Because learning changes everything.

Chapter 6

Motivation

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 An Integrative Model of Organizational
Behavior

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 Class Agenda
Motivation
Why Are Some Employees More Motivated than Others?
• Expectancy theory.
• Goal setting theory.
• Equity theory.
• Psychological Empowerment
How Important Is Motivation?
Application: Compensation Systems

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 Motivation
A set of energetic forces that originates both within and
outside an employee, 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?
• Level of Engagement.

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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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 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; 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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 Meaning of Money 2

Why does pay have such a high value?

• Achievement.
• Respect.
• Freedom.

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 Meaning of Money

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 Expectancy Theory 1

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

Effort → Performance
The belief that a high level of effort will lead to the successful
performance of a task.
Expectancy can be shaped by:
• Supportive Leadership
• Access to Resources
• Self-Efficacy

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 Figure 6-3 Sources of 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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 Instrumentality
Performance → Outcomes
The belief that successful performance will result in certain
outcomes.
Can be hindered by:
• Inadequate budget to provide outcomes, even when
performance is high.
• Poor methods of measuring performance.
• Use of policies that reward things other than performance,
such as attendance or seniority.
• Time delays in rewarding good performance.

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 Valence 1

Anticipated value of outcomes.

Positive.
• Prefer having the outcome (salary increases, bonuses).
• Outcomes that satisfy needs are more positively valanced.

Negative.
• Prefer not having the outcome (disciplinary action,
termination).

Zero.
• No interest in the outcome either way (bored with
outcome).

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 Needs
Maslow’s Hierarchy of Needs-Prepotency
• Physiological, Safety & Security, Belongingness, Esteem,
Self-Actualization
Alderfer’s ERG theory- Frustration Regression
• Existence, Relatedness, Growth
McClelland’s Acquired Needs Theory
• Achievement, Power, Affiliation

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 Expectancy Theory 3

Motivational Force = ( E → P )   ( P → 0 )  V 

Key aspect: multiplicative effects

• The Σ symbol in the equation signifies that
instrumentalities and valences are judged with various
outcomes in mind and motivation increases as successful
performance is linked to more and more attractive
outcomes.
• 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.
Need SMART goals:
• Specific
• Measurable
• Achievable
• Results-Based
• Time-Sensitive

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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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 Table 6-4 Strategies for Fostering Goal
Commitment
STRATEGY DESCRIPTION
Rewards Tie goal achievement to the receipt of monetary or
nonmonetary rewards.
Publicity Publicize the goal to significant others and coworkers to
create some social pressure to attain it.
Support Provide supportive supervision to aid employees if they
struggle to attain the goal.
Participation Collaborate on setting the specific proficiency level and due
date for a goal so that the employee feels a sense of
ownership over the goal.
Resources Provide the resources needed to attain the goal and
remove any constraints that could hold back task efforts.

Sources: Adapted from J.R. Hollenbeck and H.J. Klein, “Goal Commitment and the Goal-Setting Process: Problems, Prospects, and Proposals for
Future Research,” Journal of Applied Psychology 72 (1987), pp. 212–20; H.J. Klein, M.J. Wesson, J.R. Hollenbeck, and B.J. Alge, “Goal
Commitment and the Goal-Setting Process: Conceptual Clarification and Empirical Synthesis,” Journal of Applied Psychology 84 (1999), pp. 885–
96; E.A. Locke, G.P. Latham, and M. Erez, “The Determinants of Goal Commitment,” Academy of Management Review 13 (1988), pp. 23–29; G.P.
Latham, “The Motivational Benefits of Goal-Setting,” Academy of Management Executive 18 (2004), pp. 126–29.

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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

Are these really equal?

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© McGraw Hill, LLC 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 23
 Comparison Others

Job Equity
Company Equity
Occupational Equity
Educational Equity
Age Equity

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 Responses to Inequity

Alter outcomes
Alter inputs
Alter comparison other’s inputs
Change the comparison other
Rationalization
Leave the situation

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 Equity Sensitivity

Sensitives
Entitleds
Benevolents

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 Figure 6-6 Equity Theory Comparisons 2

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

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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 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 8: Learning and Decision Making

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