Chapter Twelve

Motivating
Employees: Achieving
Superior Performance
in the Workplace
 Learning Outcome
• State the various theories,
principles and concepts of
individual behavior in
organizational setting.
• Understand basic leadership
styles and motivation in different
work environments.
 v Motivation: may be defined
as the psychological
processes that arouse and
direct goal-directed
behavior.

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McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 A SIMPLE MODEL OF MOTIVATION
Unfulfilled Motivation Behaviours
Need You search You choose a type
Desire is for ways of behaviour you
created to to satisfy think might satisfy
fulfill a the need need
need as for
food,
safety,
recognition Rewards
Two types of
rewards satisfy –
extrinsic or intrinsic

Feedback – reward informs you whether

behaviour worked and should be used again
 Extrinsic and Intrinsic Rewards

vExtrinsic vIntrinsic
reward: is the reward: is the
payoff such as satisfaction
money, a such as a
person feeling of
receives from accomplishme
others for nt a person
performing a receives from
particular task. performing a
particular task.
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 You Want to Motivate People To:

v Join your organization

v Stay with your organization
v Show up for work at your
organization
v Perform better for your
organization
v Do extra for your organization

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 Major Perspectives on
Motivation
#Content

#Process

#Reinforcement

#Job Design
 Content perspectives on
employees motivation
Contents perspectives include 3 theories:

• Maslow’s hierarchy of needs theory

• Herzberg’s two-factor theory

• McClelland’s acquired needs theory

 Maslow’s Hierarchy of Needs: What the
Organization Can Do

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 Characteristics
5. Self actualization needs - Need for Offer training, creativity,
fulfillment increasing competence,
using abilities to the fullest
4. Esteem needs - Need for self
respect, status, reputation,
recognition, self confidence
3. Belonging needs - Need for love,
friendship, affection
2. Safety needs - Need for physical
safety, emotional security, avoidence
of violence
1. Physiological needs - Need for
food, clothing, shelter
What organization can do
promotion, employee control over
job
Offer recognition, status
challenges, merit pay, employee
participation in making decisions
Offer interaction with others,
participation in workgroup, good
relationships with supervisors
Offer safe working conditions,
job security, health and retirement
benefits
Offer adequate ventilation, heat,
water, base pay
 Herzberg’s two-factor theory: Form Dissatisfying
Factors to Satisfying Factors

v Two-factor theory: proposed that

work satisfaction and dissatisfaction
arise from two different factors—
work satisfaction from so-called
motivating factors and work
dissatisfaction from so-called
hygiene factors.

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 Herzberg’s Two-Factor Theory: Satisfaction versus
Dissatisfaction

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 Motivating factors
§‘what will make my people satisfied’
§Achievement, Recognition, The work itself,
Responsibility, Advancement & growth

NO SATISFACTION SATISFACTION
NEUTRAL : NEITHER SATISFIED NOR DISSASTIFIED
DISSASTISFACTI NO DISSASTIFACTION

Hygiene factors
§‘what will make my people dissatisfied’
§Pay & security, working conditions, interpersonal
relationships, company policy, supervisors
 McClelland’s acquired needs theory
v Acquired needs theory: states that
three needs are major motives
determining people’s behavior in
the workplace:
v Need for achievement – “I need to
excel at tasks”
v Need for affiliation – “I need close
relationship”
v Need for power – “I need to
control others”
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 McClelland’s Three Needs

Achieve-
Affiliation
ment A “well-balanced
Power individual”

Achieve-
ment Affiliation

A “control freak” Power

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 Process Perspectives on
Employee Motivation
• Process Perspectives are concerned
with the thought processes by which
people decide how to act
• 3 process perspectives on
motivation:
-Expectancy theory
-Equity theory
-Goal-setting theory
 Process Perspectives: Expectancy
v Expectancy theory: suggests that
people are motivated by two things:
1) how much they want something
2) how likely they think they are to get it.
(assuming they have choices, people
will make the choice that promise them
the greatest reward if they think they
can get it)
v Three Parts:
v Expectancy
v Instrumentality
v Valence
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 Three Major Elements of
Expectancy Theory
vExpectancy: is the belief that a
particular level of effort will lead
to a particular level of
performance. (effort-to-
performance expectancy)
“Will I be able to perform at the
desired level on a task?”
v Instrumentality: is the expectation
that successful performance of the
task will lead to the outcome
desired. (performance-to-reward
expectancy)
“What outcome will I receive if I
perform at this level?”
v Valence: is value, the importance a
worker assigns to the possible
outcome or reward.
“How much do I want the outcome?”
 Expectancy Theory: The Major Elements

Performance
Effort …so Outcomes
…in …a particular
I exert order that …certain
level of task I can outcomes
an to
achieve
performance… realize
effort… ..
..

Instrumentality
Expectancy Valence

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 Using Expectancy Theory to Motivate
Employees
v What rewards do your employees
value?
v What are the job objectives and the
performance level you desire?
v Are the rewards linked to
performance?
v Do employees believe you will
deliver the right rewards for the
right performance?

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 Process Perspectives: Equity

v Equity theory: focuses on

employee perceptions as to
how fairly they think they
are being treated compared
to others.

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 Equity Theory: How People Perceive
They are Being Treated

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Equity Theory: How People Perceive They are Being
My inputs
Treated Their inputs
‘ what does it seem ‘ what does it seem
like I am putting My inputs compared like they are putting
into the job?’ with other employees’ into the job?’
: time, training, etc inputs : time, training, etc
My outputs
My outputs
‘ what does it seem My outputs (rewards) ‘ what does it seem
like I am getting
compared with other like they are getting
out the job?’
employees’ outputs out the job?’ :pay,
:pay, benefits,
Benefits, praise, etc
praise, etc
Comparison
How does it seem the ratio of
my inputs and outputs
compares with the ratio of
Equity is perceived Equity is perceived
I’m satisfied and theirs ? Are they fair (equity) I’m dissatisfied and
so I won’t change or unfair (unequity) so I will change
my behaviour my behaviour
 Using Equity Theory to
Motivate Employees

v Employee perceptions are

what count
v Employee participation
helps
v Having an appeal process
help
 Some Ways Employees Try to
Reduce Inequity
v They will reduce their inputs
v They will try to change the
outputs or rewards they receive
v They will distort the inequity
v They will change the object of
comparison
v They will leave the situation

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 Process Perspectives: Goal
Setting Theory
v Goal setting theory: suggests
that employees can be
motivated by goals that are
specific and challenging but
achievable.
v Specific goals increase
performance and difficult goals,
when accepted, result in higher
performance than easy goals.
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 Three Elements of Goal-Setting
Theory

v Goals should be specific

v Goals should be challenging
v Goals should be achievable
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 Using Goal-Setting Theory to
Motivate Employees
v Set jointly with the employee
v Are measurable
v Have a target date for
attainment
v Have feedback (People will do well
when they get feedback on how
well they are progressing)
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 Reinforcement Perspectives on
Motivation
v Reinforcement: is anything that causes
a given behavior to be repeated or
inhibited.
Positive Reinforcement: Giving Rewards
Negative Reinforcement: Avoiding
Unpleasantness
Extinction: Withholding Rewards
Punishment: Applying Negative
Consequences
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 Four Types of Reinforcement

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What the What the Manager’s type of Resulting employee
manager wants employee wants reinforcement behaviour

Positive reinforcement Increases chances

Improved Rewards employee behaviour will be
employee improvement : “you get repeated : “I’ll keep up
performance a raise and promotion!” the faster pace”
“okay, I’m Negative reinforcement Increases chances
working Avoids employee behaviour will be
Improved
faster” reprimands: “I’m no repeated : “I’ll keep up
employee
longer nagging you!” the faster pace”
performance
“I want you Extinction Reduces chances
Withholds employee behaviour will be
to work Employee rewards repeated : “I’ll have to
faster” performance “no praise, raises or work faster to receive
not improved promotion” praises or raises”
“I’m working Punishment
Reduces chances
at the pace I behaviour will be
Reprimands and
repeated : “okay, I’ll
always have” disciplines employee:
work a bit faster from
“I’m docking your pay”
now on”
 Using Positive Reinforcement to Motivate
Employees

v Reward only desirable behavior

v Give rewards as soon as
possible
v Be clear about what behavior is
desired
v Have different rewards and
recognize individual differences
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 Using Punishment to Motivate
Employees
v Punish only undesirable behavior
v Give reprimands or disciplinary
action as soon as possible
v Be clear about what behavior is
undesirable
v Administer punishment in private
v Combine punishment and positive
reinforcement
 Motivation Through Job Design
Ø Job Design: the division of an
organization’s work among its employees
and the application of motivational
theories to jobs to increase satisfaction.
-fitting people to jobs (people will
gradually adapt to any work situation)
#job simplification
-fitting jobs to people (people want more
variety, challenges and responsibility)
#job enlargement
#job enrichment
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vJob Simplification: the process of
reducing the number of tasks a
worker performs
vJob Enlargement: Increasing the
number of tasks in a job to
increase variety and motivation
vJob Enrichment: Building into a
job motivating factors such as
responsibility, achievement,
recognition, stimulating work
and advancement.
 The Job Characteristics Model

v Job characteristics model:

consists of five core job
characteristics that affect three
psychological states of an
employee that in turn affect
work outcomes—the employee’s
motivation, performance and
satisfaction.
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 Characteristics
vSkill variety – “how many different
skills does your job require?”
vTask identity – “How many different
tasks are required to complete the
work?”
vTask significance – “how many other
people are affected by your job?”
vAutonomy – “How much discretion does
your job give you?”
vFeedback – “How much do you find out
how well you’re doing?”
 The Job Characteristics Model

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 Five core job Three psychological Work
characteristics stress outcomes
•Skill variety •Experienced • High work
•Task identity meaningfulness motivation
•Task of work • High work
significance •Experienced performance
responsibility • High work
•autonomy
for work satisfaction
•feedback •outcomes
Knowledge of • Low
actual results absenteeism &
of the work turnover
Contingency factors
Degree to which individuals want personal and psychological
development
-Knowledge & skill -Desire for personal growth -Context satisfactions
 Reference
• Chapter 12
• Kinicki, A., & Williams, B.K.
(2006). Management: A
practical introduction. (4th
ed.). New York: McGraw-Hill.