Motivation and Performance

Management
Focus on motivation before exam
 Goals
• Many different ways to motivate
employees.
• People have preferences for different
types of motivation.
• Link Motivation to leadership style
• Link Motivation to organizational culture.
 Performance
• Performance = motivation X ability X situational
factors (leadership support, resources, peer
support, etc).
• Attributions.
• Ability is relatively fixed. Ability linked to wages.
• Supervisors can work largely on motivation or
situational factors. In this class focus on
leadership support and peer support (teams).
Other classes resource (ex. MIS).
Focus on Motivation for now.
 Motivation is important in
management
• Basic job motivation. Most firms have
average workers. Exceptional firms
motivate average workers. (note some
firms have high pay and select talented
employees).
• Change efforts
• Supervision is easier if people are trying.
 Think of a time when you were
highly motivated
• Describe the circumstances.
 8-18

Intrinsic vs. Extrinsic Motivation

• Intrinsic • Extrinsic
Motivation being Motivation
driven by positive motivation caused
feelings by the desire to
associated with attain specific
doing well on a outcomes
task or job

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

 8-19
Figure 8-6

A Model of Intrinsic Motivation

Opportunity Accomplishment
Rewards Rewards

From Sense of Sense of

Task Choice Competence
Activities

From Sense of Sense of

Task
Purpose Meaningfulness Progress

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

 Models of intrinsic motivation
• Video
• How do they create meaning, choice,
competence, progress?
 8-15
Figure 8-5

The Job Characteristics Model

Core
Critical
job Outcomes
psychological
characteristics
state

 Skill variety  Experienced  High intrinsic

 Task identity meaningfulness work
 Task significance of work motivation
 Experienced  High growth
responsibility for satisfaction
 Autonomy
outcomes of the  High general job
work satisfaction

 Knowledge of the  High work

 Feedback from
actual results of
job effectiveness
the work activities

McGraw-Hill Moderators .

1. Knowledge and skill

2. Growth need strength
3. Context satisfaction
 Advantages of intrinsic Motivation
• Low cost
• Persistence is high
• Unleash employees for change.
• Builds relationships internally and
externally
 Disadvantages
• Control freaks nightmare
• Strategic change is difficult.
 Intrinsic Motivation
• Often ignored in today’s work
environment.
• Its what many of the best firms do! Very
few average or below average firms do
not.
• Not leadership per se but more
organizational culture.
• Leadership style needs to be supportive to
create the culture.
 Extrinsic Motivation
• Many different approaches.
• Debate highlighted these issues.
First, What can be used as rewards
Punishments.
 Equity approaches
• Discussed earlier.
 9-5
Figure 9-1

Negative and Positive Inequity

A. An Equitable Situation

Other
Self

$2 $4
= $2 per hour = $2 per hour
1 hour 2 hours

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

 9-2
Factors Considered When Making Table 9-1

Equity Comparisons
Inputs Outcomes
Time Pay/bonuses

Education/training Fringe benefits

Experience Challenging
assignments

Past Performance Ability and Skill Time off with

pay/Job security
Effort Recognition
McGraw-Hill .
 Factors Considered When Making
9-3
Table 9-1 cont.

Equity Comparisons
Inputs Outcomes
Creativity Career
advancement/promotions

Seniority Status symbols

Loyalty to organization Pleasant/safe

working
environment
Age Opportunity for
personal
growth/development
McGraw-Hill
 9-9
Since perceptual many ways to
Table 9-2

manage
Methods Examples
1) Person can increase his or her Work harder; attend
inputs school or a
specialized program
2) Person can attempt to increase Don’t work as hard;
his take longer breaks
or her inputs
3) Person can attempt to increase Ask for a raise; ask
his or her outcomes for a new title;seek
outside intervention
4) Person can decrease his or her Ask for less pay
outcomes

