MBA 501

Principles of Management &

Organizational Behavior
[Chapter 07*]

Hanif Mahtab
email: hanif@iub.edu.bd


 Motivation Concepts

Organizational Behavior
Robbins & Judge

Chapter 07
 What Is Motivation?
Motivation
The processes that account for an individual’s intensity, direction,
and persistence of effort toward attaining a goal
Key Elements
Direction
Intensity: How hard a person tries
Direction: Toward beneficial goal
Intensity Persistence
Persistence: How long a person tries

 What Is Motivation?

Motivation works best when individual needs are compatible with

organizational goals.
 Hierarchy of Needs Theory (Maslow)

Hierarchy of Needs Theory

There is a hierarchy of ve needs: physiological, safety, social, esteem,
and self-actualization; as each need is substantia y satis ed, the next
need becomes dominant.

Self-Actualization
The drive to become what one is capable of becoming
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 Maslow’s Hierarchy of Needs

Lower-Order Needs Self Higher-Order Needs

Needs that are satisfied Esteem Needs that are satisfied
internally; social, esteem,
externally; physiological
and self-actualization
and safety needs Social needs

Safety

Physiological








 Assumptions of Maslow’s Hierarchy

Movement Up the Pyramid

Individuals cannot move to the next higher level until a needs at
the current (lower) level are satis ed.
Individuals MUST move up the hierarchy in order.
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 Theory X & Theory Y
(McGregor)
Having Little Ambition

Theory X Disliking Work

Managers See Workers as…

Avoiding Responsibility

Self-Directed

Theory Y Enjoying Work

Managers See Workers as…
Accepting Responsibility



 Herzberg’s Two-Factor Theory
Hygiene Factors — Extrinsic and related to Dissatisfaction
Salary
Work Conditions
Company Policies

Motivation Factors — Intrinsic and related to Satisfaction

Achievement
Responsibility
Growth
Bottom Line: Satisfaction and dissatisfaction are not opposites of the same thing!
 Comparison of Satis ers and Dissatis ers
Factors
characterizing
events on the job
that led to extreme
job satisfaction

Factors
characterizing
events on the job
that led to extreme
job dissatisfaction
Source: Reprinted by permission of
Harvard Business Review. An exhibit
from One More Time: How Do You
Motivate Employees? by Frederick
Herzberg, September–October 1987.
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Contrasting Views of Satisfaction and
Dissatisfaction
 Contemporary Theories
McCle and’s Theory of Needs
Cognitive Evaluation Theory
Goal-Setting Theory
Reinforcement Theory
Equity Theory
Expectancy Theory
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 David McClelland’s Theory of Needs

Need for Achievement

The drive to excel, to achieve in relation to a set of standards, to strive to succeed
Need for Affiliation
The desire for iendly and close personal relationships
Need for Power
The need to make others behave in a way that they would not have behaved
otherwise
Bottom Line: Individuals have different levels of needs in each of
these areas, and those levels will drive their behavior.
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 Example
Matching High Achievers and Jobs
 Cognitive Evaluation Theory

Cognitive Evaluation Theory

Providing an extrinsic reward for behavior that had been previously only
intrinsica y rewarding tends to decrease the overa level of motivation
The theory may be relevant only to jobs that are neither extremely du nor
extremely interesting.
Hint: For this theory, think about how fun it is to read in the
break, but once reading is assigned to you for a grade, you don’t
want to do it!
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 Goal-Setting Theory
Basic Premise: That specific and difficult goals, with self-
generated feedback, lead to higher performance.
But, the relationship between goals and performance wi depend on:
Goal commitment
“I want to do it & I can do it”
Task characteristics (simple, we -learned)
National culture
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 Goal Setting in Action: MBO Programs

Management By Objectives Programs

Company wide goals and objectives
Goals aligned at a levels
Based on Goal Setting Theory

Management by Objectives (MBO)

A program that encompasses speci c goals, participatively set, for an explicit
time period, with feedback on goal progress
Key elements: Goal specificity; Participative decision making; An explicit
time period; Performance feedback
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Cascading of Objectives
 Linking MBO and Goal-Setting Theory
Goal-Setting
MBO
Theory
Goal Speci city Yes Yes

Goal Di culty Yes Yes

Feedback Yes Yes

No
Participation Yes
(not quali ed)
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 Why MBOs Fail
Unrealistic expectations about MBO results

Lack of commitment by top management

Failure to a ocate reward properly

Cultural incompatibilities
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 Self-E cacy

An individual’s feeling that s/he can complete a task (e.g. “I know I

can!”)

