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Chapter 4, Nancy Langton and Stephen P.

Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-1
Copyright © 2007 Pearson Education Canada
Chapter 4
Motivating Self and Others
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-2
Copyright © 2007 Pearson Education Canada
Chapter Outline
• Defining Motivation
• Needs Theories of Motivation
• Process Theories of Motivation
• Responses to the Reward System
• Creating a Motivating Workplace: Rewards and Job
Design
• Evaluating the Use of Rewards in the Workplace
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-3
Copyright © 2007 Pearson Education Canada
Theories of Motivation
1. What is motivation?
2. How do needs motivate people?
3. Are there other ways to motivate people?
4. Do equity and fairness matter?
5. How can rewards and job design motivate
employees?
6. What kinds of mistakes are made in reward
systems?
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-4
Copyright © 2007 Pearson Education Canada
What Is Motivation?
• Motivation
– The intensity, direction, and persistence of effort
a person shows in reaching a goal:
• Intensity: How hard a person tries
• Direction: Where effort is channelled
• Persistence: How long effort is maintained
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-5
Copyright © 2007 Pearson Education Canada
Theory X and Theory Y
• Theory X
– Assumes that employees dislike work, will attempt to
avoid it, and must be coerced, controlled, or threatened
with punishment if they are to perform.
• Theory Y
– Assumes that employees like work, are creative, seek
responsibility, and can exercise self-direction and self-
control.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-6
Copyright © 2007 Pearson Education Canada
Motivators
• Intrinsic Motivators
– A person’s internal desire to do something, due
to such things as interest, challenge, and personal
satisfaction.
• Extrinsic Motivators
– Motivation that comes from outside the person
and includes such things as pay, bonuses, and
other tangible rewards.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-7
Copyright © 2007 Pearson Education Canada
Needs Theories of Motivation
• Basic idea
– Individuals have needs that, when unsatisfied,
will result in motivation
• Maslow’s Hierarchy of Needs Theory
• ERG Theory
• McClelland’s Theory of Needs
• Motivation-Hygiene Theory
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-8
Copyright © 2007 Pearson Education Canada
Maslow’s Hierarchy of Needs
• Physiological
– Includes hunger, thirst, shelter, sex, and other
bodily needs.
• Safety
– Includes security and protection from physical
and emotional harm.
• Social
– Includes affection, belongingness, acceptance,
and friendship.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-9
Copyright © 2007 Pearson Education Canada
Maslow’s Hierarchy of Needs
• Esteem
– Includes internal esteem factors such as self-
respect, autonomy, and achievement, and
external esteem factors such as status,
recognition, and attention.
• Self-actualization
– The drive to become what one is capable of
becoming; includes growth, achieving one’s
potential, and self-fulfillment.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-10
Copyright © 2007 Pearson Education Canada
Exhibit 4-1
Physiological
Safety
Social
Esteem
Self-
actualization
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-11
Copyright © 2007 Pearson Education Canada
Alderfer’s ERG Theory
• Existence
– Concerned with providing basic material
existence requirements.
• Relatedness
– Desire for maintaining important interpersonal
relationships.
• Growth
– Intrinsic desire for personal development.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-12
Copyright © 2007 Pearson Education Canada
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 interpersonal
relationships.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-13
Copyright © 2007 Pearson Education Canada
Herzberg’s Motivation-Hygiene
Theory
• Hygiene factors – the sources of dissatisfaction
– Extrinsic factors (context of work)
• Company policy and administration
• Unhappy relationship with employee’s supervisor
• Poor interpersonal relations with one’s peers
• Poor working conditions
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-14
Copyright © 2007 Pearson Education Canada
Herzberg’s Motivation-Hygiene
Theory
• Motivators – the sources of satisfaction
– Intrinsic factors (content of work)
• Achievement
• Recognition
• Challenging, varied, or interesting work
• Responsibility
• Advancement
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-15
Copyright © 2007 Pearson Education Canada
Comparison of Satisfiers and Dissatisfiers
Source: Reprinted by permission
of Harvard Business Review. An
exhibit from Frederick
Herzberg, “One More Time:
How Do You Motivate
Employees?” Harvard Business
Review 81, no. 1 (January 2003),
p. 90. Copyright © 1987 by the
President and Fellows of
Harvard College; all rights
reserved.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-16
Copyright © 2007 Pearson Education Canada
Exhibit 4-2 Contrasting Views of
Satisfaction and Dissatisfaction
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-17
Copyright © 2007 Pearson Education Canada
Criticisms of Motivation-Hygiene Theory
• The procedure that Herzberg used is limited by its
methodology.
