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Organizational
Behavior
UNIT IV: MOTIVATION
CASE- Laziness is Contagious (WATCH MOVIE- MONEYBALL)
Being lazy is often a quality that is shunned or looked down upon in the workplace. When
someone is unwilling to put energy forth into their work, they are, essentially, not engaged with their
job. It is still unclear whether someone can have a “lazy” personality, but we can all most likely
recall times when we did not want to or commit to putting forth the energy needed to do our
work. In many cases, this led to procrastination or excessive delegation, resulting in a failure to
meet tight deadlines. One laziness behavior includes fleeing the scene when one does not want to
work; another is one will play the victim and make excuses to make-up for a lack of putting forth
effort.
Although there has not been much research on laziness (perhaps anyone who has attempted to
has not been able to muster the effort!), the research that does exist suggests that trait attributions
of laziness are complex. For example, people tend to acknowledge that they have more
personality traits than others (e.g., “I am a very complex, multi-faceted person.”). Although
someone would not hesitate to say that they are “very energetic”, people tend to qualify laziness
with “diminutive” words (e.g., “I am a little bit lazy…”). Similar peculiar effects emerge when
considering others’ attributions as well. Even though halo biases can emerge for positive
attributions of others (e.g., “She could have easily lied to me about accidentally giving an extra
twenty dollars in change back to the customer when she first started working here. She is a
fantastic, industrious, and honest person!”), horns biases do not occur as broadly as these positive
traits when considering laziness (e.g., a supervisor witnessing an employee lying when she first
started working there, may think that she will lie in many circumstances, but will not see this person
as lazy).
Even more worrisome, laziness can subtly escalate or catch on with others. For instance, one lazy
behavior can lead to another, and sunk costs can add up to the point where you reason you will
“start over again tomorrow”. Furthermore, recent research suggests that laziness can be
contagious—participants, unaware of their shifts toward laziness, started to endorse the same lazy
behaviors and decisions that fictional, computer-generated participants were making. The
implications here are very intriguing… “for example, if your lazy boss rewards you for having
invested more effort in your work, will you become more or less lazy?”
Regardless of the negative air surrounding laziness, some have found merit in its practice. For
example, Michael Lewis, author of Moneyball, asserts that laziness is not necessarily a bad thing
and has even helped him succeed: “My laziness serves as a filter… Something has to be really
good before I’ll decide to work on it.”
CASE- Laziness is Contagious
Questions
 Do you consider laziness to be more of a personality trait, or more of a
motivational state that we experience from time-to-time? Why? Is there a
potential that it could be a little bit of both?
 Do you agree or disagree with Michael Lewis that there is an upside to
laziness? Why or why not?
 How do you think managers and organizations can “manage laziness” so
that the negative effects would be minimized, and the positive effects
maximized? What sorts of programs and initiatives could an organization
implement that would help do so?
 Meaning and Importance of
motivation, Theories- Vroom’s
Valence - Expectancy Theory,
Intrinsic motivation by Ken Thomas,

Learning Behaviour modification,

Motivation and organisational
Objectives effectiveness,
Measurement of motivation using
standard questionnaire.
 Motivation

 Motivation is the processes that

account for an individual’s
intensity, direction, and
persistence of effort toward
attaining a goal.
 The level of motivation varies both
between individuals and within
individuals at different times.
Three Key Elements of
Motivation
 The three key elements of motivation are:

1. Intensity: concerned with how hard a

person tries.
2. Direction: the orientation that benefits
the organization.
3. Persistence: a measure of how long a
person can maintain his/her effort.
Early Theorists of Motivation
Maslow's
Need
Hierarchy
Theory
(1908-1970)
Early Theories of Motivation (1950's)
1. Maslow’s Hierarchy of Needs

People have a variety of needs and are motivated to meet the

basic needs before pursuing higher level needs.
Outcome

 Maslow’s need theory has received wide

recognition, particularly among
practicing managers.
 It is intuitively logical and easy to
understand and some research has
validated it.
 However, most research does not, and
it has not been frequently researched
since the 1960s.
 Early Theories of Motivation (1950's)
2. Herzberg's two Factor Theory

 "What do people want

from their jobs?"
 Situations in which people
feel exceptionally good or
bad about their jobs.
 This led to two-factor
theory I.e. motivation-
hygiene theory
 Satisfaction: Intrinsic
factors
 Dissatisfaction:
Extrinsic factors
 Opposite of
satisfaction is not
dissatisfaction.
 Removing
dissatisfying character
istics from a job does
not necessarily make
the job satisfying.
 Hygiene factors:
When they're
adequate, people will
not be dissatisfied
neither will they be
satisfied.
 Motivators: factors
directly associated
with the job,
outcomes.
Criticisms of Herzberg’s theory:

 Limited because it relies on self-reports.

 They may be equally important to an
individual.
 What may be hygiene factor to one, may be
motivating factor to another.
 You have 5 targets set up in front of you each
farther away than the last. Target A sits almost
within arm's reach. If you hit it, you get ₹ 20.
Target B is a bit farther out and pays ₹40 but
Early Theories of only about 80% of the people who try can hit
Motivation (1950's) it. Target C pays ₹ 80 and about half the
people who try can hit it. Very few people
can hit target D, but the payoff is ₹160 for
3. McClelland’s those who can do. Finally target E
Theory of Needs pays ₹ 320, but it's almost impossible to
achieve. Which one would you try for?
 If you chose C, you are likely to be a high
Achiever.
 High achievers: Perform best when they perceive
their probability of success as 0.5.
 Dislike gambling, low odds (no challenge).
 Like to set goals that requires stretching themselves a
little.
The theory focuses on three needs:
 Need for achievement (nAch): Drive to excel, to achieve in
relation to a set of standards, to strive to succeed.
 Need for power (nPow): Need to make others behave in a
way that they would not have behaved otherwise.
 Need for affiliation (nAfl): Desire for friendly and close
interpersonal relationships.
 4. Douglas
McGregor-Theory
X & Y (1906-1964)

 Management Professor
 Advocate for the human relations
approach
 Interested in what motivates
people to work
 Studied how Our beliefs
shapes our behaviour, and
that affects ours' behaviour.
 Theory X
 The average man, works as little as possible (mostly of
the industrial era)
 He lacks ambition dislikes responsibility and prefers to
follow
 He is inherently self-centered indifferent to
organizational needs
 He is by nature resistant to change
 Aren't very smart, they're easily manipulated
 "Without active intervention by management, people
would be passive, even resistant to organizational
needs. They must therefore be persuaded,
rewarded, punished, controlled , and their activities
must be directed".
 If Managers have Theory X beliefs about people, they
will follow control, strict policies, punishments and
rewards.
Theory Y
 The expenditure of physical and mental effort and work is
as natural as play or rest.
 External control of threat of punishment are not the only
means for bringing about effort to organizational
objectives man will exercise self-direction and self-
control in the service of objectives to which he
is committed.
 Under the conditions of modern industrial life the
intellectual potentialities of the average human being or
only partially utilized.
 Commitment to objectives is a function of the rewards
associated with their achievement.
 The average human being learns under proper conditions
not only to accept but also to seek responsibility.
 If managers have Theory Y beliefs about people, they will
arrange things so that individuals can achieve their own
goals as well as the goals of the organization.
 THEORY Y
Self- Actualization

Esteem

THEORY X Social/belonging

Safety/security

Physiological
Contemporary Theories of
Motivation
Self Determination Theory
Goal Setting Theory
MBO: Management By Objectives
Self-Efficacy Theory
Reinforcement Theory
Expectancy Theory
Intrinsic Rewards Theory
Expectancy
Theory

 Most widely
accepted
motivation theory.
 Victor Vroom's-
Expectancy Theory.
 Professor at Yale
School of
Management.
 Expectancy Theory

Expectancy theory: A tendency to act in a certain way

depends on an expectation that the act will be followed
by a given outcome and on the attractiveness of that
outcome to the individual.

Three relationships
EXPECTANCY INSTRUMENTALITY VALENCE
Effort-performance Performance-reward Rewards-personal goals
relationship relationship relationship
Expectancy Theory

Expectancy theory helps Three questions

explain why a lot of employees need to
workers aren’t motivated answer in the affirmative
and do only the if their motivation is to be
minimum. maximized:

If I give maximum effort, If I get a good

If I’m rewarded, are the
will it be recognized in performance appraisal,
rewards attractive to
my performance will it lead to
me?
appraisal? organizational rewards?
 Intrinsic Rewards Theory

Four Intrinsic Rewards that drive

employee engagement by
KKENNETH THOMAS:
 Sense of meaningfulness
 Sense of choice
 Sense of competence
 Sense of progress
Most of the motivational models used today were
developed in earlier eras, when work and workers
were different.

Intrinsic rewards have become more important and

more prevalent in the workplace today.

Extrinsic rewards remain significant for workers and

Pay is an important consideration for most workers in
accepting a job, and unfair pay can be a strong de-
motivator.

However, after people have taken a job and issues

of unfairness have been settled, it is found that
extrinsic rewards are less important, as day-to-day
motivation is more strongly driven by intrinsic
rewards.
 Today’s workers are asked to self-manage to a significant
degree—to use their intelligence and experience to direct
their work activities to accomplish important organizational
purposes. This is how today’s employees add value—
innovating, problem solving and improvising to meet the
conditions they encounter to meet customers’ needs.
 The self-management process involves four key steps:
 Committing to a meaningful purpose
 Choosing the best way of fulfilling that purpose
 Making sure that one is performing work activities
competently, and
 Making sure that one is making progress to achieving the
purpose.
 Each of these steps requires workers to make a judgment—
about the meaningfulness of their purpose, the degree
of choice they have for doing things the right way, the
competence of their performance, and the actual
progress being made toward fulfilling the purpose. These
four judgments are the key factors in workers’ assessments
of the value and effectiveness of their efforts—and the
contribution they are making.
Each reward has
its own unique
building blocks.
Building a sense of
competence
involves actions
that are different
than those used in
building a sense of
choice, for
example.
 Self
Determination
Theory
Edward L. Deci Professor of
Psychology in the Social
Sciences at the University of
Rochester, and director of its
human motivation program.
He is well known in psychology
for his theories of intrinsic and
extrinsic motivation and basic
psychological needs.
With Richard Ryan, he is the
co-founder of self-
determination theory (SDT), an
influential contemporary
motivational theory.
Self-Determination Theory
 People prefer to feel they have control over their
actions.
 Focus on the beneficial effects of intrinsic motivation
and harmful effects of extrinsic motivation.
 Cognitive evaluation theory - When people are
paid for work, it feels less like something they want
to do and more like something they have to do.
 Proposes that in addition to being driven by a need
for autonomy, people seek ways to achieve
competence and positive connections to others.
Self-Determination Theory
 What does self-determination theory suggest for
providing rewards?
 Self-concordance: considers how strongly people’s
reasons for pursuing goals are consistent with their
interests and core values.
 What does all of this mean?
 For individuals:
 Choose your job for reasons other than extrinsic
rewards.
 For organizations:
 Provide intrinsic as well as extrinsic incentives.
 Goal-Setting Theory

• In 1968, Edwin A. Locke published

his groundbreaking Goal Setting
Theory in Toward a Theory of Task
Motivation and Incentive.

• In it, he demonstrated that

employees are motivated by clear,
well-defined goals and feedback.
 Goal-Setting Theory

Goal-Setting Theory
•Goals tell an employee what needs to be
done and how much effort is needed.
Evidence suggests:
•Specific goals increase performance.
•Difficult goals, when accepted, result in
higher performance than do easy goals.
•Feedback leads to higher performance
than does non-feedback.
 Goal-Setting Theory

 Three other factors influencing the goals-

performance relationship: (Assumptions of Goal-
setting Theory)
 Goal commitment
 Task characteristics: Simple & Independent
 National culture
 Goal-Setting Theory

 People differ in the way they regulate their thoughts

and behaviors based on FOCUS: (For eg: studying
for an exam)
 Those with a promotion focus strive for
advancement and accomplishment and
approach conditions that move them closer
toward desired goals.
 Thosewith a prevention focus strive to fulfill duties
and obligations and avoid conditions that pull
them away from desired goals.
Goal-Setting Theory into
Practice (MBO)
CASE- Laziness is Contagious (WATCH MOVIE- MONEYBALL
Being lazy is often a quality that is shunned or looked down upon in the workplace. When
someone is unwilling to put energy forth into their work, they are, essentially, not engaged with their
job. It is still unclear whether someone can have a “lazy” personality, but we can all most likely
recall times when we did not want to or commit to putting forth the energy needed to do our
work. In many cases, this led to procrastination or excessive delegation, resulting in a failure to
meet tight deadlines. One laziness behavior includes fleeing the scene when one does not want to
work; another is one will play the victim and make excuses to make-up for a lack of putting forth
effort.
Although there has not been much research on laziness (perhaps anyone who has attempted to
has not been able to muster the effort!), the research that does exist suggests that trait attributions
of laziness are complex. For example, people tend to acknowledge that they have more
personality traits than others (e.g., “I am a very complex, multi-faceted person.”). Although
someone would not hesitate to say that they are “very energetic”, people tend to qualify laziness
with “diminutive” words (e.g., “I am a little bit lazy…”). Similar peculiar effects emerge when
considering others’ attributions as well. Even though halo biases can emerge for positive
attributions of others (e.g., “She could have easily lied to me about accidentally giving an extra
twenty dollars in change back to the customer when she first started working here. She is a
fantastic, industrious, and honest person!”), horns biases do not occur as broadly as these positive
traits when considering laziness (e.g., a supervisor witnessing an employee lying when she first
started working there, may think that she will lie in many circumstances, but will not see this person
as lazy).
Even more worrisome, laziness can subtly escalate or catch on with others. For instance, one lazy
behavior can lead to another, and sunk costs can add up to the point where you reason you will
“start over again tomorrow”. Furthermore, recent research suggests that laziness can be
contagious—participants, unaware of their shifts toward laziness, started to endorse the same lazy
behaviors and decisions that fictional, computer-generated participants were making. The
implications here are very intriguing… “for example, if your lazy boss rewards you for having
invested more effort in your work, will you become more or less lazy?”
Regardless of the negative air surrounding laziness, some have found merit in its practice. For
example, Michael Lewis, author of Moneyball, asserts that laziness is not necessarily a bad thing
and has even helped him succeed: “My laziness serves as a filter… Something has to be really
good before I’ll decide to work on it.”
CASE- Laziness is Contagious
Questions
 Do you consider laziness to be more of a personality trait, or more of a
motivational state that we experience from time-to-time? Why? Is there a
potential that it could be a little bit of both?
 Do you agree or disagree with Michael Lewis that there is an upside to
laziness? Why or why not?
 How do you think managers and organizations can “manage laziness” so
that the negative effects would be minimized, and the positive effects
maximized? What sorts of programs and initiatives could an organization
implement that would help do so?
 New Ideas in Human Motivation
Eustress, Strength, Hope

Eustress – healthy, normal stress

Opportunities Obstacles
Challenges Barriers
Energy Frustration

Dealing with stress is all about perception. A positive attitude can help you turn stress into a
learning opportunity.
 New Ideas in Human Motivation:
Positive Energy & Full Engagement

Management of Energy

Build
Expend
Positive
Energy
Energy

"The core problem with working

longer hours is that time is a
Renewal finite resource. Energy is a
different story."
and
Recovery HBR
 Social Exchange and
Equity Theory
 Equity theory focuses on individual-environment
interaction
 Concerned with social processes that influence
motivation and behavior

 Etzioni - exchange relationships

◦ Committed

◦ Calculated

◦ Alienated
 Individual-Organizational
Exchange Relationship
Organization Individual
• Organizational goals • Physiological needs
Demands

• Departmental • Security needs

objectives • Other
• Job tasks
Contributions

• Developmental
• Company status potential
• Benefits • Employee knowledge
• Income • Employee skills and
abilities
SOURCE: J. P. Campbell, M. D. Dunnette, E. E. Lawler, III. And K. E. Weick, Jr. Managerial Behavior. Performance and Effectiv eness (New York: McGraw-Hill,1970. Reproduced with permission from
McGraw-Hill, Inc.
Adam’s Theory of Inequity

Inequity – The situation in

which a person perceives he
or she is receiving less than
he, or she is giving, or is giving
less than he or she is
receiving
Equity and Inequity at Work

Person Comparison Other

Equity Outcomes = Outcomes

Inputs Inputs
Negative Outcomes < Outcomes
Inequity Inputs Inputs

Positive Outcomes > Outcomes

Inequity Inputs Inputs
 Alter Alter the person’s outcomes

Alter Alter the person’s inputs

Alter Alter the comparison other’s outputs

Strategies for
Resolution of Alter Alter the comparison other’s inputs

Inequity
Change Change who is used as a comparison other

Rationalize Rationalize the inequity

Leave Leave the organizational situation

New Perspectives on Equity Theory

Revision proposes three types of individuals based on preferences for equity

I prefer an equity
ratio equal to that
of my comparison
other

1. Equity Sensitive
New Perspectives on Equity Theory

I am comfortable with
an equity ratio less
than that of my
comparison other

2. Benevolent
New Perspectives on Equity Theory

3. Entitled

I am comfortable with
an equity ratio greater
than that of my
comparison other
 Cultural Differences

 Motivational theories are culturally bound

 Research results differ among cultures
Many Ways to Motivate People

 Training
 Coaching
 Task assignments
 Rewards contingent
on good performance
 Valued rewards available
 Performance Management

Performance Management – a
process of defining, measuring,
appraising, providing feedback on,
and improving performance
Performance Management Process

Improved Performance

Define performance
in behavioral terms

Measure and assess

performance

Feedback for goal

setting and planning

Copyright ©2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible web site, in whole or in part.
 Performance Appraisal Purposes

Performance
appraisal – the
evaluation of a
person’s performance

Develops information
Provides feedback to Identifies employees’ Decides promotions Decides demotions about the
organization’s
employees developmental needs and rewards and terminations
selection and
placement decisions
Actual & Measured Performance

True
Assessment
 Actual & Measured Performance

Performance Evaluator’s
overlooked situational
by evaluator factors
True Unreliability Disagreement
Assessment
Deficiency
Employee’s
Invalidity temporary
personal
factors

Actual Measured
Performance Poorly defined Performance
task performance
 Begin with something positive

Refer to specific verbatim statements

Communicating and observable behaviors

Performance
Feedback
Focus on changeable behaviors

Both supervisor and employee should

plan and organize before the session
 360-Degree Feedback

Self
Evaluati
on
360-Degree Feedback
Manage Custom
r er
A process of self- Evaluati Evaluati
evaluation and on Feed on
evaluations by Back
a manager, peers,
direct reports, and
possibly customers Peer
Evaluati Reports
on
A GOOD PERFORMANCE APPRAISAL SYSTEM
MUST AIM TO
Develop People & Enhance Careers

Supervisor should: Employee should:

 Coach and dev elop
employees
 Be v ulnerable and open
to challenge
 Maintain a position of
responsibility
 Listen empathetically
 Encourage employee to
talk about hope and
aspirations
 Take responsibility for
growth & dev elopment
 Challenge supervisor
about future dev elopment
 Express indiv idual
preferences and goals
  Key Characteristics
Effective  Validity
Appraisal  Reliability
Systems  Responsiveness
 Flexibility
 Equitableness
 Individual or Team Rewards?

