Leadership and Change Management

Date: 18/2/18

BITS Pilani Dr. Swati Alok

Pilani Campus

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 BITS Pilani
Hyderabad Campus

Chapter- 8: Motivation and empowerment

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Learning outline

• What is motivation
• Content theories
• Process theories
• Reinforcement theory
• Engagement

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 An Overview of Three Major
Classifications
of Motivation Theories
Classification of Motivation Theories Specific Motivation Theories

Content motivation: • Hierarchy of needs theory

Focus on explaining and predicting behavior based • Two-factor theory
on employee need motivation • Acquired needs theory

Process motivation: • Equity theory

Focus on understanding how employees choose • Expectancy theory
behaviors to fulfill their needs • Goal-setting theory

Reinforcement theory: Types of Reinforcement

Proposes that behavior can be explained, • Positive
predicted, and controlled through the • Avoidance
consequences for behavior • Extinction
• Punishment

3–4
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Motivation

Forces either internal or external to a person that arouse enthusiasm and

persistence to pursue a certain course of action
Is the result of an interaction between the person and a situation; it is not a
personal trait.
– Is the process by which a person’s efforts are energized, directed, and
sustained towards attaining a goal.
• Energy: a measure of intensity or drive.
• Direction: toward organizational goals
• Persistence: exerting effort to achieve goals.

Motivation plays a role in employee productivity

Motivational theory can be used to:
– Satisfy followers’ needs
– Encourage better work performance

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Exhibit 8.1 - A Simple Model of Motivation

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Types of Rewards

Intrinsic rewards

• Internal satisfactions a person receives in the

process of performing a particular action
• Appeal to the higher needs of individuals

Extrinsic rewards

• Given by another person, typically a supervisor

• Pay raise and promotions
• Appeal to the lower needs of individuals

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Exhibit 8.2 - Needs of People and Motivation
Methods

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Exhibit 8.3 - Four Categories of Motives

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 Content Motivation Theories
(cont’d)

Content
ContentMotivation
Motivation
Theories
Theories

Hierarchy
Hierarchy Acquired
Acquired
Two-Factor
Two-Factor
of
ofNeeds
Needs Needs
Needs

3–10
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Needs-Based Theory of Motivation

Hierarchy of needs theory

• Maslow’s theory proposes that humans are motivated by multiple
needs and those needs exist in a hierarchical order

Two-factor theory
• Hygiene factors: Involves the presence or absence of job dissatisfiers,
such as working conditions, pay, company policies, and interpersonal
relationships
• Motivators: Involves job satisfaction and meeting higher-level needs
such as achievement, recognition, and opportunity for growth

Acquired needs theory

• McClelland’s theory proposes that certain types of needs are acquired
during an individual’s lifetime
• Need for achievement, affiliation, and power

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 Maslow’s Hierarchy of Needs
(cont’d)
Classification of Needs

Physiological: Safety: Belongingness (Social):

• Air • Safety • Love
• Food • Security • Friendship
• Shelter • Acceptance
• Sex • Affection
• Relief from or avoidance
of pain

Esteem needs: Self-Actualization:

• Ego • Develop to one’s full potential
• Status • Growth
• Self-respect • Achievement
• Recognition • Advancement
• Self-confidence
• Prestige

3–12
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Exhibit How Organizations Motivate With Hierarchy of Needs Theory

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Exhibit 8.5 - Herzberg’s Two-Factor Theory

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Contrasting Views of Satisfaction-
Dissatisfaction

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Exhibit 15–2 Herzberg’s Motivation-Hygiene
Theory

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Motivation and Needs

Three-Needs Theory (McClelland)

– There are three major acquired needs that are major motives in work.
• Need for achievement (nAch)
– The drive to excel and succeed
• Need for power (nPow)
– The need to influence the behavior of others
• Need of affiliation (nAff)
– The desire for interpersonal relationships

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Exhibit 15–4 Examples of Pictures Used for Assessing
Levels of nAch, nAff, and nPow