• The reliability of Herzberg’s methodology is
questioned.
• Herzberg did not really produce a theory of motivation.
• No overall measure of satisfaction was used.
• The theory is inconsistent with previous research.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-18
Copyright © 2007 Pearson Education Canada
Exhibit 4-3 Relationship of Various
Needs Theories
Hygiene
Factors
Need for Achievement
Need for Power
Need for Affiliation
Self-Actualization
Esteem
Affiliation
Security
Physiological
Motivators
Relatedness
Existence
Growth
Maslow Alderfer Herzberg
McClelland
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-19
Copyright © 2007 Pearson Education Canada
Summary: Hierarchy of Needs
– Maslow: Argues that lower-order needs must be satisfied
before one progresses to higher-order needs.
– Herzberg: Hygiene factors must be met if person is not to be
dissatisfied. They will not lead to satisfaction, however.
Motivators lead to satisfaction.
– Alderfer: More than one need can be important at the same
time. If a higher-order need is not being met, the desire to
satisfy a lower-level need increases.
– McClelland: People vary in the types of needs they have. Their
motivation and how well they perform in a work situation are
related to whether they have a need for achievement, affiliation,
or power.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-20
Copyright © 2007 Pearson Education Canada
Summary: Impact of Theory
– Maslow: Enjoys wide recognition among practising managers. Most
managers are familiar with it.
– Herzberg: The popularity of giving workers greater responsibility for
planning and controlling their work can be attributed to his findings.
Shows that more than one need may operate at the same time.
– Alderfer: Seen as a more valid version of the needs hierarchy. Tells us
that achievers will be motivated by jobs that offer personal
responsibility, feedback, and moderate risks.
– McClelland: Tells us that high need achievers do not necessarily make
good managers, since high achievers are more interested in how they
do personally.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-21
Copyright © 2007 Pearson Education Canada
Summary: Support and Criticism of
Theory
– Maslow: Research does not generally validate the theory. In
particular, there is little support for the hierarchical nature of
needs. Criticized for how data were collected and interpreted.
– Herzberg: Not really a theory of motivation. Assumes a link
between satisfaction and productivity that was not measured or
demonstrated.
– Alderfer: Ignores situational variables.
– McClelland: Mixed empirical support, but theory is consistent
with our knowledge of individual differences among people.
Good empirical support, particularly on needs achievement.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-22
Copyright © 2007 Pearson Education Canada
Process Theories of Motivation
• Look at the actual process of motivation
– Expectancy theory
– Goal-setting theory
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-23
Copyright © 2007 Pearson Education Canada
Expectancy Theory
• The theory that individuals act depending on whether
their effort will lead to good performance, whether
good performance will be followed by a given
outcome, and whether that outcome is attractive to
them.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-24
Copyright © 2007 Pearson Education Canada
Expectancy Relationships
• The theory focuses on three relationships:
– Effort-Performance Relationship
• The perceived probability that exerting a given amount of
effort will lead to performance
– Performance-Reward Relationship
• The degree to which the individual believes that performing at
a particular level will lead to a desired outcome
– Rewards-Personal Goals Relationship
• The degree to which organizational rewards satisfy an
individual’s personal goals or needs and are attractive to the
individual
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-25
Copyright © 2007 Pearson Education Canada
Exhibit 4-5 How Does Expectancy
Theory Work?
Expectancy
Effort Performance Link
E=0
No matter how much effort
I put in, probably not possible
to memorize the text in 24 hours
Instrumentality
Performance Rewards Link
I=0
My professor does not look
like someone who has $1 million
Valence
Rewards Personal Goals Link
V=1
There are a lot of wonderful things
I could do with $1 million
My professor offers me $1 million if I memorize the textbook by tomorrow morning.
