CHAPTER 10

The Nature of Motivation

Motivation
The set of forces that cause people to behave in certain ways
Individual performance is generally determined by three things:
✓ Motivation (the desire to do the job),
✓ Ability (the capability to do the job),
✓ The work environment (the resources needed to do the job). If an employee lacks ability, the manager
can provide training or replace the worker.

Content Perspectives on Motivation

Content Perspectives
Approach to motivation that tries to answer the question “What factors motivate people?”
✓ The Needs of Hierarchy Approach
✓ The Two-Factor Theory
✓ The Individual Human Needs

The Needs Hierarchy Approach

Maslow’s hierarchy of needs
Suggests that people must satisfy five groups of needs in order— physiological, security, belongingness,
esteem, and self-actualization.

The Two-Factor Theory

Two-Factor Theory of Motivation
Suggests that people’s satisfaction and dissatisfaction are influenced by two independent sets of factors—
motivation factors and hygiene factors.
 Individual Human Needs
Need for Achievement
The desire to accomplish a goal or task more effectively than in the past
Need for Affiliation
The desire for human companionship and acceptance
Need for Power
The desire to be influential in a group and to control one’s environment

Process Perspectives on Motivation

Process Perspectives
Approaches to motivation that focus on why people choose certain behavioral options to satisfy their needs
and how they evaluate their satisfaction after they have attained those goals
1.) Expectancy theory
Suggests that motivation depends on two things—how much we want something and how likely we think we
are to get it
The Expectancy Model of Motivation

The Expectancy Model of Motivation

Effort-to-Performance Expectancy
The individual’s perception of the probability that effort will lead to high performance
Performance-to-Outcome Expectancy
The individual’s perception that performance will lead to a specific outcome
Outcomes Consequences - of behaviors in an organizational setting, usually rewards
Valence
An index of how much an individual values a particular outcome; the attractiveness of the outcome to the
individual
 The Porter-Lawler Extension
The Porter–Lawler Extension of Expectancy Theory
suggests that if performance results in equitable rewards, people will be more satisfied. Thus, performance can
lead to satisfaction. Managers must therefore be sure that any system of motivation includes rewards that are
fair, or equitable, for all.

The Equity Theory

Equity Theory
Contends that people are motivated to seek social equity in the rewards they receive for performance

Goal-Setting Theory
Behavior is a result of conscious goals and intentions.
Setting goals influences behavior in organizations.
✓ Goal difficulty is the extent to which a goal is challenging and requires effort.
✓ Goal specificity is the clarity and precision of the goal.
✓ Goal acceptance is the extent to which a person accepts a goal as his or her own.
✓ Goal commitment is the extent to which he or she is personally interested in reaching the goal.
The Expanded Goal-Setting Theory of Motivation

The Reinforcement Perspectives on Motivation

Reinforcement Theory
Approach to motivation that argues that behavior that results in rewarding consequences is likely to be
repeated, whereas behavior that results in punishing consequences is less likely to be repeated
Assumes that:
✓ Behavior that is rewarded is likely to be repeated.
✓ Behavior that is punished is less likely to be repeated
 Kinds of Reinforcement in Organization
Positive Reinforcement
A method of strengthening behavior with rewards or positive outcomes after a desired behavior is performed
Avoidance
Used to strengthen behavior by avoiding unpleasant consequences that would result if the behavior were not
performed
Punishment
Used to weaken undesired behaviors by using negative outcomes or unpleasant consequences when the
behavior is performed
Extinction
Used to weaken undesired behaviors by simply ignoring or not reinforcing them

Providing Reinforcement in Organizations

Fixed-Interval Schedule
Provides reinforcement at fixed intervals of time, such as regular weekly paychecks
Variable-Interval Schedule
Provides reinforcement at varying intervals of time, such as occasional visits by the supervisor
Fixed-Ratio Schedule
Provides reinforcement after a fixed number of behaviors regardless of the time interval involved, such as a
bonus for every fifth sale
Variable-Ratio Schedule
Provides reinforcement after varying numbers of behaviors are performed, such as the use of compliments by
a supervisor on an irregular basis

Using Reinforcement in Organizations

Organizational Behavior Modification (OB Mod)
Method for applying the basic elements of reinforcement theory in an organizational setting

Popular Motivational Strategies

Empowerment
The process of enabling workers to set their own work goals, make decisions, and solve problems within their
sphere of responsibility and authority
Participation
The process of giving employees a voice in making decisions about their own work
Areas of Participation for Employees
✓ Making decisions about their jobs.
✓ Making decisions about administrative matters.
✓ Participating in decision making about broader issues of product quality.

Alternative Forms of Work Arrangement

Compressed Work Schedule
Working a full forty-hour week in fewer than the traditional five days
Flexible-Work Schedules
Work schedules that allow employees to select, within broad parameters, the hours they work
Job Sharing
When two part-time employees share one full-time job
Telecommuting
Allowing employees to spend part of their time working offsite, usually at home

Using Reward Systems to Motivate Performance

Reward system
The formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded
Effects of Organizational Rewards
✓ Higher-level performance-based rewards motivate employees to work harder.
✓ Rewards help align employee self-interest with organizational goals.
✓ Rewards foster increased retention and citizenship.

Merit Reward Systems

Merit Pay
Pay awarded to employees on the basis of the relative value of their contributions to the organization
Merit Pay Plan
Compensation plan that formally bases at least some meaningful portion of compensation on merit

Incentive Reward System

Monetary Incentives
✓ Incentive plan
✓ Employee is paid a certain amount of money for every unit the employee produces.
✓ Sales commissions plan
✓ Employee is paid a percentage of the employee’s sales to customers for selling the firm’s products or
services.
Nonmonetary Incentives
✓ Immediate, and one-time rewards
✓ Days off, additional paid vacation time, and special perks

Common Team and Group Reward Systems

Gainsharing Programs
Designed to share the cost savings from productivity improvements with employees
Scanlon Plan
Similar to gainsharing, but the distribution of gains is tilted much more heavily toward employees
Profit Sharing Plans Provide
an annual bonus to all employees based on corporate profits.

New Approach to Performance-Based Rewards

Standard Forms of Executive Compensation
✓ Base salary
✓ Incentive pay (bonuses)
Special Forms of Executive Compensation
✓ Stock option plans
✓ Executive perks

New Approaches to Performance-Based Rewards

Employee Participation
 ✓ Allowing employee participation in the deciding the distribution of rewards.
Innovation in Incentive Programs
✓ Offering stock options to all employees.
✓ Individualizing reward systems such that different employees can be offered different incentives
 CHAPTER 9
Understanding Individuals in Organizations
Psychological contract
The overall set of expectations held by an individual with respect to what he or she will contribute to the
organization and what the organization will provide in return
Contributions
What the individual provides to the organization
Inducements
What the organization provides to the individual

The Person-Job Fit

The extent to which the contributions made by the individual match the inducements offered by the
organization

Personality and Individual Behavior

Individual differences
Personal attributes that vary from one person to another
Personality
The relatively stable set of psychological and behavioral attributes that distinguish one person from another

The “Big Five” Personality Traits

The “Big Five” Model of Personality
A popular personality framework based on five key traits

Agreeableness
A person’s ability to get along with others
Conscientiousness
A person’s ability to manage multiple tasks and consistently meet deadlines
Neuroticism
Extent to which a person experiences anxiety or is poised, calm, resilient, and secure
Extraversion
A person’s comfort level with relationships
Openness
A person’s rigidity of beliefs and range of interests

The Myers-Briggs Framework

This framework, based on the classic work of Carl Jung, differentiates people in terms of four general
dimensions, defined as follows:
The Myers–Briggs Type Indicator (MBTI) is one popular questionnaire that some organizations use to
assess personality types. Is a useful method for determining communication styles and interaction preferences.
✓ Extraversion (E) versus introversion (I). Extraverts get their energy from being around other people,
whereas introverts are worn out by others and need solitude to recharge their energy.
✓ Sensing (S) versus intuition (N). The sensing type prefers concrete things, whereas intuitives prefer
abstract concepts.
✓ Thinking (T) versus feeling (F). Thinking individuals base their decisions more on logic and reason,
whereas feeling individuals base their decisions more on feelings and emotions.
✓ Judging (J) versus perceiving (P). People who are the judging type enjoy completion or being
finished, whereas perceiving types enjoy the process and open-ended situations

Personality Traits at Work

Locus of control
The degree to which an individual believes that his or her behavior has a direct impact on the consequences of
that behavior.
✓ Internal locus of control
individuals who believe they are in control of their lives.
✓ External locus of control
individuals believe that external forces dictate what happens to them.
Self-efficacy
An individual’s beliefs about his or her capabilities to perform a task
Authoritarianism
The extent to which an individual believes that power and status differences are appropriate within hierarchical
social systems like organizations
Machiavellianism
Behavior directed at gaining power and controlling the behavior of others
Self-esteem
The extent to which a person believes that he or she is a worthwhile and deserving individual
Risk propensity
The degree to which an individual is willing to take chances and make risky decisions

Emotional Intelligence
Emotional Intelligence (EQ)
The extent to which people are self-aware, manage their emotions, motivate themselves, express empathy for
others, and possess social skills
EQ various dimensions can be described as follows:
✓ Self-awareness. It refers to a person’s capacity for being aware of how they are feeling. In general,
more self-awareness allows people to more effectively guide their own lives and behaviors.
 ✓ Managing emotions. This refers to a person’s capacities to balance anxiety, fear, and anger so those
emotions do not overly interfere with getting things accomplished.
✓ Motivating oneself. This refers to a person’s ability to remain optimistic and to continue striving in the
face of setbacks, barriers, and failure.
✓ Empathy. This refers to a person’s ability to understand how others are feeling, even without being
explicitly told.
✓ Social skill. This refers to a person’s ability to get along with others and to establish positive
relationships

Attitudes and Individual Behavior

Attitudes
Complexes of beliefs and feelings that people have about specific ideas, situations, or other people
Cognitive Dissonance
Caused when an individual has conflicting attitudes

Work-Related Attitudes
Job satisfaction or dissatisfaction
An attitude that reflects the extent to which an individual is gratified by or fulfilled in his or her work
Organizational commitment
An attitude that reflects an individual’s identification with and attachment to the organization itself

Affect and Mood in Organizations

Positive affectivity
A tendency to be relatively upbeat and optimistic, have an overall sense of well-being, see things in a positive
light, and seem to be in a good mood
Negative affectivity
A tendency to be generally downbeat and pessimistic, see things in a negative way, and seem to be in a bad
mood

Perception and Individual Behavior

Perception
The set of processes by which an individual becomes aware of and interprets information about the
environment
Selective perception
The process of screening out information that we are uncomfortable with or that contradicts our beliefs
Stereotyping
The process of categorizing or labelling people on the basis of a single attribute
 Perception and Attribution
Attribution
The process of observing behavior and attributing causes to it
The basic framework around which we form attributions is
✓ Consensus (the extent to which other people in the same situation behave the same way)
✓ Consistency (the extent to which the same person behaves in the same way at different times)
✓ Distinctiveness (the extent to which the same person behaves in the same way in other situations)

Stress and Individual Behavior

Stress
An individual’s response to a strong stimulus, which is called a stressor
General Adaptation Syndrome (GAS)
General cycle of the stress process
The General Adaptation Syndrome
The GAS represents the normal process by which we react to stressful events.
Stage 1: alarm—we feel panic and alarm, and our level of resistance to stress drops.
Stage 2: resistance—represents our efforts to confront and control the stressful circumstance.
Stage 3: exhaustion—and just give up or quit.

Personality Types
Type A
Individuals who are extremely competitive, are very devoted to work, and have a strong sense of time urgency
Type B
Individuals who are less competitive, are less devoted to work, and have a weaker sense of time urgency

Causes and Consequences of Stress

Organizational Stressors

Causes of Work Stress

There are several causes of work stress in organizations. Four general sets of organizational stressors are
task demands, physical demands, role demands, and interpersonal demands.
 Causes and Consequences of Stress
Consequences of Stress
Negative personal consequences
✓ Behavioral—smoking, alcoholism, overeating, drug abuse.
✓ Psychological—sleep disturbances, depression.
✓ Medical—heart disease, stroke, backaches, ulcers, skin conditions.
Negative work-related consequences
✓ Poor quality work output and lower productivity.
✓ Job dissatisfaction, low morale, and a lack of commitment.
✓ Withdrawal through indifference and absenteeism
Individual Consequences of Stress
Burnout
A feeling of exhaustion that may develop when someone experiences too much stress for an extended period
of time

