MIDTERM – CHAPTER 4
MOTIVATION: MOTIVATING PEOPLE AT WORK
Defining Motivation
Motivation – the process that accounts for an individual’s intensity,
direction, and persistence of efforts toward attaining a goal.
Key Elements:
Intensity – how hard a person tries
Direction – toward beneficial goal
Persistence – how long a person tries
IMPORTANCE IN MANAGEMENT
“MOTIVATING PEOPLE TOWARDS EXCELLENT PERFORMANCE!
IT IS THE PRIMARY TASK OF MANAGERS.”
Similarly, motivation is important to a business as:
The more motivated the employees are, the more empowered the team
is.
The more is the team work and individual employee contribution, more
profitable and successful is the business.
During period of amendments, there will be more adaptability and
creativity.
Motivation will lead to an optimistic and challenging attitude at work
place.
REWARDS AND INCENTIVE
Rewards and incentives in the workplace have benefits for both
employees and employers. When recognized for stellar performance and
productivity, employees have increased morale, job satisfaction and
involvement in the organizational functions. As a result, employers
experience greater efficiency and an increase in sales and productivity.
Through workplace rewards and incentives, employers and workers
enjoy a positive and productive environment.
INTRINSIC REWARD
Intrinsic rewards are the non-physical rewards.
They cannot be seen or touched but are emotionally connected with the
employees. In the feeling of contentment one finds in completion of any
task.
Intrinsic reward is directly related to job performance as a successful
task automatically produces it. Higher the success rate, higher will be the
rate of intrinsic rewards one receives.
Different people have different perception and therefore, there are
various forms of intrinsic rewards, some of which are:
Examples:
Sense of achievement
Words of praise from the seniors
Recognition
Taking pride from the job
Work freedom or autonomy
Extrinsic rewards are the physical ones that come from an external
source (employers) only. A properly designed extrinsic reward can also
be emotionally attached with the employees as employees value such
rewards.
An extrinsic reward also directly related to job performance of the
employees but it is necessary that employees receive reward every time
they accomplish the task. It depends upon the policy of the company.
There are various ways a company can choose to reward its employees.
Some examples of extrinsic rewards are:
Examples:
o Pay o Improved working
o Bonus or Commission condition
o Fringe benefits o Promotion
o Profit
CONTEMPORARY MOTIVATIONAL THEORY
NEED THEORY
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 Power – the need to make others behave in a way that
they would not have behaved otherwise
- Need for affiliation – the desire for friendly and close personal
relationships.
MASLOW HIERARCHY OF NEEDS
There is a hierarchy of five needs-physiological, safety, social, esteem,
and self actualization; as each need is substantially satisfied, the net
need becomes dominant.
Self-actualization – The drive to become what one is capable of
becoming.
A SATISFIED NEED IS NO LONGER A MOTIVATOR, AS ONE
NEED IS SATISFIED, ANOTHER NEED EMERGES
EQUITY THEORY
Individuals compare their job inputs and outcomes with those of
others and then respond to eliminate any inequities.
Choices for dealing with inequity:
o Change inputs (slack off)
o Change outcomes (increase output)
o Distort/change perceptions of others
o Choose a different referent person
o Leave the field (quit the jobs)
Propositions relating to inequitable pay:
o Over rewarded hourly employees produce more than
equitably rewarded employees.
o Over rewarded piece-work employees produce lower quality
work.
o Under rewarded employees produce larger quantities of
lower-quality piece work than equitably rewarded
employees.
Distributive Justice
o Perceived fairness of the amount and allocation of rewards
among individuals.
o This refers to the perceived fairness of outcomes or results
that people receive.
It answers the question: “Did I get what I deserve?”
It focuses on things like:
Salary and bonuses
Promotions
Workload distribution
Recognition
Example:
Two employees do the same job, but one receives a higher raise. If
the raise is based on performance and clearly justified, people may
see it as fair (high distributive justice). If not, they may feel unfairly
treated.
Procedural Justice
o The perceived fairness of the process to determine the
distribution of rewards.
o This refers to the fairness of the processes used to make
decisions.
It answers the question: “Was the decision-making
process fair and transparent?”
It looks at:
Consistency of rules
Opportunity to give input
Bias-free procedures
Transparency and explanation of decisions
Example:
If a promotion decision is made through a clear, consistent process
where everyone had a chance to apply and be heard, procedural
justice is high—even if someone didn't get the job.
EXPECTANCY THEORY
Employee’s motivation is an outcome of how much an individual
wants a reward (valence), the assessment that the likelihood that the
effort will lead to expected performance (expectancy) and the belief
that the performance will lead to reward ( instrumentality)
In psychology and motivation theories, especially in Victor Vroom’s
Expectancy Theory, valence refers to the value or importance an
individual places on a reward or outcome.
Valence is how much you want or care about the reward.
Examples:
o If a student really wants to get a scholarship, the valence
is high.
o If an employee doesn't care about a bonus, the valence is
low.
Types of Valence:
Positive Valence: You want the outcome (e.g., promotion, praise,
bonus)
Zero Valence: You don’t care either way
Negative Valence: You don’t want the outcome (e.g., more work
with no pay)
In Motivation (Expectancy Theory):
Motivation = Expectancy × Instrumentality × Valence
So, even if someone believes they can succeed (expectancy) and
that success will lead to a reward (instrumentality), if they don’t
value the reward (valence), they won’t be motivated.
VALENCE
Is the significance associated by an individual about the expected
outcome.
It is an expected and not the actual satisfaction that an employee
expects to receive after achieving the goals.
EXPECTANCY (performance expectancy)
Is the faith that better efforts will result in better performance
Expectancy is influenced by factors such as possession of
appropriate skills for performing the job. Availability of right
resources, availability of crucial information and getting the required
support for completing the job.
INSTRUMENTALITY (reward expectancy)
Is the faith that if you perform well, then a valid outcome will be the
result.
Instrumentality is affected by factors such as believe in people who
decide who receives what outcomes are, the simplicity of the
process deciding who gets what outcomes, and clarity of relationship
between performance and outcomes.
EXPECTANCY THEORY RELATIONSHIPS
REWARDS PERSONAL GOALS RELATIONSHIPS
The degree to which organizational rewards satisfy an individual's
goals or needs and the attractiveness of potential rewards for the
individual.
EFFORT-PERFORMANCE RELATIONSHIPS
The probability that exerting a given amount of effort will lead to
performance
PERFORMANCE-REWARD RELATIONSHIP
The belief that performing at a particular level will lead to the
attainment of a desired outcome
ADVANTAGE OF EXPECTANCY THEORY
It is based on self-interest individual who want to achieve maximum
satisfaction and who wants to minimize dissatisfaction.
This theory stresses upon the expectations and perception
It emphasizes on rewards or pay-offs
It focuses on physiological extravagance where final objective of
individual is to attain maximum pleasure and least pain.
LIMITATIONS OF EXPECTANCY THEORY
The expectancy theory seems to be idealistic because quite a few
individuals perceive high degree correlation between performance
and rewards.
The application of this theory is limited as reward is not directly
correlated with performance in many organizations. It is related to
other parameters also such as position, effort, responsibility,
education, etc.
GOAL SETTING THEORY
The famous goal setting theory was put forward by Dr. Edwin Locke
in the late 1960's. Linking goals to performance.
According to this theory the individuals are motivated when they
behave in ways that move them to certain goals they can expect to
attain.
Goals should be acceptable by the individual as long as they are
accepted, demanding goals lead to better performance than easy
goals.
GOAL SETTING
Is the process of developing, negotiating, and formulating the targets
or objectives that a person is responsible for accomplishing.
GOALS SHOULD BE SPECIFIC, MEASURABLE AND TIME-
BOUNDED
Goals such as "Become a top sales" or "Sell as many products as I
can" are to vague and therefore have no effect on motivation.
Instead, you should set more specific goals. Specific means
quantitative.
"Sell 500 products per month” This is a specific target, you will use
specific result as a source of motivation and you will perform better.
GOALS SHOULD BE CHALLENGING
Make each goal a challenge to you. If the goal is easily achievable,
without difficulty, it is not very motivational.
Hard goals are more motivating than easy goals, because when
your are challenging a goal, you will try your best and generate
enough enthusiasm to get it done.
GOALS SHOULD BE ACHIEVABLE
If the goals are not realistic for you to achieve, you may lose
confidence in the end. So, when you set a goal, make sure you can
achieve it.
The goal should be challenging and difficult, and you believe that
you can achieve it too.
MANAGEMENT BY OBJECTIVES (MBO)
Is an approach whereby individuals in an organization pursue
objectives which are mutually set and agreed upon by them and
their respective managers in a determined time period.
Performance reviews are made to monitor the progress by which
objectives are achieved. Rewards are also given accordingly.
JOB DESIGN
The process through which managers plan and specify job tasks and the
work arrangements that allow them to be accomplished.
JOB DESIGN GOALS
To meet the organizational requirement such as higher productivity,
operational efficiency, quality of product/service.
To satisfy the needs of the individual employees like interest, challenges,
achievement or accomplishment.
Integrate the needs of the individual with the organizational requirement.
ENGINEERING APPROACH
The work of every workman is fully planned out by the management at least
one day in advance. Each employee receives in most cases written
instructions, describing in detail the task which they must accomplish.
Problem with this approach: Repetition mechanical pacing - no end product
- little social interaction - no input.
HUMAN APPROACH
The human relations approach recognized the need to design jobs which
are interesting and rewarding.
Herzberg's research popularized the notion of enhancing need satisfaction
through what is called job enrichment
Motivators like achievement, recognition, work itself, responsibility,
advancement and growth.
JOB DESCRIPTION APPROACH
Theory by Hackman and Oldham states that employee will work hard when
they are rewarded for the work they do and when the work gives them
satisfaction. Hence, integration of motivation, satisfaction, and performance
with job design is important.
CORE JOB DESCRIPTION
SKILL VARIETY – the degree which job requires a variety of activities that
involve different skills and talents.
TASK IDENTITY – the degree to which the job requires completion of a
"whole" and an identifiable piece of work. Job has beginning and an end
with a tangible outcome.
TASK SIGNIFICANCE – the degree to which job affects the lives or work of
other people, both in the immediate organization and in the external
environment.
AUTONOMY – the degree to which the job allows the individual substantial
freedom, independence, and discretion to schedule the work and determine
the procedures for carrying it out.
FEEDBACK – the degree to which job activities give the individual direct
and clear information about the effectiveness of his or her performance.