Conclusion: Though I value the reward, I will not be motivated to do this task.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-26
Copyright © 2007 Pearson Education Canada
Exhibit 4-6
Steps to Increasing Motivation, Using
Expectancy Theory
Improving Expectancy
Improve the ability of the
individual to perform
• Make sure employees have skills
for the task
• Provide training
• Assign reasonable tasks and goals
Improving Instrumentality Improving Valence
Increase the individual ’ s belief that
performance will lead to reward
• Observe and recognize performance
• Deliver rewards as promised
• Indicate to employees how previous
good performance led to greater
rewards
Make sure that the reward is
meaningful to the individual
• Ask employees what rewards they
value
• Give rewards that are valued
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-27
Copyright © 2007 Pearson Education Canada
Goal-Setting Theory
• The theory that specific and difficult goals lead
to higher performance.
– Goals tell an employee what needs to be done and how
much effort will need to be expended.
• Specific goals increase performance.
• Difficult goals, when accepted, result in higher performance
than do easy goals.
• Feedback leads to higher performance than does nonfeedback.
– Specific hard goals produce a higher level of output than
does the generalized goal of ―do your best.‖
• The specificity of the goal itself acts as an internal stimulus.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-28
Copyright © 2007 Pearson Education Canada
How Does Goal Setting Motivate?
• Goals:
– Direct attention
– Regulate effort
– Increase persistence
– Encourage the development of strategies and
action plans
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-29
Copyright © 2007 Pearson Education Canada
Goals Should Be SMART
• For goals to be effective, they should be
SMART:
– Specific
– Measurable
– Attainable
– Results-oriented
– Time-bound
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-30
Copyright © 2007 Pearson Education Canada
Exhibit 4-7 Locke’s Model of
Goal Setting
Regulating effort
Inc r easing persistence
Encouraging the development
of strategies and action plans
T ask
performance
Directing attention
Goals
motivate
by . . .
Source: Adapted from E. A. Locke and G. P. Latham, A Theory of Goal Setting and Task
Performance (Englewood Cliffs, NJ: Prentice Hall, 1980). Reprinted by permission of Edwin A.
Locke.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-31
Copyright © 2007 Pearson Education Canada
Contingency Factors in
Goal Setting
• Self-efficacy
– An individual’s belief that he or she is capable of
performing a task.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-32
Copyright © 2007 Pearson Education Canada
Responses to the
Reward System
• Equity Theory
• Fair Process and Treatment
• Cognitive Evaluation Theory
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-33
Copyright © 2007 Pearson Education Canada
Exhibit 4-8
Equity Theory
Person 1
Inequity, underrewarded
Equity
Inequity, overrewarded
Ratio of Output to Input
Person 2
Person 1
Person 2
Person 1
Person 2
Person 1’s Perception

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-34
Copyright © 2007 Pearson Education Canada
Equity Theory
• Main points:
– Individuals compare their job inputs and
outcomes with those of others and then respond
so as to eliminate any inequities.
– Equity theory recognizes that individuals are
concerned not only with the absolute amount of
rewards for their efforts, but also with the
relationship of this amount to what others
receive.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-35
Copyright © 2007 Pearson Education Canada
Responses to Inequity
• Change their inputs.
• Change their outcomes.
• Adjust perceptions of self.
• Adjust perceptions of others.
• Choose a different referent.
• Leave the field.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-36
Copyright © 2007 Pearson Education Canada
Fair Process and Treatment
• Historically, equity theory focused on
– Distributive justice.
• However, equity should also consider
– Procedural justice.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-37
Copyright © 2007 Pearson Education Canada
Fair Process and Treatment
• Distributive Justice
– Perceived fairness of the amount and allocation of
rewards among individuals.
• Procedural Justice
– Perceived fairness of the process used to determine the
distribution of rewards.
• Interactional Justice
– The quality of the interpersonal treatment received from a
manager.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-38
Copyright © 2007 Pearson Education Canada
Cognitive Evaluation Theory
• The introduction of extrinsic rewards for work
effort that was previously rewarded
intrinsically will tend to decrease the overall
level of a person’s motivation.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-39
Copyright © 2007 Pearson Education Canada
Motivators
• Intrinsic
– A person’s internal desire to do something, due
to such things as interest, challenge, and personal
satisfaction.