Enhances probability that goals wi be achieved

Not to be confused with:

Self-esteem, which is individuals’ degree of liking or disliking
themselves
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 Reinforcement Theory
Argues that behavior is a function of its consequences

Assumptions:
Behavior is environmenta y caused.
Behavior can be modi ed (reinforced) by providing (contro ing)
consequences.
Reinforced behavior tends to be repeated.
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 Equity Theory
Equity Theory
Individuals compare their job inputs and outcomes with those of others and then
respond to eliminate any inequities

Referent Comparisons:
Self-inside
Self-outside
Other-inside
Other-outside
Equity Theory (cont.)
 Equity Theory (cont.)
Choices for dealing with inequity:
Change inputs (slack o )
Change outcomes (increase output)
Distort/change perceptions of self
Distort/change perceptions of others
Choose a di erent referent person
Leave the eld (quit the job)
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Propositions relating to inequitable pay:
Overrewarded hourly employees produce
more than equitably rewarded employees.
Overrewarded piece-work employees
produce less, but do higher quality piece
work.
Underrewarded hourly employees produce
lower quality work.
Underrewarded employees produce larger
quantities of lower-quality piece work
than equitably rewarded employees.
 Expectancy Theory (Vroom)
A comprehensive theory of motivation that an individual tends to
act in a certain way, in the expectation that the act will be
followed by given outcome, and according to the
attractiveness of that outcome to the individual.
The extent to which individuals are motivated to perform to get a
reward of value to them is based on their belief that their
performance will result in the reward they want.
 Simpli ed Expectancy Theory

Bottom Line: All three links between the boxes must be intact or motivation will not occur.
Thus,
Individuals must feel that if they try, they can perform and
If they perform, they wi be rewarded and
When they are rewarded, the reward wi be something they care about.

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 MBA 501
Principles of Management &
Organizational Behavior
[Chapter 08*]

Hanif Mahtab
email: hanif@iub.edu.bd


 Motivation Concepts

Organizational Behavior
Robbins & Judge

Chapter 08
 Job Design Theory
Job Characteristics Model
Identi es ve job characteristics and their relationship to personal and work outcomes
Characteristics
Skill variety: The degree to which a job requires a variety of different activities
Task identity: The degree to which the job requires completion of a whole and identifiable
piece of work
Task significance: The degree to which the job has a substantial impact on the lives or
work of other people
Autonomy: The degree to which the job provides substantial freedom and discretion to the
individual in scheduling the work and in determining the procedures to be used in carrying
it out
Feedback: The degree to which carrying out the work activities required by a job results in
the individual obtaining direct and clear information about the effectiveness of his or her
performance

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 Job Design Theory (cont.)

Job Characteristics Model
Jobs with ski variety, task identity, task signi cance, autonomy, and for which
feedback of results is given, directly a ect three psychological states of employees:
Knowledge of results
Meaningfulness of work
Personal feelings of responsibility for results
Increases in these psychological states result in increased motivation,
performance, and job satisfaction.
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 Examples of High and Low Job Characteristics
Characteristics Examples
High variety The owner-operator of a garage who does electrical repair, rebuilds engines, does body work, and interacts
. with customers
Low variety A bodyshop worker who sprays paint eight hours a day
High identity A cabinetmaker who designs a piece of furniture, selects the wood, builds the object, and nishes it to
. perfection.
Low identity A worker in a furniture factory who operates a lathe to make table legs
High signi cance Nursing the sick in a hospital intensive care unit.
Low signi cance Sweeping hospital oors
High autonomy A telephone installer who schedules his or her own work for the day, and decides on the best techniques
. for a particular installation.
Low autonomy A telephone operator who must handle calls as they come according to a routine, highly speci ed
procedure
High feedback An electronics factory worker who assembles a radio and then tests it to determine if it operates properly
. An electronics factory worker who assembles a radio and then routes it to a quality control inspector who
Low feedback tests and adjusts it
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The Job Characteristics Model
 Computing a Motivating Potential Score