Managing Stress
Stress Management Strategies for Individual
➢ Regular exercise
➢ Relaxation
➢ Time management
➢ Support group

Creativity in Organizations
Creativity
The ability of an individual to generate new ideas or to conceive of new perspectives on existing ideas
The Creative Individuals
These attributes generally fall into three categories:
✓ Background Experiences and Creativity
creative individuals were raised in environments in which creativity was nurtured.
✓ Personal Traits and Creativity
traits shared by most creative people are openness, an attraction to complexity, high levels of energy,
independence and autonomy, strong self-confidence, and a strong belief that one is, in fact, creative
✓ Cognitive Abilities and Creativity
are an individual’s power to think intelligently and to analyze situations and data effectively
Divergent thinking
is a skill that allows people to see differences among situations, phenomena, or events.
Convergent thinking
is a skill that allows people to see similarities among situations, phenomena, or events.

Types of Workplace Behavior

Workplace behavior
A pattern of action by the members of an organization that directly or indirectly influences organizational
effectiveness
Performance behaviors
The total set of work-related behaviors that the organization expects the individual to display
Withdrawal Behaviors
 Absenteeism
When an individual does not show up for work
Turnover
When people quit their jobs
Organizational Citizenship
The behavior of individuals that makes a positive overall contribution to the organization
Determinants of Organizational Citizenship
✓ Individual’s personality, attitudes and needs
✓ Social context of the workplace
✓ Organizations capacity to reward citizenship
Dysfunctional Behaviors
Those that detract from, rather than contribute to, organizational performance
➢ Absenteeism and turnover
➢ Theft and sabotage
➢ Sexual and racial harassment
➢ Politicized behavior
➢ Intentionally misleading others
➢ Spreading malicious rumors
➢ Workplace violence
 CHAPTER 6
The Basic Elements of Organizing
Organization structure and design
Refers to the overall set of elements that can be used to configure an organization.
Job specialization
The degree to which the overall task of the organization is broken down and divided into smaller component
parts
➢ Work teams
An alternative to job specialization that allows an entire group to design the work system it will use to
perform an interrelated set of tasks.

Alternatives to Specialization
Job rotation
An alternative to job specialization that involves systematically moving employees from one job to another
Job enlargement
An alternative to job specialization that increases the total number of tasks that workers perform
Job characteristics approach
An alternative to job specialization that suggests that jobs should be diagnosed and improved along five core
dimensions, taking into account both the work system and employee preferences
Five Core Dimensions
➢ Skill variety, the number of things a person does in a job
➢ Task identity, the extent to which the worker does a complete or identifiable portion of the total job
➢ Task significance, the perceived importance of the task
➢ Autonomy, the degree of control the worker has over how the work is performed
➢ Feedback, the extent to which the worker knows how well the job is being performed

Grouping Job: Departmentalization

Departmentalization
The process of grouping jobs according to some logical arrangement

Establishing Reporting Relationships

Chain of command
A clear and distinct line of authority among the positions in an organization
Span of management
The number of people who report to a particular manager

Tall Versus Flat Organizations

In recent years, managers have begun to focus attention on the optimal number of layers in their organizational
hierarchy. Having more layers results in a taller organization, whereas having fewer layers results in a flatter
organization.
Tall Organizations
➢ Are more expensive because of the number of managers involved.
➢ Foster more communication problems because of the number of people through whom information
must pass.
Flat Organizations
➢ Lead to higher levels of employee morale and productivity.
➢ Create more administrative responsibility for the relatively few managers.
➢ Create more supervisory responsibility for managers due to wider spans of control.

Distributing Authority
Authority
Power that has been legitimized by the organization
Delegation
The process by which a manager assigns a portion of his or her total workload to others
Reasons for Delegation:
➢ To enable the manager to get more work done by utilizing the skills and talents of subordinates.
➢ To foster development of subordinates by having them participate in decision making and problem
solving.

Decentralization and Centralization

Decentralization
The process of systematically delegating power and authority throughout the organization to middle and lower
level managers
Centralization
The process of systematically retaining power and authority in the hands of higher-level managers

Coordinating Activities
Coordination
The process of linking the activities of the various departments of the organization
The Need for Coordination:
➢ The primary reason for coordination is that departments and work groups are interdependent—they
depend on one another for information and resources to perform their respective activities.
➢ The greater the interdependence between departments, the more coordination the organization
requires if departments are to be able to perform effectively

Three Major Forms of Interdependence

Pooled interdependence
When units operate with little interaction; their output is pooled at the organizational level
Sequential interdependence
When the output of one unit becomes the input for another in a sequential fashion
Reciprocal interdependence
When activities flow both ways between units

The Bureaucratic Model of Organization Design

Bureaucracy
A model of organization design based on a legitimate and formal system of authority

According to Weber, the ideal bureaucracy exhibits five basic characteristics:

➢ The organization should adopt a distinct division of labor, and each position should be filled by an
expert.
➢ The organization should develop a consistent set of rules to ensure that task performance is uniform.
➢ The organization should establish a hierarchy of positions or offices that creates a chain of command
from the top of the organization to the bottom.
➢ Managers should conduct business in an impersonal way and maintain an appropriate social distance
between themselves and their subordinates.
➢ Employment and advancement in the organization should be based on technical expertise, and
employees should be protected from arbitrary dismissal

The Situational Influences on Organization Design

Situational view of organization design
Based on the assumption that the optimal design for any given organization depends on a set of relevant
situational factors

Core Technology
Technology
Conversion process used to transform inputs into outputs
Three basic forms of technology were identified by Joan Woodward.
1. Unit or small batch technology – the product is custom made to customer specifications and produced in
small quantities.
2. Large batch or mass production technology – the product is manufactured in assembly line fashion by
combining components parts into another part or finished product.
3.Continuous process technology- raw materials are transformed to a finished product by a series of machine

Environment
Mechanistic organization
Similar to the bureaucratic model, most frequently found in stable environments
Organic organization
Very flexible and informal model of organization design, most often found in unstable and unpredictable
environments
Differentiation
Extent to which the organization is broken down into subunits
Integration
Degree to which the various subunits must work together in a coordinated fashion

Organizational Size and Life Cycle

Organizational size
Total number of full-time or full-time equivalent employees
Organizational life cycle
Progression through which organizations evolve as they grow and mature

Basic Forms of Organization Design

Functional (U-Form) Design
functional design Based on the functional approach to departmentalization
➢ Requires coordination across all departments.
➢ Resembles functional departmentalization in its advantages and disadvantages.
➢ Promotes a narrowing functional rather than broader organizational focus
➢ Tends to promoter centralization
➢ Is common in smaller organizations

Conglomerate (H-Form) Design

Used by an organization made up of a set of unrelated businesses
➢ Organization consists of a set of unrelated businesses with a general manager for each business.
➢ Holding-company design is similar to product departmentalization.
➢ Coordination is based on the allocation of resources across companies in the portfolio.
➢ Design has produced only average to weak financial performance; has been abandoned for other
approaches

Divisional (M-Form) Design

Based on multiple businesses in related areas operating within a larger organizational framework
➢ Is based on multiple businesses in related areas operating within a larger organizational framework;
following a strategy of related diversification.
➢ Activities are decentralized down to the divisional level; others are centralized at the corporate level.
➢ The largest advantages of the M-form design are the opportunities for coordination and sharing of
resources
Matrix Design
Based on two overlapping bases of departmentalization
➢ A set of product groups or temporary departments are superimposed across the functional
departments.
➢ Employees in the matrix become members of both their departments and a project team under a
project manager.
➢ The matrix creates a multiple command structure in which an employee reports to both departmental
and project managers

Hybrid Design
Is based on two or more organization design forms such as a mixture of related divisions and a single
unrelated division.

Emerging Issues in Organization Design

Team organization
An approach to organization design that relies almost exclusively on project-type teams, with little or no
underlying hierarchy
Virtual organization
One that has little or no formal structure
Learning organization
One that works to facilitate the lifelong learning and personal development of all its employees while
continually transforming itself to respond to changing demands and needs