• Extrinsic
– Motivation that comes from outside the person,
such as pay, bonuses, and other tangible rewards.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-40
Copyright © 2007 Pearson Education Canada
Four Key Rewards to Increase
Intrinsic Motivation
1.Sense of choice
2.Sense of competence
3.Sense of meaningfulness
4.Sense of progress

Managers can act in ways that will build these
intrinsic rewards for their employees.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-41
Copyright © 2007 Pearson Education Canada
Exhibit 4-9 Building Blocks for
Intrinsic Rewards
• Delegated authority
• T rust in workers
• Security (no punishment) for honest mistakes
• A clear purpose
• Information
• A noncynical climate
• Clearly identified passions
• An exciting vision
• Relevant task purposes
• Whole tasks
• Knowledge
• Positive feedback
• Skill recognition
• Challenge
• High, non-comparative standards
• A collaborative climate
• Milestones
• Celebrations
• Access to customers
• Measurement of improvement
Leading for Choice Leading for Competence
Leading for Meaningfulness Leading for Progress
Source: Reprinted with permission of the publisher. From Intrinsic Motivation at Work: Building Energy and
Commitment. Copyright © K. Thomas. Berrett-Koehler Publishers Inc., San Francisco, CA. All rights reserved.
www.bkconnection.com.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-42
Copyright © 2007 Pearson Education Canada
Employee Recognition
• Employee recognition programs use multiple
sources and recognize both individual and
group accomplishments.
• In contrast to most other motivators,
recognizing an employee’s superior
performance often costs little or no money.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-43
Copyright © 2007 Pearson Education Canada
Variable-Pay Programs
• A portion of an employee’s pay is based on some
individual and/or organizational measure of
performance.
– Individual-based
• Piece-rate wages, bonuses
– Group-based
• Gainsharing
– Organizational-based
• Profit sharing
• Employee stock ownership plans (ESOPs)
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-44
Copyright © 2007 Pearson Education Canada
Variable Pay Programs: Individual-
Based Incentives
• Piece-rate pay plans
– Employees are paid a fixed sum for each unit of
production completed.
• Bonuses
– One-time rewards for defined work rather than
ongoing entitlements.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-45
Copyright © 2007 Pearson Education Canada
Variable Pay Programs:
Group-Based Incentives
• Gainsharing
– An incentive plan where improvements in group
productivity determine the total amount of money
that is allocated.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-46
Copyright © 2007 Pearson Education Canada
Variable Pay Programs:
Organizational-Based Incentives
• Profit-Sharing Plans
– Organization-wide programs that distribute
compensation based on some established formula
designed around a company’s profitability.
• Employee Stock Ownership Plans (ESOPs)
– Company-established benefit plans in which
employees acquire stock as part of their benefits.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-47
Copyright © 2007 Pearson Education Canada
Research Findings
• Linking variable-pay programs and expectancy
theory:
– Variable-pay programs seem to be consistent
with expectancy theory predictions.
– Employees are motivated when there is a
perceived strong relationship between
performance and rewards.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-48
Copyright © 2007 Pearson Education Canada
Motivating Beyond Productivity
• Commissions beyond sales
– Customer satisfaction and/or sales team outcomes, such as
meeting revenue or profit targets.
• Leadership effectiveness
– Employee satisfaction, or how the manager handles his or
her employees.
• New goals
– All employees who contribute to specific organizational
goals, such as customer satisfaction, cycle time, or quality
measures.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-49
Copyright © 2007 Pearson Education Canada
Rewards for Other Types of
Performance
• Knowledge workers in teams
– Performance of knowledge workers and/or professional
employees who work on teams.
• Competency and/or skills
– Abstract knowledge or competencies—for example,
knowledge of technology, the international business
context, customer service, or social skills.
