),d_~'cc,epte,d. by pe()pl~~ve,belo~.j]n.~~d from setf-ei~e~!'_l_~.';.d ~~!::_a~~~alization,-

of motivation a person, of needs difficulty


content theories of motivation because
relate content determines to observation

Content theories


self and how that person's is that the needs measurement about esteem people needs

of motivation or to precise simply knowing to measure what interest by managers for mon-

The president of a chain. of clothing stares thought things were going well. The company was about 10 add' ten new stores 10 its ninety outlets as part of an ambitious corpora te expansion program, One day the president's key marketing manager walked into the office and announced thar he hated his job, "What could he possibty want?" the president thought, as she invited him to sit down and talk about his needs and aspirations, "It shouldn't be job security, or better working conditions, Perhaps he feels the need to learn new skills and develop executive capabilities," The could identify between existence his work impending be structured which their needs, through level salaries despite conversation around or levels could between seem the president model. For and the marketing a large manager disparity with

have are not subject

'itoring purposes:
or to assess needs tion')As incentives, organizations 'Vation, since " does

It is difficult, suggest results,

for example, to managers careful

an employee's

how they change not directly there on intended

over time, Further,

an employee's models that rely of ,iIi work

they should

do with that informa-

a result,

has been considerable behavior

in motivational and systematic which evolved or OB Mod,

more heavily

measurement, modification,


Organizational of the principles they provide' ;,


is the application

OS Mod Process theories



The president example,

may first wish to

of behavior

to be satisfied. salary-and-bonus travel Finally,

"of B. E' Sldnner.IO'OB

Mod and the' next seve~al models 'are process theoriesoi perspectives on the dynamicsby which ' employees

can be

lead the marketing and heavy

manager as the stores assuming

to be, frustrated prepared


a respectable


Or his immersion to open

in f.,~otivated"

long hours



have left his relatedness

needs unsatisfied,

he has mastered

his pres'

ent job assignments, he may be experiencing capabilities and grow into new areas, In addition consistent E-R-G Instead, or even model to condensing does not Maslow's five with research, it accepts that just the E-R-G assume model

the need to develop need levels in other might into

his nonmarketing ' that level are morl the For example,


Law of Effect
Mod is, based on the idea that behavior, depends-onto control, or at least affect;' a number

it is 'possiOlI!'fdrriiinagers

its consequences;"the;efore" of employee behavby favorables>' that isaccompanied'
law of effect~.s~

three from'

differs levels


_ ior~, bYI?~,~u},~~,~,~e~~.e~ ;'£'~~~m\~.e.Sj9.~~",~~I~f~:,h.eavilY_Q~.:l~~ ,whIch ~tates that a person tenrs" to 'repeat behaVIor that,lS accomparued , s~sequences (reinforcement) and tends not to repeat behavior'

as rigorous that all three levels

a progression be active.

to level, that!

bPET1"i;r (,_'t-iDtttO,',\N9 , "

the likelihood

be active

at any time>

one of the bigher


It also suggests


~'Qf 9J;&..M~~:th,~;1iiaiiage(_jjj~!ii~~i!l:ile-,to"~:some ~';~~;i~;'~)~~~~;" """ ..~.. (',-

:'\9i nnfaYQrabJe'conseqnenceS"),To/q

conditions are requited

for sl1cce~s@~iipiJlic,atl6n




Part Two

Motivation and R""",d S"ums





.perceived by the:employee} and 'then must be, able' to administer them in such a way that tJie~empldy&i\';ill the connection between the ~to be affected and the' consequences.; ', ,, _,.J



; ...'



Some professional sports have developed reward systems that appear to build on these principles. for example, on the Ladies Professional Golf Association (LPGA) tour, only those players who complete all four rounds of a tournament and have the better total scores collect checks when they ,are done. Furthermore, the winner's check is nearly double what the second-place finisher receives. The LPGA has identified money as a favorable consequence and tied its distribution directlyto the level of short-term performance by its members. This system presumably encourages the players to participate in numerous toumarnents, play all four rounds, and excel.' . . Focus on consequences The law of effect comes from learning' theory, which suggests that we learn best' under pleasant surroundings. Whereas content theories argue that internal needs lead to behavior, OB Mod states that external consequences tena 10 determine behavior. The advantage of OB Mod is that it places a greaterdegree of control. and responsibility, in the hands of the manager. Several firms, including Frito-Lay, Weyerhaeuser, and B. F. Goodrich, have used various forms of behavior modification successfully.

<Behavior is encouraged primarily through positive reinforcement. PoSjtive'.,~i~~ Positive reinforcement forcement provides. a favorable, consequence that-encourages repetition of abehay,W ,'.:;orl An employee, for example, may find that when high-quality work is done, the '. supervisor gives a reward of recognitiori. Since the employee likes recognition, behav, ior is reinforced, and the employee tends to want to do high-quality work again. The reinforcement always should be contingent on the employee's correct behavior. The variety of rewards available to managers is almost limitless, not always expensive, and often touching to the recipients. Here are a few examples: Blandin Paper Company emphasizes recognition from supervisors plus rewards such as T-shirts; coffee mugs, and gift certificates to be used at local restaurants. . Pfeiffer-Hamilton Publishers invites all employees to a "celebration of creativity" party each year and also gives each employee a free autographed copy of every book the company publishes. Grandma'S Restaurant chain not only gives ten-year employees a gold, watch but also creates placernats for its tables with the employee's picture and background information on them. '-"
Other companies advocate the use of personal notes praising an employee's performance.



OB Mod places great emphasis on the use of rewards (see the model of motivation in Figure 5-1) and alternative consequences to sustain behavior. Before using OB Mod, however, managers must decide whether they wish 10 increase the probability of a person's continued behavior or to decrease it. Once they have decided on their objective, they have two further choices to make which determine the type of consequence to be applied. First, should they use a positive or a negative consequence? Second, should they apply it or withhold it? The answers to those two questions result in four unique alternative consequences, as shown in Figure 5-5 and in the discussion that follows. FIGURE 5-5

provide workers with a free lunch on their birthdays, or place the signatures of employees inside the products they produce. The key is to make the rewards as personal and spontaneous as possible." Shaping is a systematic and progres~ive application of positive reinforcement.' It' occui:swnen:nore frequent, or more powertu!,felnforceme'nts are successively given as the employee comes closer to the desired behavior. Even though the completely correct behavior does not yet occur,.it is encouraged by giving reinforcement for behavior in the desired direction. ,Shaping is especially useful for teaching complex tasky An illustration of shaping is the training procedure used by a supervisor in a retail,store..' The store was so small that it had no centralized training program for sales clerks, so all "sales training was a responsibility 'of the supervisor. In the beginning, when a new salesclerk did not know how to deal with customers effectively, the supervisor explained the proper sales procedure. The supervisor observed the clerk's behavior, and from time to time when the clerk showed improved, behavior in some part ofthe procedure, the supervisor expressed approval and encouraged the employee. Since this -vas favorable recogniLionfor the employee, it helped shape behavior in the correct direction. .




OB Mod uses four alternative consequences

Negative relnforcement occurs when be~.av}_,!.r'is .~~c,0!11Ii~.~~. y_r,e1!l,?vdlof ~1 b Negative reinforcement , unfavorable consequence; therefore, it is not the same as punishment, which normally' :adds somet1iln·g-,tinfav~rable. Consist~nt with the law pf effect, behavior responsible' for the removal' of something unfavorable is repeated 'when that unfavorable state is again encounteredj'An example of negative reinforcement is the experience of a jet aircraft mechanic who learned that if she wore noise suppressors over her ears, she could prevent discomfort from the jet engine noise-the unfavorable consequence; this reinforcement encouraged her to wear the proper noise equipm~nt:, -, Punishment is the administratioI]. of all' unfavorable consequence that discourag~ ';:Punishment ',a,~ertain1behavior"'Although punishment may be necessary occasionally to discour... :age' an undesirable behavior, it needs to be used with caution because it has certain ". limitation~ It does not directly encourage any kind of desirable behavior unless the person' receiving it is clearly aware of the. alternative path to follow; it maycause managers acting as punishers ,to become, disliked for their disciplinary actions; and it could happen that people who are punished may be unclear about what specific part of jheir behavior is being punished.) .
. : ..












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Morioorion arid

Reward Syscerns

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. Motivation




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Collins Food International used beb~vior modification with clerical employees in its accounting department.". One of the items selected for modification was billing error rates. Management measured existing error rates and then met with employees to discuss and set goals for improvement. It also praised employees for reduction of errors, and It reported error results to them regularly. Employees in the accounts payable department responded by reducing Behavior philosophy, the' strong people error rates from more. than 8 percent to less than 0.2 percent. modification methods, power of desired assumptions has been criticized (see "What behavior earlier on several modification grounds, Are Reading"). people including Because its of force and

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FIGURE lfie Kohn argues that' corporate incentive plans not only fail ) work as intended but also undermine the objectives they tended to achieve. Thisresult is due, he suggests, to inaderate psychological assumptions on which' reward. systems e based. Explainirighis 'position in Punished by Rewards, 3hn argues: Rewards punish people-their use confirms that someone else is in control of the employee; additionally, some people do not get the rewards they were hoping for. Rewards rupture relationships-they magnify the effects of power differences, and they create competition where teamwork and collaboration are desired. Rewards ignore reasons-they relievemanagers from the urgent need to explore why an employee is .effective or


• Rewards discourage risk taking-employees tend to do exactlywhat is required to earn the reward, and'not much

• Rewards undermine interest-they distract both manager and employee from consideration of intrinsicmotivation. Kohn isoften asked, "But don't rewardswork>" "Absolutely," he replies. "They motivate people to get rewards" but not to do anything more than the minimum.
Stars. Incentive Plans. A s, Praise. and Other Bribes, Boston: Houghton-Mifflin, 1993.
Source: Alfie Kohn, Punished by Rewards: The Trouble with Gold

1. 2. 3. 4. S. 6, 7. 8. 9. 10.

Don't imply that employees are incompetent. Don't talk down to them about their jobs. Don't find petty faults with their results. Don't criticize their work in front of their peers. Don't belittle the importance of their jobs or tasks. Do praise them for .their appropriate efforts. Do Do Do Do ask for their input. listen carefully to their ideas for improvements. share positive feedback froin their peers with them. provide formal recognition for their achievements.

Tips for building employee self-efficacy

to the commitment

the goal-selling process. A public statement of performance intentions also contribul~s of employees to their achievement. ".

the preparation of action plans for goal attainment. Goals appear in our model of motivation (see Figure 5-1) be/ore employee performance, which accents their role as a cue to acceptable behavior. Goals are also useful after the desired behavior, as managers compare employee results with their aims and explore reasons for any differences. Goal setting works as a motivational process because it creates a discrepancy bel ween current and expected performance. This results in a feeling of tension, which the employee can diminish through .future goal attainment. Meeting goals also helps satisfy a person's' achievement drive, contributes to feelings of competence and self-: esteem, and further stimulates personal growth needs. Individuals who successfully achiex e goals tend to set even higher goals in the future. A major factor in the success of goal setting is self-efficacy. This is an internal belief regarding one's job-related capabilities and competencies. (Self-efficacy is different from self-esteem, which is a broader feeling of like or dislike for oneself.) 13 Self-efficacy can be judged either on a specific task or across a variety of performance duties. If employees have high self-efficacies, they will tend to set higher pers.ona! goals under the belief that they are attainable. The first key to successful-goal setring-is to build and reinforce employee self-efficacy (see the practical tips in Figure 5-7): Following this step, managers should try to incorporate the four essential elements of goal setting, which are discussed next.

Goals need to be as specific, clear, and measurable as possible so that employees (viii know when a goal is reached. It is not very helpful to ask employees to improve, to work harder; or to do better, because that kind of goal does not give them a focused target to seek. Specific goals let them know what to reach for and allow them to measure their own progress.


Perhaps surprisingly, most employees work harder when they have dilficult goals to accomplish rather than easy ones. Hard goals present a challenge that appeals to the ac+ievernent drive within many ·employees. These ·goals must. however, still be achievable. given the experience of the individual and the resources available. The motivational value of a chalIeii-ge' as demonstrated by a motel owner in a small city. w Richard Fann was concerned about the time required by housekeepers to change the beds
when (hey cleaned to the housekeepers a room. The average

time used was about seven minutes, motions were only
IT ...

including in him.

numerous trips around the bed
to reduce

strip the sheets and replace the covers. Suggestions made
:gil."::J successful

their wasted

speeding up the process. Finally. Richard decided to stage a contest and pit the housekeepers against one another. Not only did the strategy work. but the results overwhelmed

The winning employee was able to change a bed in less than one minute and to do this by staying on one side' "Why hadn't they done this earlier?" Richard inquired. "Because you didn't challenge us." they responded.


of Goal Setting

Goal setting, as a motivational tool, is most effective when all its major elements are present. These are goal acceptance, specificity, challenge, and performance monitoring and feedback. Each is discussed briefly in 'the following sections.

Goal Acceptance Effective goals need to be not only understood but also accepted. Simply assigning goals to employees may not result in their commitment to those goals,' especially if the goalwill be difficult to accomplish. Minimally, supervisors need to explain the purpose behind goals and the necessity for them. A more powerful method of obtaining acceptance is to' allow the employees to participate in

Monitoring and Feedback Even after employees have participated in setting well-defined and challenging goals, two other closely related steps are important to complete the process. Performance monitoring-observing behavior, inspecting output. or studying documents of performance indicators-provides at least subtle cues to employees that their tasks are important, their effort is. needed, and their contributions are valued. This monitoring heightens their awareness of the role they play in contributing to organizational effectiveness. Simply monitoring results, however, may not be enough. Many employees are hungry for information about how well they are performing. Without performance feedback-the timely provision of data or judgment regarding task-related results-semployees will be working in the dark and have no true idea how successful they, are. A ball team needs to know the score of the game; a trapshooter .needs to see the clay










Part Two

Morivation and Reword Systems




pigeons break into pieces; and the woodchopper needs to see the chips fly and the'. pile of firewood grow. The same can be said for a team on the production line or a retail salesclerk. Performance feedback tends. to encourage better job performance, and self-generated feedback is ali especially powerful motivational tool.' Researchers examined the financial performance of 437 companies
setting goals, giving feedback. reviewing results, and rewarding

explore the effects of .
They discovered


that firms with these performance management programs had greater profits. better cash
Aow, and stronger stock market performance than those that did not have them. Further, in a comparison of the before and after performances of the firms with performance management, the average shareholder return increased by 25 percent and productivity gains averaged 94 'percent! l-l



A widely accepted approach to motivation is the expectancy model, also known as' expectancy theory, that was developed by Victor H. Vroom and has been expanded and relined by Porter and Lawler and others.'s Vroom explains that motivation is a product of three factors: how much one wants a reward (valence). one's estimate of the probability that effort will result in successful performance (expectancy). and one's estimate that performance will result in receiving the reward (i,~::trumentality). This relationship is stated in the following formula: Valence
X Expectancy X Instrumentality Motivation

The Three Factors
Reward preference Valence refers to the strength of a person's preference for receiving a reward. It is an expression of the amount of one's desire to reach a goal. For example, if an employee strongly wants a promotion, then promotion has high valence for that employee. Valence for a reward is unique to each employee and thus is a reflection of the concept of individual differences introduced in Chapter I. An individual's valence for a reward is conditioned by experience, and it may vary substantially over a period of time as old needs become satisfied and new ones emerge. It is important to understand the difference between the implications of need-based nlbc!els of motivation and' the idea of valence in the expectancy model. In the need"based models, broad generalizations are used to predict where a group of employees may have the strongest drives or the greatest unsatisfied needs. In the expectancy model, managers need to gather specific information about an individual emplovee's preferences among a set of rewards and then continue to monitor changes in those preferences. Since people may have positive or negative preferences for an outcome, valence may be negative as well as positive. When a person prefers not attaining an Outcome. as compared with attaining it, valence is a negative figure. If a person is indifferent to an outcome, the valence is O. The total range is from -I to + I, as shown in Figure 5-8. Some employees will find intrinsic valence in the work itself, particularly if they have a strong work ethic or competence motivation. They derive satisfaction directly from their work through a sense of completion, of doi ng a task right, or of creating something. In this instance, outcomes are largely within the employee's own control and less subject to management's 'reward system. These employees are ;1 self-motivated.

Expectancy Expectancy is the strength of belief that one's work-related effort will . result in completion of a task. For example, a person selling magazine subscriptions .'door-to-door may know from experience that volume of sales is directly related to the Effort ~ performance ~umber of sales calls made. Expectancies are stated as probabilities-the employee's probability estimate of the degree to which performance will be determined by the amount of . effort expended. Since expectancy is the probability of a connection between effort and performance, its value may range from 0 to I. If an employee sees no chance that effort will lead to the desired performance, the expectancy is O. At the other extreme, if the employee is totally confident that the task will be completed, the expectancy has a value of I. Normally, employee estimates of expectancy lie somewhere between the two extremes. One 'of the forces contributing to effort-performance expectancies is the individual's self-efficacy. Employees with high levels of self-efficacy are more likely to believe that exerting effort will result in satisfactory performance. High self-efficacy . creates a high expectancy assessment. In contrast to high self-efficacy, some employees suffer from the imposter phenomenon. Imposters believe that they are not really as' capable as they appear ...III/posters to be and, consequently, fear that their incompetence will be revealed to others. They are filled with self-doubt, afraid to take risks, and seldom ask for help. Because they believe they lack the necessary competence, they are also likely to doubt that any amount of their own effort will result in high performa~ce. Imposters, therefore, will predictably have low expectancy assessments for themselves. The self-efficacy and imposter concepts demonstrate the importance of . understanding broad characteristics of individual employees as a predictor of their specific motivational drives.
Instrumentality represents the employee's belief that a reward will be received once the task is accomplished. Here the employee makes anomer subjective judgment about the probability that the organization values the employee's performance and will administer rewards OTt a contingent basis. The value of instrumentality effectively ranges from 0 to 1.'6 For example, if an employee sees that promotions are usually based on performance data, instrumentality will be rated high.




Performance ~ reward probability






Strong preference

Low probability



Range of valence. expectancy. and instrumentality


Can valence be iegative?

High probability


Low probability




High probability




Part Two



Reward S),$[em5


Chapter Five

cause of outcome uncertainty is that many outcomes are controlled by oththe employee cannot be sure how others will act. In the case of the employee is seeking a promotion, both the promotion and the higher pay are given by manItl"age:mr:nt,' nd the higher status 'is given by the employee's associates. This seconda How the Model Works relationship often creates great uncertainty. The product of valence, expectancy, and instrumentality is motivation. It is defined .. are two major ways for managers to address this uncertainty as they apply as the strength of the drive toward an action. Below is an example of the expectancy' expectancy model. First, l.hey can work to strengthen both the actual value model in operation. the rewards offered and the formal connections between effort and performMarty Fulmer. age thirty-one. works as a welder in a large factory. Fulmer has very strong and between performance and rewards. (This approach incorporates the prindesires (high valence) to be in white-collar work instead of his present job. which he no · ciples of organizational behavior modification, discussed earlier, in which the manlonger enjoys. 'age~ establishes strong relationships between desired behaviors and effective However, if the basis for such decisions is unclear or managerial favoritism is suspected, a low instrumentality estimate will be made.


that good


will result in high performance


by his

supervisor (high expectancy). However. all white-collarjobs in the plant require a college
degree, and Fulmer has only a high school diploma, Because of this barrier. Fulmer's instrumentality estimate is low. Being a good welder will not result in promotion 10 the desired oosirion. Despite strong desire for something. he sees no viable way to achieve it and; therefore. is not motivated to perform his job bcuer.


The three factcrs in the expectancy model 'Jl1J\' exist in an infinite number of combinations. The multiplicative combination that produces the strongest motivation is high positive valence, high expectancy, and high instrumentality, If desire for a reward is high. but either of the probability estimates is 10\\,. then motivation will likely be moderate. at best. If both expectancy and instrurnentalitv are low. then motivation will be weak even if the reward has high valence. A special case occurs when valence is negative. For example. some employees would prefer not to be promoted into management because of the stress. loss of overtime pay, or additional responsibilities they would bear. In. particular, the widespread corporate downsizings of the past decade clearly targeted middle managers and produced insecurity in those who remained. In situations like these, where promotion has a negative valence, the employee will try to avoid earning the promotion. The strength of avoidance behavior depends not only on the' negative valence but on the expectancy and instrumentality facters as well. Through experience, people learn to place a different value on the rewards available to them and also on the varying levels of rewards offered. They also develop expectancy and instrumentality estimates through both their direct experiences and their observations of what happens to others. As a consequence, employees perform "'a lyp~ of cost-benefit analysis, often implicit, for their own behavior at work. If the estimated benefit is worth the cost, then employees are likely to apply more effort.

..rewards.) The second approach requires that managers recognize and accept the legitimacy Of an employee's perception of the rewards. An employee may not perceive that · rewards are worthwhile (valence) or that there is a strong probability of receiving one (the effort-performance and performance-reward connections). Consequentl~, a · simple, straightforward incentive is often more motivating than a complex one. The complex one may involve so much uncertainty that the employee does not sufficiently con'n~ct the desired work behavior with a valued reward. The simple incentive, on the other hand, offers a practical course of action that the employee can picture and understand; therefore, it carries higher values for expectancy and instrumentality. In order to make the expectancy model work, the manager must clarify employee perceptions. This is just one area where a manager's communication skills (Chapter 3) can be invaluable.


the Expectancy Model

Aavantages .The expectancy model is a' valuable tool for helping managers think · about the mental processes through w'hlch"motivation occurs. In this model,.c,nployees 'do not act simply because of strong internal drives, unmet needs, or the application of rewards and punishments. Instead, they are thinking individuals whose beliefs, perceptions, and probability estimates powerfully influence' their behavior. The model reflects Theory Y assumptions about people as capable individuals and in this way values human dignity. The expectancy approach also encourages managers to design a motivational climate that will stimulate appropriate employee behavior. Managers need to communicate with employees, asking them three kinds of questions:

imary mid secondary tcomes

• Which of the rewards available do you value the most? The expectancy model depends on the employee's • Do you believe your effort will result in successful performance? (And if not, what perception of the relationship between effort, performance, and rewards. The · can I do to reassure you?) , connection between effort and ultimate reward is often uncertain. There are so many '. How likely is it that you will receive your desired rewards if you perform well? causes and effects in a situation that rarely can an employee be sure that a desired . reward will follow a given action. In addition, there are both primary and secondary Then some difficult tasks may face managers, such as telling employee's why some outcomes. The primary outcomes result directly from an action. Then the second·desired rewards are currently unavailable, or explaining to them why other factors ary outcomes follow from the primary ones. For example, an employee secures more may restrict employee perforrnance despite their strong efforts. Even if employees training and eventually earns the primary outcome of a promotion and the pay that · Cannot receive all that they desire, their expectations will be more realistic after effecgoes with it. Then secondary outcomes follow. The promotion brings more status and tive communication has occurred. recognition from associates. The higher pay allows the employee and her or his family to purchase more products and services that they want. The result is a complex Limitations Despite its general appeal, the expectancy model has some problems. and variable series of outcomes from almost any major action. .~ . It needs further testing to build a broad base of research evidence for support. Its

The Impact of Uncertainty







---.- ..


~~rt Two

Motivation and. Reward


.Mocioorion Chapter Five



'. 'previous discussions of motivational models have ~iewed the em~loyee as an virtually independent of other employees. As IS pointed out 1D Chapter 1, employees work. in a social system in which each is dependent to some on the others. Employees interact with one another on tasks and on social occaThey observe one another, judge one another, and make comparisons. The next to be discussed builds on this notion of comparison to add new dimensions to understanding of employee motivation. employees are concerned about more than just having their needs saris; they also want their reward ..system to be fair. This issue of fairness applies all types of rewards-psychological, social, and economic-and it makes the job of motivation much more complex. 1. Stacy Adams's equity theory that employees tend to judge fairness by comparing the outcomes they with their relevant inputs and also by comparing this ratio (not always the level of rewards) with the ratios of other people (Figure 5-9), as this shows.!" . One's own outcomes One's own inputs Others' outcomes Others' inputs


. Inputs include all the rich and diverse elements that employees believe they bring, or contribute, to the job-their education. seniority. prior work experiences, loyalty and commitment, time and effort, creativity, and job performance. Outcomes are the rewards they perceive they get from their jobs and employers; outcomes .·include direct pay and bonuses.' fringe benefits, job security, social rewards; and .psychological rewards. . . Employees analyze the fairness of their own outcome/input "contract," and then compare their contract with contracts.of other workers in similar jobs and even with those outside of their job. Fairness of rewards (equity) may even be judged in comparison with relatively arbitrary criteria like age, as the following example shows:

Inputs and Oil/COllies are compared.

multiplicative combination of the three elements needs further substantiation. Both intrinsic and extrinsic rewards need to be considered. The predicted effects of multiple outcomes from. the same effort must be built into tl.e model. In addition, reliable measures 'of valence, expectancy, and instrumentality need to be developed. There is a special need to develop measures that managers can . use in actual work settings. When possible, managers need to learn both what "<employees perceive and why they hold those ·valence, expectancy, and instrurnentality beliefs. . The model also needs to be made more complete ~hile still remaining practical 'enough for managers to use. Recent indications are that some additional factors can be added to it to better explain employee behavior. For example, there are often several different rewards available to employees. The valence of each reward must be assessed and combined with the valences of other rewards to estimate the total motivational.force for each employee. Another possible addition involves providing motivated employees with' the opportunity to perform (refer to Figure 5-1). The model raises soine fundamental questions: Is it so complex that managers tend to use only its highlights and not explore its details and implications? Will other managers ignore it altogether? Many managers in operating situations do not have tlii time or resources. to use a complex motivational system on the job. However, as they .begin to learn about it,. perhaps tliey can use parts of it. . .

FIGURE's Outcomes '., .: .: (also. coniparedwith'others' outccrnes) assessment


Key factors in equity




:.' .












and Reward S,nems


Irene Nickerson is a supervisor in a large public utility. For several years her her she could consider herself successful-when her salary (in thousands of her age. One year. at age thirty-four, she received a substantial salary i placed her income at $33,865. She was frustrated, incensed, and demoralized afterwards, for she did not receive what she dearly wanted! For an extra $135. the could have matched her equity expectations and continued to have a motivated employe;.
_. ~j

the affected employees reacted by doubling their normal theft' rate (tools ~~d supplies from the company). Turnover also jumped to 23 percent, compared with a normal of 5 percent. Apparently the employees experienced a change from relative equity _to ...n,jPn,"vment inequity. They reacted to their perceived mistreatment by making unofficial 'transfers of organizational resources to themselves. When the pay cut ended after ten weeks.
the theft rate returned to normal levels.





Pay was a symbolic scorecard by which Nickerson compared her outcomes wi'th~:ln+,>rr,.~.t ng the Equitr Model her inputs (since she included age with her other inputs of education. experience, and ng of equity should remind managers that e.nployees work within seveffort). Her reaction is only one of the three combinations that can occur from soci~ social systems. Employees may actually select a number of reference groups both comparisons-equity, overreward, and underreward. If employees perceive eqlli0', and outside 'the organization._Ernployees are also inclined to shift the baSIS for they will continue to contribute at about the same level. Otherwise. under conditions comparisons to the standard that is most favorable to them. Educated people of inequity, they will experience tension that will create the motivation to reduce the inflate the value of their education, while employees With longer service . inequity. The resulting actions can be either physical or psychological. and internal seniority as the dominant criterion. Other employees choose somewhat or external. (economic) groups as their reference, Many employees have strong egos and If employees feel overrewarded, equity theory predicts that they will feel an opinions of themselves. Consequently, all these factors (multiple reference imbalance in their relationship with their employer and seek to restore that balance, groups. shifting standards. upward orientation, and personal egos) make the task of They might wor~ harder (shown as an internal and physical response in Figure 5-10). predicting when inequity will occur somewhat complex. : they might discount the value of the rewards received (internal and psychological), they;. Equity theory has generated extensive research. with many of the results being supcould try to convince other employees to ask for more rewards (external and physical). portive. In particular, underreward seems to produce motivational tension With preor they might simply choose someone else for comparison purposes (external and psy- dictable (negative) consequences; less co~sistent results are found for the overreward chological).' condition. The different research results' may be reconciled by the Idea of equity Workers who feel they have been underrewarded seek to reduce their feelings of ,sensitivity, which suggests that individuals have different preferences for equity. Some inequity through the same types of strategies. but some of their specific actions are people seem to prefer overreward, some conform to the traditional model, and now reversed. They might. lower the quantity or quality of their productivity, they others prefer to be underrewarded.l" Identifying which employees fall into each class could innate the perceived value of the rewards received. or they could bargain for . would help managers predict who would experience inequity and how important It more actual rewards. Again, they could find someone else to compare themselves would be in affecting their bel.uvior. (more favorably) with, or they might simply quit. In any event, they are reacting to· Similar elements-effort (inputs) and rewards (outcomes)-can be seen when. inequity by bringing their inputs into balance with their outcomes. Knowledge of 'comparing the equity and expectancy models. In both approaches, perception plays a outcome/input ratios allows managers to predict part of their employees' behavior key role. again suggesting how valuable it is for a manager to gather information from through understanding when, and under what conditions, workers will experience employees instead of trying to impose perceptions onto them. The major challenges inequity. . for a manager using the equity model lie in measuring employee' assessments of their inputs and outcomes, identifying their choice of references. and evaluating en"Jlo)_An example of employee reaction to underpayment occurred in a manufacturing plant that made small mechanical parts for the aerospace and automotive industries. IS Some irnpor- perceptions of inputs and outcomes. rant contracts were canceled, and the company was forced to announce a IS percent cut in pay for all' employees. Compared with a control group in another' plant whose pay was not


Equity sensitivity



FIGURE 5-10 Possible reactions to perceived inequity

Internal, physical Internal; psychological

'Work harder . Discount the reward .

.. :' '". .. : ~>~ : r. '.
"0; ,'",

Lower productivity·
: .' .•••. ;.,

lnftate x~lue:'of the.;.,

External, physic~(·;_ ' E'~Courag~ referen~ -, Bargain for more;' :::;,~ •.,;.; >, (.',~< :.';_~ff;\p.erson to opta!n mor~:~;'_P9~ib,ly. qUit),: "., ' .. External, psycrol?gical:5Shange.
. :......



.: :.:·._r '3~::':':- \ '\:.if.':· person !;' ..~~;!\;~. ~/;~:l"-·I::.· .. ~ ..:

the~fere,n.\~~?.;~ . Cilillige:fherefererit·:·

~. .'



Several motivational models are presented in this chapter. All the models have strengths and weaknesses, advocates and critics. No model is perfect, but allof them ,add something to our understanding of the motivational process. Other models are being developed. and attempts are being made to integrate exrsung approaches .. .. The cognitive (process) models are likely to continue dominating organizational practice for some time. They arc most consistent with our supportive and holistic ,View of people as thinking individuals who make somewhat conscious decisions about their behavior. However, behavior modification also has some usefulness, especially in stable situations with minimum complexity, where there appears to be a direct connection between behavior and its consequences. -ln 'more complex, dynamic situations, cognitive models will be used more often. In other words,. the iiiotivational model used must be adapted to the situation as ",:ell, as blen~ed With models .

Contingent use of motivatiOlla/mode/s

::- .. ;~. ~.'





.' -.. .


-~ ..




. tr·· ~:







1. Identify each employee's change over time. needs and drives and how they 4. Set performance-oriented lenging, and acceptable. 2. Reduce the distracting influence of hygiene factors before turning your attention to providing motivators. 3. Establish strong connections between desiredbehaviors and rewards given; provide rewards that recognize high achievers more than other employees; administer rewards on a systematic basis (e.g., a variable-ratio reinforcement schedule).





reinforcement behavior (OB Mod)

goals that are specific, chal-!

Organizational modification Outcomes Partial

5. Seek information regarding employee perceptions of va:" lence, expectancy, and instrumentality; share key infor·. mation with employees to improve their assessments. 6. Discover the referent people or groups and perceived outcomelinput ratios for employees' equity cornputation; compare your assessments c.f likely equity with theirs. model Extinction

Terms and Concepts for Review


reinforcement feedback monitoring

Performance Performance Positive Power

reir!t'orcement motivation

Pri mary needs Primary outcomes

When affect often one which tion people their they person join an organization, on-the-job to another. effort performance. It is useful, to perform they bring with them certain Sometimes though, these to determine and satisfy to understand drives and needs apparent, greatly create that but from are immediately but also vary how needs brings within they

'Extrinsic moti varors Goal setting Growth needs Hierarchy of needs Higher-order needs

Punishment Reinforcement, Reinforcement, Reinforcement, Reinforcement, Reinforcement, 'Relatedness Secondary Secondary continuous fixed-interval fixed-ratio variable-interval variable-ratio needs needs outcomes
.~ ..

not only are difficult


stimulate of rewards.

and how effective internal makes some

performance and needs

the satisfacemployees encourage but 10

iiygiene factors Imposter phenomenon

Several are examined


to understanding Each model share


in the chapter.
All the models motivational, behaviors Reinforcement of internal Managers and specific-to to moti vation. approaches

a contribution

to our understanding factors

Inputs Instrumentality Intrinsic mot ivators Job content

of motivation. managers Behavior alternative use higher-order, ber of employee and extinction. tial schedules. A blending of goal setting. challenging, selling,

sirniliarities. maintenance, factors

In general, and extrinsic

not only to rrll1sider .mcdification consequences

lower-order. and intrinsic

as well. by stating their to either that a nurnThe or parpunishment, consequences. continuous

Self-actualization Sel f-efficacy Shaping needs Two-factor Valence factors of someone how explicitly who, in the past, Which did an excellent job of motivating you. model of motivation

focuses include

on the external positive and

environment negative

can be affected

by manipulating according

Job context Law of effect . Lower-order Motivation


can be applied

and external are encouraged stimulate

approaches desired

is obtained



to use cues-such employee of performance presented states

as goals that are accepted, behavior. feedback, In this way; goal provides . a hal-


.1. Think

combined approach

with the reinforcement to motivation

this was done. or higher-order

of the following


did that person

Discussion Questions

anced ".'

use (either a. b. c. d. of how

or implicitly)" needs? factors? If so, which one(s)? needs?


in this chapter that motivation that effort

are the expectancy is a product

Lower-order Maintenance Existence, Behavior

and equity much vation. mentality reward. The employee's a match parison plishment the strength


The expectancy something The formula

model is valence

or motivational relatedness, modification?

one wants Valence

and the' probabilities of a person's

will lead to task accomX instrumentality

and reward.

X expectancy preference

= rnotiis by a to the

or growth

is the strength

for an outcome. in accomplishing


of belief that cne's is the strength

effort will be successful that successful motivational The equity perceived rewards to combine inputs

a task. Instru-

e. Goal setti ng? 2, In your role as a student, lower-order or higher-order

do you feel that you are motivated needs? Explain. two-factor Describe model


by Maslow's motivation to you at . some

of belief equity

performance models relate

will be followed specifically comparison coupled level. models

how you expect is' most motivating

expectancy intellectual between with some


to chance once you graduate. 3. Which one factor in Herzberg's the present time? Explain.

processes. person's


has a double

in it~.

Is this a maintenance to manipulate affect needs operates when could people's

or motivational

factor?' Describe Why'

an employee's referent

and outcomes,

with a comto create;

4, It is relatively
ways : ~5.. Discuss important in which how

easy for a manager a manager behavior modification

extrinsic rewards.
to motivate using people.

for her or his input

intrinsic satisfaction

of an employee; is it stili .' , ,


are encouraged motivational

the perspectives

of several


a complete


for their employees.

to ~nd~rstand

this approach~·.


:ilI' : ,









Part Two

Motivacion and Reward Systems

6. Explain

the differences




and punishment. arid debaie

7. Divide the class into two groups (one in favor and one opposed) proposition: "Rewards motivate people." 8. How would you use the expectancy




I recognize reinforcement very different

that negative and punishment strategies. are

10 9 10 9
8 7







model their

in the following vacations during from

situations? the summer to

a. You want spring b. You believe and want


to switch


8. Whenever possible, I use the variable-ratio schedule for

so that job needs to encourage

will be filled suitably her to prepare for it.

the summer. potential for promotion restaurant your inputs

that one of your e.nployees ankle

has excellent


administering rewards. I seek to provide the conditions will allow employees to improve









c. You have a sprained and get you 9. Apply the equity and outcomes? equity? 10. The text suggests how

a hamburger.

and want a friend as a student. it? equity

to walk to a fast-food How do you measure individuals?

model to yourself Whom

their level of self-efficacy. 10. I carefully monitor each employee's . level of performance and provide constructive feedback as needed. Add

10 9 10 9
up your total



6 6





have you chosen

as referent

Do you perceive If that


7 points


4 ten



If not, how will you attain that an individual's would


can be distorted. them?



here, between good

for the -'-~ solid


is the case, How

you go about motivational carefully.

correcting skills? Circle

or adjusting

that number

and report

it when

it is requested.

• If you scored

~ Assess Your :) Own Skills

well do you exhibit the following reflects tried


81-100 points,

you appear

to have

capability .

for with level ....

Read when across

statements the degree to motivate'

the number

on the response describes

scale you

demonstrating lower

motivational scores

that most closely you have the entire a brief action

to which

each statement

accurately your score

• If you scored between
self-assessment several • If you scored regarding material We encourage

61-80 points, 60

you should ways you should sections

take a close to improve be aware future

look at the items those success items. skill


else. Add up your total points Be ready to report

and prepare for tabulation

and explore be detrimental relevant and other

plan for self-improvement. group.

less than

that a weaker and watch

items could chapters

to your sources.

as a motivator. for related

you to review

of the chapter

Good description 1. I consciously model people. 2. I determine achievement,. driven whether people are affliation, "'hie" or power follow an integrated such as of motivation

Poor description __

in subsequeDt

Now identify your three lowest scores, and write , __ , __ . Write a brief paragraph, detailing sharpen each of these ski lis.

the question numbers here: to yourself an action plan for

how you might

Figure "5-1 when


10 9 10 9 10 9








The Downsized Instructions
of Phil, one is ready,' Divide Phil

into groups Each meet of four persons, person each each should person person with one person read only their and attempt to remain taking the role ev~rya motiva-



and respond

accordingly. 'evel of is most powerful


3. '1 try to determine the need hierarchy for each employee.

Sue, John, atmosphere

and Linda. should that will

role. When to create












the firm and be

4, I make sure that I eliminate
'dtssatisfiers before rnoti~ational employees. 5. I recognize be interested their growth the Maslow, models. 6. I am conscious provide employees effect. both positive of the need to consequences, to the law of and negative, to utilize systematic that employees needs, might of by in the satisfaction as indicated Herzberg, in the work context I focus on providing factors to my


Phil 10

You are Your

the supervisor has They job

of the circulation recently been were .terminated You have are about

department and for business three the

for a scientific you lost two that reasons had


lisher. service Sue

department their


customer noth-







representatives. and Linda-and

ing to do with John . them ously) to remain and stay Your that

performance. and

rernarmng of them work

representatlvesto try to convince previ-

to meet with each (doing

motivated with


of five person

and Alderfer

the firm. has recently to do with days been downsized, and two of the five customer terminated for business reaYou are one of the three ·You are a single Sometimes mother a you work

10 9








service 'sons

department nothing

representatives had representatives to take extra

were laid off. They were allegedly their job performance. (the others off when are John


and Linda).










'and have

your children

are sick.







Motioorion Chapter Part Two


and Reward S),srerns

. flexible schedule of hours to accommodate the children's schedules. You are beginrung to wonder If these allowances will make you more vulnerable in any future round of layoffs. You are about to meet with Phil now. Your department has recently been downsized, and two of the five customer' service representatives were laid off. They were allegedly terminated for business rea- .' sons that had nothing to do with their job performance. You are one of the three remaining representatives (the others are Sue and Linda). You have been on the job for two years. You attend college at night and see the job as a stepping-stone into a management position. However, after seeing your two colleagues (and friends) terminated, you are beginning to wonder if this company is one that you want to stay with. You are about to meet with Phil now. Your department has recently been downsized, and two of the five customer service representatives were laid off. They were allegedly terminated for business reasons that had nothing to do with their job performance. You are one of the three remaining representatives (the others are Sue and Linda). You have worked in customer service for fifteen years and have always felt like you made a lifetime commitment to work. Now even you are beginning to wonder how secure your job is. After all, if it happened to two of your colleagues, it might happen to you, too. You are about to meet with Phil now.


be opened." Bird says his big dream is to build a grand piano: "It is the one thing

'1 haven't done yet 'and want to do."

Questions John

1. Discuss the nature of Bird's motivation in building pianos. What are hIS drives and needs? Would a behavior modification program affect his motivation? Why or why not? What would be the effect of setting a goal of two pianos per year for him? 2_ How could a manufacturer of pianos build the motivation Bird has now into its employees?



Ate Grades Motivators?
1. Assess the valence of receiving an A in this course. Assign that A a valence somewhere between -I and + I, using gradations of one-tenth (e.g., 0.8, 0.9" 1.0). '. 2. Now assess the probability (between 0.0 and .1.0) that the level of effort you expect to commit to this course will result in high enough performance to merit an A ietter grade. This constitutes your expectancy score. 3. Then assess the probability.(between 0.0 and 1.0) that your stellar performance in this course (an A) will substantially improve your overall grade-point average. This represents your instrumental it)' score" 4_ Now multiply your Y, E, and I scores to produce an overall measure of your likely motivation (on this one task and for this reward). This overall score should fall between - 1.0 and + 1.0. Enter your name and data on line I below. 5. Share your four scores with classmates in a format lik'e that shown here. Note the range of responses within the class for each item. Student's Name Valence Expectancy Instrumentality Motivation

Experiential Exercise



1. What major motivational model(s) did Phil use with Sue, John, arid Linda? 2. What otherapproaches might have worked better? 3. What are the major lessons you can derive from this exercise?


The Piano Buildero
Waverly Bird builds pianos from scratch. He is a consultant to a piano manufacturer. He is on call and works about one week a month, including some travel, to solve problems of customers. He also rebuilds about a dozen grand piano- every year for special customers; but, according to Bird, the most satisfying part of his life is his hobby,~f building pianos from the beginning. "It's the part that keeps a man alive," he-says. 'The challenge of the work is what lures Bird onward. He derives satisfaction from precision and quality, and he comments, "Details make the difference. When you cut a little corner here and a little corner there, you've cut a big hole. A piano is like the human body; all the parts are important." . Bird has a substantial challenge in making a whole piano. His work combines skills in cabinetmaking, metalworking, and engineering, with knowledge of acoustics and a keen ear for music. It requires great precision, because a tiny rnisaliznrnent would ruin a piano's tune. It also requires versatility: A keyboard must b~ balanced to respond to the touch of a finger; the pin block, on the other hand, must withstand up to 20 tons of pressure. In addition, Bird had to make many of his own piano construction tools. . . Bird has built forty pianos in his thirty-four-year career. Though construction takes near~y a year, he sells his pianos at the modest price of a commercial piano. He is seeking not money but challenge and satisfaction, He says, "The whole business is a series of closed doors. You learn one thing, and there's another closed door., waiting

11 2. 3. 4. 5. etc~.


~----~------~-------+-------J_ J_



"l'~ .)