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 Motivating Employees with
Acquired Needs Theory
• Employees with a high need for achievement
(n Ach):
– Give them nonroutine work
– Provide challenging tasks with clear,
attainable objectives
– Give them fast and frequent performance
feedback
– Give them increased responsibility for doing
new things
– Keep out of their way

3–19
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 Motivating Employees with
Acquired Needs Theory (cont’d)
• Employees with a high need for power (n
Pow):
– Let them plan and control own jobs
– Include them in decision making
– Let them work alone rather than on
teams
– Assign them to a whole task rather than
part of a task

3–20
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 Motivating Employees with
Acquired Needs Theory (cont’d)
• Employees with a high need for
affiliation (n Aff):
– Have them work on teams
– Give lots of praise and recognition
– Have them train and orient new
employees
– Let them serve as mentors

3–21
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Exhibit
3.9 A Comparison of Content Motivation Theories

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Other Motivation Theories

Reinforcement theory
• Looks at the relationship between behavior and its consequences
• Behavior modification: Set of techniques by which reinforcement theory is used to
modify behavior

Expectancy theory
• Motivation depends on individuals’ mental expectations about their ability
to perform tasks and receive desired rewards 

Equity theory
• People are motivated to seek social equity in the rewards they receive for
performance
• State of equity - Ratio of one person’s outcomes to inputs equals the ratio of others’
in the work group
• Inequity - Input/outcome ratios are out of balance

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 Motivation and Goals
• Goal-Setting Theory
– Proposes that setting goals that are accepted,
specific, and challenging yet achievable will result in
higher performance than having no or easy goals.
– Is culture bound to the U.S. and Canada.
• Benefits of Participation in Goal-Setting
– Increases the acceptance of goals.
– Fosters commitment to difficult, public goals.
– Provides for self-feedback (internal locus of control)
that guides behavior and motivates performance
(self-efficacy).
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Exhibit 15–5 Goal-Setting Theory

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Motivation and Behavior

Reinforcement Theory
– Assumes that a desired behavior is a function of its consequences, is
externally caused, and if reinforced, is likely to be repeated.
• Positive reinforcement is preferred for its long-term effects on
performance.
• Ignoring undesired behavior is better than punishment which may
create additional dysfunctional behaviors.

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Exhibit 8.6 - Shaping Behavior with
Reinforcement

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Exhibit Types of Reinforcement
3.11

.
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3–28
 Types of Reinforcement
• Positive reinforcement
– Encourages continued behavior via
attractive consequences (rewards)
– May be praise or a bonus, etc.
• Avoidance (negative) reinforcement
– Encourages desired behavior with negative
consequences for undesired behavior
– Rules are intended to encourage employees
to avoid certain behaviors

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 Types of Reinforcement
(cont’d)
• Extinction
– Used with punishment to reduce or
eliminate undesirable behavior
– Reinforcement is withheld when
undesirable behavior is performed
– If leaders do not reward good performance,
the result may be the extinction of that
good performance

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 Types of Reinforcement
(cont’d)
• Punishment
– Provides undesirable consequences for
undesirable behavior
• Reprimands, fines, suspensions, demotion, firing,
etc.
– May reduce a specific undesirable behavior
but cause others to appear
– Is the most controversial method of
motivation
– Is also the least effective method of motivation

.
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Exhibit 8.7 - Key Elements of Expectancy
Theory

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Exhibit 15–9 Simplified Expectancy Model

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Expectancy Theory

Expectancy Relationships
– Expectancy (effort-performance linkage)
• The perceived probability that an individual’s effort will result in a
certain level of performance.
– Instrumentality
• The perception that a particular level of performance will result in
the attaining a desired outcome (reward).
– Valence
• The attractiveness/importance of the performance reward
(outcome) to the individual.