• Skill-based
– Pay is based on how many skills an employee has, or how
many jobs he or she can do.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-50
Copyright © 2007 Pearson Education Canada
Exhibit 4-11 Comparing Various Pay
Programs
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-51
Copyright © 2007 Pearson Education Canada
Designing Motivating Jobs
• Job Characteristic Model (JCM) is a model that identifies
five core job dimensions and their relationship to personal
and work outcomes.
• Job Enrichment
– The vertical expansion of jobs.
• Employee does a complete activity.
– Expands the employee’s freedom and independence,
increases responsibility, and provides feedback.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-52
Copyright © 2007 Pearson Education Canada
JCM – Core Job Dimensions
• Skill variety
• Task identity
• Task significance
• Autonomy
• Feedback
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-53
Copyright © 2007 Pearson Education Canada
JCM – Critical Psychological States
• Experienced meaningfulness
• Experienced responsibility for outcomes
• Knowledge of the actual results
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-54
Copyright © 2007 Pearson Education Canada
Exhibit 4-12 – Examples of High and
Low Job Characteristics
Skill Variety
High variety – The owner-operator of a garage who does electrical repair, rebuilds engines, does body work, and
interacts with customers
Low variety – A body shop worker who sprays paint eight hours a day

Task Identity
High identity – A cabinet maker who designs a piece of furniture, selects the wood, builds the object, and finishes
it to perfection
Low identity – A worker in a furniture factory who operates a lathe solely to make table legs

Task Significance
High significance – Nursing the sick in a hospital intensive care unit
Low significance – Sweeping hospital floors

Autonomy
High autonomy – A telephone installer who schedules his or her own work for the day, makes visits without
supervision, and decides on the most effective techniques for a particular installation
Low autonomy – A telephone operator who must handle calls as they come according to a routine, highly
specified procedure

Feedback
High feedback – An electronics factory worker who assembles a radio and then tests it to determine if it operates
properly
Low feedback – An electronics factory worker who assembles a radio and then routes it to a quality control
inspector who tests it for proper operation and makes needed adjustments
Source: G. Johns, Organizational Behavior: Understanding and Managing Life at Work, 4
th
ed. Copyright © 1997. Adapted by permission of Pearson Education,
Inc., Upper Saddle River, NJ.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-55
Copyright © 2007 Pearson Education Canada
Exhibit 4-13 The Job
Characteristics Model
Core job
dimensions
Personal and
work outcomes
Skill variety
Task identity
Task significance
Experienced
meaningfulness
of the work
High internal
work motivation
Autonomy
Experienced
responsibility
for outcomes
of the work
High-quality
work performance
Feedback
Knowledge of the
actual results of
the work activities
High satisfaction
with the work
Low absenteeism
and turnover
Employee growth-
need strength
Critical
psychological states
Source: J. R. Hackman, G. R.
Oldham, Work Design (excerpted
from pages 78-80). Copyright ©
1980 by Addison-Wesley
Publishing Co. Reprinted by
permission of Addison-Wesley
Longman.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-56
Copyright © 2007 Pearson Education Canada
Beware the Signals That Are Sent By
Rewards
• Often reward systems do not reflect organizational
goals:
– Individuals are stuck in old patterns of rewards and
recognition.
• Stick to rewarding things that can be easily measured.
– Organizations don’t look at the big picture.
• Subunits compete with each other.
– Management and shareholders focus on short-term results.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-57
Copyright © 2007 Pearson Education Canada
We hope for:
• Teamwork and collaboration
• Innovative thinking and risk-taking
• Development of people skills
• Employee involvement and empowerment
• High achievement
• Long-term growth; environmental
responsibility
• Commitment to total quality
• Candor; surfacing bad news early
But we reward:
• The best team members
• Proven methods and not making mistakes
• Technical achievements and accomplishments
• Tight control over operations and resources
• Another year’s effort
• Quarterly earnings
• Shipment on schedule, even with defects
• Reporting good news, whether it’s true or not;
agreeing with the manager, whether or not
(s)he’s right
Exhibit 4-14
Management Reward Follies
Source: Constructed from S. Kerr, “On the Folly of Rewarding A, While Hoping for B,” Academy of Management Executive 9, no. 1 (1995), pp. 7-14; and “More on the Folly,”
Academy of Management Executive 9, no. 1 (1995), pp. 15-16. Reprinted by permission.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-58
Copyright © 2007 Pearson Education Canada
Caveat Emptor: Apply Motivation
Theories Wisely
• Motivation Theories Are Culture-Bound
– Canada and US rely on extrinsic rewards more
than other countries.