Individual rewards Team rewards

• Foster independent •Emphasize
behavior cooperation and
• May lead to joint efforts
creative thinking •Emphasize
and novel solutions sharing
• Encourage information,
competitive striving knowledge, and
within a work team expertise
Performance and Rewards

Performance
Reward

Organizations get
the performance they reward,
NOT
the performance they say they want
Correcting Poor Performance

Identify primary cause or responsibility

Determine if personal or organizational

Determine problem’s source

Develop corrective plan of action

 Variable-
 What to Pay:
Pay  Complex process that entails
Programs balancing internal equity and
external equity.
and  Some organizations prefer to
Employee pay leaders by paying above
market.
Motivation  Paying more may get better-
(What to qualified and more highly
motivated employees who
pay) (1 of may stay with the firm longer.
8)
 Variable-  How to Pay:
Pay  Variable pay programs:
Programs  Piece-rate plans

and  Merit-based pay

Employee  Bonuses
Profit sharing
Motivation 

 Employee stock ownership

(How to plans

pay)  Earnings therefore fluctuate up

and down.
(2 of 8)
 Variable-
Pay  Piece-Rate Pay

Programs  A pure piece-rate plan

provides no base salary and
and pays the employee only for
what he or she produces.
Employee  Limitation: not a feasible
Motivation approach for many jobs.

(Piece-Rate  The main concern for both

individual and team piece-
Pay rate workers is financial risk.

(3 of 8)
 Variable-  Merit-Based Pay

Pay  Allows employers to

differentiate pay based on
Programs performance.

and  Creates perceptions of

relationships between
Employee performance and rewards.

Motivation  Limitations:
Based on annual
(Merit- 
performance appraisals.
Based Pay)  Merit pool fluctuates.
(4 of 8)  Union resistance.
 Bonuses
Variable- 

 An annual bonus is a
Pay significant component of total
compensation for many jobs.
Programs
 Increasingly include lower-
and ranking employees.
Employee  Many companies now
routinely reward production
Motivation employees with bonuses
(Bonus) when profits improve.
 Downside: employees’ pay is
(5 of 8) more vulnerable to cuts.
 Variable-Pay  Profit-Sharing Plans
Programs  Organization-wide programs
that distribute compensation
and based on some established
formula centered around a
Employee company’s profitability.
Motivation  Appear to have positive
effects on employee attitudes
(Profit-Sharing at the organizational level.
Plans)  Employees have a feeling of
(6 of 8) psychological ownership.
  Employee Stock Ownership Plan
(ESOP)

Variable-  A company-established
benefit plan in which
Pay employees acquire stock,
often at below-market prices,
Programs as part of their benefits.
and  Increases employee
satisfaction and innovation.
Employee  Employees need to
Motivation psychologically experience
ownership.
ESOP  Can reduce unethical
(7 of 8) behavior.
 Can be used for community
wealth building.
 Variable-
Evaluation of Variable Pay
Pay


 Do variable-pay programs
Programs increase motivation and
productivity?
and
 Generally, yes, but that
Employee doesn’t mean everyone is
equally motivated by
Motivation them.
(8 of 8)
Flexible Benefits Turn Benefits Into Motivators

 Developing a Benefits Package

 Flexible benefits individualize rewards.
 Allow each employee to choose the compensation
package that best satisfies his or her current needs and
situation.
 Today, almost all major corporations offer flexible benefits,
BUT their usage is not yet global.
Motivational Benefits of Intrinsic Rewards

 Employee Recognition Programs

 Organizations are increasingly recognizing that
important work rewards can be both intrinsic and
extrinsic.
 Rewards are intrinsic in the form of employee
recognition programs and extrinsic in the form of
compensation systems.