People who work on jobs with high core dimensions are genera y more
motivated, satis ed, and productive.
Job dimensions operate through the psychological states in in uencing
personal and work outcome variables rather than in uencing them
directly.
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 Job Design and Scheduling
Job Rotation
The periodic shi ing of a worker
om one task to another
Job Enlargement
The horizontal expansion of jobs
Job Enrichment
The vertical expansion of jobs
Guidelines for Enriching a Job
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 Alternative Work Arrangements

Flextime
Employees work during a common core time period each day but have discretion
in forming their total workday om a exible set of hours outside the core.

Job Sharing
The practice of having two or more people split a 40-hour-a-week job
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 Alternative Work Arrangements (cont.)

Telecommuting
Employees do their work at home on a computer that is linked to
their o ce.
Categories of Telecommuting Jobs
Routine information-handling tasks
Mobile activities
Professional and other knowledge-related tasks
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 Telecommuting
Advantages Disadvantages
Larger labor pool Less direct supervision of employees
Higher productivity Di cult to coordinate teamwork
Less turnover Di cult to evaluate non-quantitative
Improved morale performance
Reduced o ce-space costs
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Performance = f(A x M x O)
 What Is Employee Involvement?
Employee Involvement Program
A participative process that uses the entire capacity of employees and is designed to encourage
increased commitment to the organization’s success
Example
Participative Management
A process in which subordinates share a signi cant degree of decision-making power with their immediate
superiors
Representative Participation
Workers participate in organizational decision making through a sma group of representative employees.
Works Councils
Groups of nominated or elected employees who must be consulted when manage-ment makes decisions
involving personnel
Board Participation
A form of representative participation; employees sit on a company’s board of directors and represent the
interests of the rm’s employees.
Quality Circle
A work group of employees who meet regularly to discuss their quality problems, investigate causes,
recommend solutions, and take corrective actions.
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 Linking EI Programs and Motivation Theories

Theory Y Two-Factor
(Believing Employee Theory
Employees Involvement
Want to Be Programs (Intrinsic
Motivation)
Involved)

ERG Theory
(Employee
Needs)








 Rewarding Employees
What to Pay (Internal vs. external equity)

How to Pay (e.g., Piece rate, merit based, bonuses, profit sharing, gain
sharing, ESOPs, skill-based pay)

What Bene ts to O er (e.g., Flexible benefits)

How to Recognize Employees

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 Variable Pay Programs

A portion of an employee’s pay is based on some individual and/or
organization measure of performance.
Piece rate pay plans
Pro t sharing plans
Gain sharing plans
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 Skill-based Pay Plans
Pay levels are based on how many ski s employees have or how many jobs
they can do.
Bene ts: Drawbacks:
Provides staffing flexibility Lack of additional learning opportunities
Facilitates communication across the that wi increase employee pay
organization Continuing to pay employees for ski s
Lessens “protection of territory” that have become obsolete
behaviors Paying for ski s that are of no immediate
Meets the needs of employees for use to the organization
advancement (without promotion) Paying for a ski , not for the level of
Leads to performance improvements employee performance for the particular
ski
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 Linking Skill-based Plans and Motivation
Theories

Equity
Reinforcement Skill-based Pay
Theory Plans Theory

McClelland’s
ERG Theory
Need for
(Growth)
Achievement



 Flexible Bene ts
Employees tailor their bene t program to meet their personal need by picking and
choosing om a menu of bene t options.
Modular Plans
Predesigned bene ts packages for speci c groups of employees
Core-Plus Plans
A core of essential bene ts and a menu-like selection of other bene t options
Flexible Spending Plans
A ow employees to use their tax- ee bene t do ars to purchase bene ts and pay service
premiums
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 Employee Recognition Programs

Intrinsic rewards: Stimulate Intrinsic Motivation

Personal attention given to employee
Approval and appreciation for a job we done
Growing in popularity and usage
Bene ts of Programs
Ful employees’ desire for recognition
Inexpensive to implement
Encourages repetition of desired behaviors
Drawbacks of Programs
Susceptible to manipulation by management
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