– Japan and Germany rarely use individual
incentives.
• Japan emphasizes group rewards.
– China is more likely to give bonuses to everyone.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-59
Copyright © 2007 Pearson Education Canada
Exhibit 4-15 Snapshots of Cultural
Differences in Motivation
Japan: Sales representatives preferred being members of a successful
team with shared goals and values, rather than financial r

ewards.
Russia: Cotton mill employees given either valued extrinsic rewards

( North American T -shirts with logos, childr en ’ s sweatpants, tapes of
North American music, etc.) or praise and rewards were more productive.
However , rewards did not help for those who worked on
Satur days.
China: Bonuses often given to everyone, r egar dless of individual
pr oductivity . Many employees expect jobs for life, rather than jobs based
on performance.
M exico : Employees pr efer i mmediate feedback on their work. Therefore

daily r ewar ds for exceeding quotas ar e pr efer re d.
Canada and the United States: Managers re ly mor e h eavily on extrinsic
motivators.
Japan and Germany: Firms rarely give rewards based on individual
performance.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-60
Copyright © 2007 Pearson Education Canada
Can We Just Eliminate Rewards?
• Alfie Kohn suggests that organizations should focus
less on rewards, more on creating motivating
environments:
– Abolish Incentives.
– Re-evaluate Evaluation.
– Create Conditions for Authentic Motivation.
– Encourage Collaboration.
– Enhance Content.
– Provide Choice.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-61
Copyright © 2007 Pearson Education Canada
Putting It All Together
• What we know about motivating employees in organizations:
– Recognize individual differences.
– Employees have different needs.
– Don’t treat them all alike.
– Spend the time necessary to understand what’s important to each
employee.
– Use goals and feedback.
– Allow employees to participate in decisions that affect them.
– Link rewards to performance.
– Check the system for equity.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-62
Copyright © 2007 Pearson Education Canada
Summary and Implications
1. What is Motivation?
– Motivation is the process that accounts for an
individual’s intensity, direction, and persistence
of effort toward reaching the goal.
2. How do needs motivate people?
– All needs theories of motivation propose a
similar idea: individuals have needs that, when
unsatisfied, will result in motivation.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-63
Copyright © 2007 Pearson Education Canada
Summary and Implications
3. Are there other ways to motivate people?
– Process theories focus on the broader picture of how
someone can set about motivating another individual.
Process theories include expectancy theory and goal-
setting theory (and its application, management by
objectives).
4. Do equity and fairness matter?
– Individuals look for fairness in the reward system.
Rewards should be perceived by employees as related to
the inputs they bring to the job.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-64
Copyright © 2007 Pearson Education Canada
Summary and Implications
5. How can rewards and job design motivate employees?
– Recognition helps employees feel that they matter.
Employers can use variable-pay programs to reward
performance. Employers can use job design to motivate
employees. Jobs that have variety, autonomy, feedback, and
similar complex task characteristics tend to be more
motivating for employees.
6. What kinds of mistakes are made in reward systems?
– Often reward systems do not reward the performance that is
expected. Also, reward systems sometimes do not recognize
that rewards are culture-bound.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-65
Copyright © 2007 Pearson Education Canada
OB at Work
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-66
Copyright © 2007 Pearson Education Canada
For Review
1. What are the implications of Theories X and
Y for motivation practices?
2. Identify the variables in expectancy theory.
3. Describe the four ways in which goal
setting motivates.
4. Explain cognitive evaluation theory. How
applicable is it to management practice?
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-67
Copyright © 2007 Pearson Education Canada
For Review
5. What are the pluses and minuses of variable-pay
programs from an employee’s viewpoint? From
management’s viewpoint?
6. What is an ESOP? How might it positively influence
employee motivation?
7. Describe the five core dimensions in the JCM.
8. Describe three jobs that score high on the JCM.
Describe three jobs that score low.