l
 Management
• Perceived Justice is important to
employee.
• Some are more equity sensitive than
others.
• Depends.
• Some questions. Debate if pay should be
made public. What would equity theory
suggest?
• Susan is a single parent. She needs to come in
late to drop her kids at school. How do you
manage this? How could equity theory guide
your choices?
• Can you be best friends or have intimate
relations with your one subordinate?
• Here is a tough one. Which leadership style is
most equity sensitive? Least equity sensitive?
Expectancy theory is closely linked
to reward theory.
• Assumes People will do what is most
rewarding for them.
• So as students, choice to work and earn
more money or study.
• Work for a course where all get As or
course where full range distribution.
• Work in a course where can get an A or
work in a course where lucky to get B but
unlikely to fail.
 Employees make the same
choices.
• What gets you ahead on your job. Playing
golf with your boss or doing a good job.
• Your job is MIS systems. You are the
nerd of all nerds. Love programming and
hate people. Job requires meeting clients
needs. Spend more time programming or
talking to clients?
• Effort Performance Outcomes
 9-14

Vroom’s Expectancy Theory

• Expectancy belief that effort leads to a
specific level of performance
• Instrumentality a performance
outcome perception
• Valence the value of a reward or
outcome

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

 9-15
Factors that Influence and
Employee’s Expectancy Perceptions
• Self-esteem
• Self-efficacy
• Previous success at the task
• Help received from a supervisor and
subordinates
• Information necessary to complete the
task
• Good materials and equipment to do work
with
 Factors that influence
Instrumentalities
• Written statements/policies
• Historical evidence.
• Past perceptions from experiences of self
and others
• Role ambiguity
 Valences
• Individual differences.
 Lets go back to Mary Martin
• Using expectancy theory, what would you
do using expectancy theory.
 Managerial implications
• Make reward systems explicit and clear.
• Make job standards explicit and clear.
• Prepare people to succeed at job
standards.
• Links to which leadership style.
• Expectancies are supervisory based.
Instrumentalities can be supervisor or
organizational culture.
 9-20
Prerequisites to Linking Performance
and Rewards
Managers should:
 Develop and communicate
performance standards
 Give valid and accurate
performance ratings
 Determine the relative mix
of individual vs. team
contribution to performance
and reward accordingly
 Use the performance ratings
to differentially allocate
rewards among employees

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

video
 Problems
• Very general and difficult to implement in
reality.
 MBO/Goal Setting
• My favorite extrinsic mode of motivation.
• Effective managers work with
subordinates to set specific, objective
performance standards. All jobs.
• Retails sales easiest.
• Police officer
• Football athletic trainer.
 9-22
Figure 9-3

Locke’s Model of Goal Setting

Directing
one’s attention

Regulating
one’s effort
Goals
motivate the Task
individual performance
by... Increasing
one’s persistence

Encouraging the
development of goal-
attainment strategies
or action plans
 9-24
Table 9-4

Insights from Goal Setting Research

1) Difficult goals lead to higher performance
2) Specific, difficult goals lead to higher
performance for simple rather than complex
tasks
3) Feedback enhances the effect of specific,
difficult goals
4) Participative goals, assigned goals, and self-
set goals are equally effective
5) Goal commitment and monetary incentives
affect goal-setting outcomes
.
 MBO
• Starts at the top. Officers set strategic
goals. Target. 5% revenue Growth
through repeat customers -- quality and
choice at a low price.
• Store manager goals
• Dept manager goals
• Floor attendants goals
• Check out goals
 Goes beyond goals
• Goals are a tool to both motivate and
identify performance problems
(performance management).
• Goals setting done jointly long time frame.
• Monitor (indirectly) if goals are being
attained.
• Provide feedback daily, weekly, monthly
• Supervisor monitors.
• Gives recognition if goals on target
• Problems solves if goals are not on target.
Done in supportive manner. What does
supervisor need to do to help? What does
subordinate need to do to help?
• Bonuses given if goals are met.
 Research supports
• But not widely used.
 Managerial implications
• Steps to adoption are specific and clear.
• Monitoring and feedback.
• Leadership style.
• Organizational culture.
 Dark side
• Game playing/Ethical lapses with outcome
measurements.
• Poor goal assessment.
 Motivation
Different approaches
Choice based on beliefs about employees,
leadership style and organizational culture.
All can be proven to be effective at
achieving different things.