Chapter 

6
Motivation

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 Class Agenda
Motivation defined
Theories of motivation
• Expectancy theory
• Goal setting theory
• Equity theory
• Psychological empowerment
How important is motivation?
Application

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 An Integrative Roadmap

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 Motivation Defined
A set of energetic forces that originate within and outside
an employee that initiates work-related effort and
determines its direction, intensity, and persistence
• What do you do?
• How hard do you do it?
• How long do you do it?

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 Engagement

Consider your approach to your classes this semester:

1. I give my assignments my utmost attention.
2. I really concentrate on the things my classes demand.
3. I find myself absorbed in the content of my classes.
4. I really focus my attention on the things I’m learning.
5. I rarely get distracted when I’m working on my class stuff.
6. In general, I approach my class work with focus.

Average Score: 24

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 Theories of Motivation
Several theories attempt to summarize the key factors
that foster high motivation:
• Expectancy theory
• Goal setting theory
• Equity theory
• Psychological empowerment

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 Expectancy Theory
1 of 3

Motivation is fostered when the employee believes three

things:
• That effort will result in performance
• That performance will result in outcomes
• That those outcomes will be valuable

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 Figure 6-2 Expectancy Theory

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 Expectancy Theory
2 of 3

Effort → Performance
Can be hindered by:
• Lack of necessary resources
• Lack of supportive leadership
• Low self-efficacy

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 Self-Efficacy

1. I can succeed, even when the going gets tough.

2. I do most things well, relative to my peers.
3. I have a sense of confidence on a lot of different tasks.
4. I know that I can overcome challenges when I encounter them.
5. If I set my mind to certain goals, I’m confident I can achieve them.
6. I am able to succeed at the things I want to be good at.
7. I’m confident in my ability, even when I face difficult tasks.
8. When I set a goal for myself, I believe I can meet it.

Average Score: 31

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 Figure 6-3 Sources of Self-Efficacy

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 Instrumentality
Performance → Outcomes
Can be hindered by:
• Poor methods for measuring performance, as
Instrumentality could actually be rewritten to be
Performance → Evaluation → Outcomes
• Inadequate budget to provide outcomes, even when
performance is high
• Use of policies that reward things besides performance,
such as attendance or seniority
• Time delays in doling out rewards

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 Valence
1 of 2

Anticipated value of outcomes

• Extrinsic
• Intrinsic

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 Table 6-2 Extrinsic and Intrinsic Outcomes
EXTRINSIC OUTCOMES INTRINSIC OUTCOMES
Pay Enjoyment
Bonuses Interestingness
Promotions Accomplishment
Benefits and perks Knowledge gain
Spot awards Skill development
Praise Personal expression
Job security (Lack of) Boredom
Support (Lack of) Anxiety
Free time (Lack of) Frustration
(Lack of) Disciplinary actions
(Lack of) Demotions
(Lack of) Terminations
Sources: Adapted from E.E. Lawler III and J.L. Suttle, “Expectancy Theory and Job Behavior,” Organizational Behavior and Human Performance 9 (1973), pp. 482–503; J. Galbraith and
L.L. Cummings, “An Empirical Investigation of the Motivational Determinants of Task Performance: Interactive Effects between Instrumentality–Valence and Motivation–Ability,”
Organizational Behavior and Human Performance 2 (1967), pp. 237–57; E. McAuley, S. Wraith, and T.E. Duncan, “Self-Efficacy, Perceptions of Success, and Intrinsic Motivation for
Exercise,” Journal of Applied Social Psychology 21 (1991), pp. 139–55; and A.S. Waterman, S.J. Schwartz, E. Goldbacher, H. Green, C. Miller, and S. Philip, “Predicting the Subjective
Experience of Intrinsic Motivation: The Roles of Self-Determination, the Balance of Challenges and Skills, and Self-Realization Values,” Personality and Social Psychology Bulletin 29
(2003), pp. 1447–58.

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 Valence
2 of 2

Why does pay have such a high valence?

The meaning of money
• Achievement
• Respect
• Freedom

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 Meaning of Money

Average 
Score: 13

Average 
Score: 15

Average 
Score: 20

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 Expectancy Theory
3 of 3

Key aspect: multiplicative effects

• Motivation is zero if either expectancy, instrumentality,
or valence is zero

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 Goal Setting Theory

Motivation is fostered when employees are given specific

and difficult goals rather than no goals, easy goals, or “do
your best” goals.

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 Figure 6-4
Goal Difficulty and Task Performance

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 Figure 6-5 Goal Setting Theory

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 Equity Theory
Motivation is maximized when an employee’s ratio of
“outcomes” to “inputs” matches those of some
“comparison other.”
Thus motivation also depends on the outcomes received
by other employees.

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 Figure 6-6 Equity Theory Comparisons
1 of 3

Are these really equal?

Source: Adapted from J.S. Adams, “Inequity in Social Exchange,” 
in Advances in Experimental Social Psychology, Vol. 2, ed. L.
Berkowitz (New York: Academic Press, 1965), pp. 267–99
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 Figure 6-6 Equity Theory Comparisons
2 of 3

What emotion do you feel in this case?

What methods can be used to restore equity?

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 Figure 6-6 Equity Theory Comparisons
3 of 3

What emotion do you feel in this case?

What methods can be used to restore equity?

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 Psychological Empowerment
An intrinsic form of motivation derived from the belief
that one’s work tasks are contributing to some larger
purpose
Fostered by four beliefs:
• Meaningfulness
• Self-Determination
• Competence
• Impact

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 OB on Screen

Star Trek Beyond

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 Figure 6-8 Effects of Motivation on
Performance and Commitment

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 Table 6-7 Compensation Plan Elements
Individual‐Focused Description
Piece‐rate A specified rate is paid for each unit produced, each unit sold, or each service provided.
Merit pay An increase to base salary is made in accordance with performance evaluation ratings.
Lump‐sum bonuses A bonus is received for meeting individual goals but no change is made to base salary. The 
potential bonus represents “at risk” pay that must be re‐earned each year. Base salary 
may be lower in cases in which potential bonuses may be large.
Recognition awards Tangible awards (gift cards, merchandise, trips, special events, time off, plaques) or 
intangible awards (praise) are given on an impromptu basis to recognize achievement.

Unit‐Focused Description
Gainsharing A bonus is received for meeting unit goals (department goals, plant goals, business unit 
goals) for criteria controllable by employees (labor costs, use of materials, quality). No 
change is made to base salary. The potential bonus represents “at risk” pay that must be 
re‐earned each year. Base salary may be lower in cases in which potential bonuses may be 
large.

Organization‐Focused Description
Profit Sharing A bonus is received when the publically reported earnings of a company exceed some 
minimum level, with the magnitude of the bonus contingent on the magnitude of the 
profits. No change is made to base salary. The potential bonus represents “at risk” pay 
that must be re‐earned each year. Base salary may be lower in cases in which potential 
bonuses may be large.

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 Next Time
Chapter 7: Trust, Justice and Ethics

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 Appendix

Appendix of Image Long Descriptions

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 Appendix 1 Figure 6-2 Expectancy Theory
Effort and performance lead to various outcomes. As
part of effort, expectancy is explained as, If I exert a lot
of effort, will I perform well? Under performance,
instrumentality is explained as, If I perform well, will I
receive outcomes?
Four possible outcomes are shown, which may be either
positive or negative. This is valence, explained as, Will
the outcomes be satisfying?

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Appendix 2 Figure 6-3 Sources of Self-Efficacy
There are two major sources of self-efficacy: analysis of
task requirements and assessment of personal and
situational resources.
Four factors shape these sources: past
accomplishments, vicarious experience, verbal
persuasion, and emotional cues.
Sources: Adapted from A. Bandura, “Self-Efficacy:
Toward a Unifying Theory of Behavioral Change,”
Psychological Review 84 (1977), pp. 191–215; and M.E.
Gist and T.R. Mitchell, “Self-Efficacy: A Theoretical
Analysis of Its Determinants and Malleability,” Academy
of Management Review 17 (1992), pp. 183–211.
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 Appendix 3 Meaning of Money
Respondents are asked to rate statements using the following scale: 1 strongly disagree; 2 disagree; 3 slightly disagree;
4 neutral; 5 slightly agree; 6 agree; 7 strongly agree.
The statements are:
1. Having money means that I’ve achieved something.
2. Having money shows that I’ve succeeded.
3. Having money is a symbol of accomplishment.
4. Having money signifies that I’ve performed well.
5. Having money brings respect from others.
6. Having money can make others admire you.
7. Having money is worthy of others’ esteem.
8. Having money can make you more well-regarded.
9. Having money brings more freedom.
10. Having money can create opportunities.
11. Having money provides more autonomy.
12. Having money brings independence.
Average scores for the three dimensions appear on the slide. These are: 13 for items 1 to 4; 15 for items 5 to 8; and 20
for items 9 to 12.
Source: Original items. See T.L. Tang, “The Meaning of Money Revisited,” Journal of Organizational Behavior 13 (1992),
pp. 197–202, for an alternative measure of these concepts.

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 Appendix 4 Figure 6-4 Goal Difficulty and Task
Performance
A line graph shows that as goal difficulty increases from
easy through moderate through difficult, so does task
performance. Performance declines when goals become
impossible.
Source: Adapted from E.A. Locke and G.P. Latham, A
Theory of Goal Setting and Task Performance
(Englewood Cliffs, NJ: Prentice Hall, 1990).

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 Appendix 5 Figure 6-5 Goal Setting Theory
Specific and difficult assigned goals have an effect on
task performance. This is shaped by a self-set goal,
which involves the variables of intensity of effort,
persistence of effort, and task strategies.
Three moderators affect the strength of the relationships
between these variables: feedback, task complexity, and
goal commitment.

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 Appendix 6 Figure 6-6 Equity Theory
Comparisons 2 of 3
When your outcomes are less than other’s outcome but
your inputs are the same, two options are available.
You may grow your outcomes by talking to your boss or
by stealing from the company. You may also shrink your
inputs by lowering the intensity or persistence of effort.
Source: Adapted from J.S. Adams, “Inequity in Social
Exchange,” in Advances in Experimental Social
Psychology, Vol. 2, ed. L. Berkowitz (New York:
Academic Press, 1965), pp. 267–99

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 Appendix 7 Figure 6-6 Equity Theory
Comparisons 3 of 3
When your inputs are less than other’s outcome but your
outcomes are the same, two options are available.
You may shrink your outcomes (Yeah, right! Let’s see
what we can do about those inputs.). You can also grow
your inputs through more high quality work or through
some “cognitive distortion.”
Source: Adapted from J.S. Adams, “Inequity in Social
Exchange,” in Advances in Experimental Social
Psychology, Vol. 2, ed. L. Berkowitz (New York:
Academic Press, 1965), pp. 267–99

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 Appendix 8 Figure 6-8 Effects of Motivation on
Performance and Commitment
A graphic shows that motivation is strongly correlated with job performance and
moderately correlated with organizational commitment.
Sources: Y. Cohen-Charash and P.E. Spector, “The Role of Justice in Organizations:
A Meta-Analysis,” Organizational Behavior and Human Decision Processes 86
(2001), pp. 287–321; J.A. Colquitt, D.E. Conlon, M.J. Wesson, C.O.L.H. Porter, and
K.Y. Ng, “Justice at the Millennium: A Meta-Analytic Review of 25 Years of
Organizational Justice Research,” Journal of Applied Psychology 86 (2001), pp. 425–
45; J.P. Meyer, D.J. Stanley, L. Herscovitch, and L. Topolnytsky, “Affective,
Continuance, and Normative Commitment to the Organization: A Meta-Analysis of
Antecedents, Correlates, and Consequences,” Journal of Vocational Behavior 61
(2002), pp. 20–52; A.D. Stajkovic and F. Luthans, “Self-Efficacy and Work-Related
Performance: A Meta-Analysis,” Psychological Bulletin 124 (1998), pp. 240–61; W.
Van Eerde and H. Thierry, “Vroom’s Expectancy Models and Work-Related Criteria: A
Meta-Analysis,” Journal of Applied Psychology 81 (1996), pp. 575–86; and R.E.
Wood, A.J. Mento, and E.A. Locke, “Task Complexity as a Moderator of Goal Effects:
A Meta-Analysis,” Journal of Applied Psychology 72 (1987), pp. 416–25.

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