9. What can firms do to create more motivating
environments for their employees?
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-68
Copyright © 2007 Pearson Education Canada
For Critical Thinking
1. Identify three activities you really enjoy (for example,
playing tennis, reading a novel, going shopping). Next,
identify three activities you really dislike (for example,
visiting the dentist, cleaning the house, following a low-fat
diet). Using expectancy theory, analyze each of your answers
to assess why some activities stimulate your effort while
others don’t.
2. Identify five different bases by which organizations can
compensate employees. Based on your knowledge and
experience, is performance the basis most used in practice?
Discuss.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-69
Copyright © 2007 Pearson Education Canada
For Critical Thinking
3. ―Employee recognition may be motivational for the
moment, but it doesn’t have any staying power. Why?
Because employees can’t take recognition to Roots or
The Bay!‖ Do you agree or disagree? Discuss.
4. ―Performance can’t be measured, so any effort to link
pay with performance is a fantasy. Differences in
performance are often caused by the system, which
means the organization ends up rewarding the
circumstances. It’s the same thing as rewarding the
weather forecaster for a pleasant day.‖ Do you agree or
disagree with this statement? Support your position.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-70
Copyright © 2007 Pearson Education Canada
For Critical Thinking
5. Your textbook argues for recognizing individual differences.
It also suggests paying attention to members of diverse
groups. Does this view contradict the principles of equity
theory? Discuss.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-71
Copyright © 2007 Pearson Education Canada
Breakout Group Exercises
• Form small groups to discuss the following topics:
1. One of the members of your team continually arrives late for meetings
and does not turn drafts of assignments in on time. Choose one of the
available theories and indicate how the theory explains the member’s
current behaviour and how the theory could be used to motivate the
group member to perform more responsibly.
2. You are unhappy with the performance of one of your instructors and
would like to encourage the instructor to present more lively classes.
Choose one of the available theories and indicate how the theory
explains the instructor’s current behaviour. How could you as a
student use the theory to motivate the instructor to present more lively
classes?
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-72
Copyright © 2007 Pearson Education Canada
Breakout Group Exercises
3. Harvard University recently changed its grading policy to
recommend to instructors that the average course mark should be a
B. This was the result of a study showing that more than 50
percent of students were receiving an A or A- for coursework.
Harvard students are often referred to as ―the best and the
brightest,‖ and they pay $27 000 (US) for their education, so they
expect high grades. Discuss the impact of this change in policy on
the motivation of Harvard students to study harder.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-73
Copyright © 2007 Pearson Education Canada
Exhibit 4-16 2005 Compensation of
Canada’s “Most Overpaid” CEOs
CEO(s) Was Paid (3-Yr
Avg.)
Should Have Been
Paid
Amount Overpaid
1. Ian Telfer/Robert McEwen
Goldcorp
Vancouver, BC
$32 823 000 $1 313 000 $31 510 000
2. E. Melnyk
Biovail
Mississauga, Ontario
$23 392 000 $1 404 000 $21 988 000
3. Richard Smith/David Stein
CoolBrands
Markham, Ontario
$9 647 000 $675 000 $8 972 000
4. Jeffrey Orr/Robert Gratton
Power Financial Corporation
Montreal, Quebec
$76 139 000 $9 898 000 $66 241 000
5. Gerald Schwartz
Onex
Toronto, Ontario
$26 163 000 $4 709 000 $21 454 000
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-74
Copyright © 2007 Pearson Education Canada
Supplemental Material
Slides for activities I do in my own
classroom
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-75
Copyright © 2007 Pearson Education Canada
Exercise on Motivation Theories
• Jesse has been underperforming at work, coming in
late, and causing some problems with the other
workers. Previously, Jesse had been one of your star
employees. Using the theory assigned to your group,
explain what steps you might take to motivate Jesse to
perform better.
– Describe the plan.
– Indicate how the plan relates to the theory.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-76
Copyright © 2007 Pearson Education Canada
Theories to Apply
• Herzberg Motivation-Hygiene (Two-Factor)
Theory
• Expectancy
• Goal-Setting Theory
• Equity
• Cognitive Evaluation Theory