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Increasing Motivation

Improving Expectancy Improving Instrumentality Improving Valence

Improve the ability of the Increase the individual’s belief that
individual to perform performance will lead to reward
• Make sure employees have skills • Observe and recognize performance.
for the task. • Deliver rewards as promised.
• Provide training. • Indicate to employees how previous
• Assign reasonable tasks and goals. 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.

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 Equity Theory
• Based on perceptions of fair management:
– If management actions are perceived as
unfair, employees will feel angry, outraged,
resentful.
– People are motivated when their perceived
inputs
Our equal outputs.
OurInputs
Inputs ==
Others’
Others’Inputs
Inputs
(contributions)
(contributions) (contributions)
(contributions)

Our
OurOutputs
Outputs Others’
Others’Outputs
Outputs
==
(rewards)
(rewards) (rewards)
(rewards)

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 Rewarding People Equitably
• People will compare their own perceived
inputs and outputs to those they perceive
that others receive
• When inequity is perceived, employees will
attempt to reduce it by reducing inputs or
increasing output

.
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3–37
 Motivating with Equity
Theory
• Understand that equity is based on
perception, which may not be correct
– Reward equitably based on production
– Ensure that employees understand the
inputs that are required to achieve certain
outputs
– When incentive pay is used, ensure that
clear standards exist

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3–38
Exhibit The Motivation Process with the Motivation Theories
3.13

© 2012 Cengage Learning.

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Empowerment

• Delegation of power or authority to subordinates in the organization

• Enhances motivation by meeting the higher-level needs of employees
• To empower followers, leaders help them understand their importance
and value
– Provides followers with a direction within which to act freely

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Elements of Empowerment

• Employees receive:
– Information about company performance
– Knowledge and skills to contribute to company goals
• Employees have the power to make substantive decisions
• Employees understand the impact of jobs
• Employees are rewarded based on company performance

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Job Design for Empowerment

Job design: Structuring jobs to meet higher level needs and increase
motivation toward achieving goals
– Job characteristics model: Considers the core job dimensions to
enrich jobs and increase their motivational potential

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Exhibit 8.8 - The Job Characteristics Model

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Exhibit 15–7 Guidelines for Job Redesign

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Designing Motivating Jobs (cont’d)

Suggestions for Using the JCM

– Combine tasks (job enlargement) to create more meaningful work.
– Create natural work units to make employees’ work important and
whole.
– Establish external and internal client relationships to provide feedback.
– Expand jobs vertically (job enrichment) by giving employees more
autonomy.
– Open feedback channels to let employees know how well they are
doing.

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Exhibit 8.9 - The Empowerment Continuum

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Engagement

Occurs when people in an organization:

– Enjoy their work and are satisfied with their work conditions
– Contribute enthusiastically to meeting goals
– Have a sense of belonging and commitment

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Motivating Unique Groups of Workers

Motivating Diverse Workforce

– Motivating a diverse workforce through flexibility:
• Men desire more autonomy than do women.
• Women desire learning opportunities, flexible work schedules, and
good interpersonal relations.

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Motivating Unique Groups of Workers

Motivating Diverse Workforce

– Compressed workweek
• Longer daily hours, but fewer days
– Flexible work hours (flextime)
• Specific weekly hours with varying arrival, departure, lunch and
break times around certain core hours during which all employees
must be present.
– Job Sharing
• Two or more people split a full-time job.
– Telecommuting
• Employees work from home using computer links.

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Motivating Unique Groups of Workers

Motivating Professionals
– Characteristics of professionals
• Strong and long-term commitment to their field of expertise.
• Loyalty is to their profession, not to the employer.
• Have the need to regularly update their knowledge.
• Don’t define their workweek as 8:00 am to 5:00 pm.
– Motivators for professionals
• Job challenge
• Organizational support of their work

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Motivating Unique Groups of Workers

Motivating Contingent Workers

– Opportunity to become a permanent employee
– Opportunity for training
– Equity in compensation and benefits

Motivating Low-Skilled, Minimum-Wage Employees

– Employee recognition programs
– Provision of sincere praise

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus