Rewarding “A” While Hoping For “B” (cont’d) • How it affects employees: Employees do not see clear links between their performance and achievement of the goals. Employees may not have the right abilities to carry out the job. Employees want rewards different from what their supervisors think they want. Employees have different levels of motivation to do the job.
Motivation • Motivation Defined Forces either internal or external to a person that act as inducements or that influence action to do something. The forces acting upon or within a person that cause that person to behave in a specific, goal-directed manner. A psychological process that gives purpose and direction to behavior. Motivation × Ability = Performance M×A=P
Approaches to Motivation • Needs-Based Approaches Describe the specific human needs or factors within a person that energize, direct, and stop behavior. • Process Approaches Explain how thought or cognitive processes of individuals influence behavior. • Reinforcement Approaches Focus on how learning and consequences mold behavior.
The Acquired-Needs Model • Need for Achievement The drive to excel, to accomplish challenging tasks, and to achieve a standard of excellence. • Need for Power The desire to influence and control one’s environment. • Need for Affiliation The desire for friendly and close interpersonal relationships.
Process-Based Approaches • The Expectancy Model The motivation to expend effort to do something is determined by three basic individual perceptions: Effort will lead to performance. Rewards are attached to performance. Outcomes, or rewards, are valuable to the individual.
Process-Based Approaches (cont’d) • The Equity Model Focuses on an individual’s feelings about how fairly he or she is treated in comparison with others. Individuals have a perception of the ratio of their inputs compared to their own outcomes in a situation. Individuals also have a perception of the ratio of everyone else’s inputs to outcomes. Then, each person compares his or her own ration to that of everyone else.
Process-Based Approaches (cont’d) • Reinforcement Theory Based on the idea that people learn to repeat behaviors that are positively rewarded (reinforced) and avoid behaviors that are punished (not reinforced). Application of reinforcement theory (also called behavior modification) involves changing one’s own behavior or the behavior of another. Managers should reward desirable employee behavior (e.g., high performance) and punish behavior (e.g., poor performance) that is not.
Increasing Desired Behavior • Positive Reinforcement The administration of positive and rewarding consequences following a desired behavior. • Negative Reinforcement Also called avoidance learning, strengthens desired behavior by allowing escape from an undesirable consequence.
Decreasing Desired Behavior • Extinction The withdrawal of the positive reward or reinforcing consequences for an undesirable behavior. • Punishment The administration of negative consequences following undesirable behavior.
Schedules of Reinforcement (cont’d) • Variable-Interval Schedule When reinforcement is administered at random or varying times that cannot be predicted by the employee. • Variable-Ratio Schedule Reinforcement administered after a varying or random number of occurrences.
Participative Management • Encompasses various activities in which subordinates share a significant degree of decision-making power with their immediate superiors. Involves any process where power, knowledge, information, and rewards are moved downward in the organization. When companies increase the amount of control and discretion workers have over their jobs, they empower employees and can improve the motivation of both employees and management.
Recognition Programs • Use reward and recognition programs to: Instill company values, meet goals, and improve financial performance. Provide a powerful way to motivate employees. Celebrate behaviors that reinforce the culture. Ensure that the recognition is timely, specific, and meaningful to the person who receives it. Access communication processes that reinforce values publicly.
Money as a Motivator • Money motivates: As a means (medium of exchange) to acquire things. When a “significant amount of money” is clearly tied to a desired behavior. When it is desired by the person engaging in the behavior.
Employee Ownership • Employee Ownership Assumes that owning part of a company motivates employees d to contribute to make the company more successful and more profitable. • Ownership, including stock options, works to motivate behavior only when: Productive behavior and goals have been defined. Good performance can be measured. The awards of stock or stock options are tied directly to performance.
Rewarding Team Performance • How do you reward team performance? A significant part of the reward given to team members must be based on total team performance. Individual rewards probably should be given.
However, individuals should be rewarded for
contributing to the team success, effort, and function… not for individual performance itself.
International Perspectives • No single approach to motivation (or achievement) fits— there are significant differences in what motivates individuals from other cultures and countries. • Managers in multinational corporations take the social character, values, and cultural practices of each country into consideration when determining compensation packages, responsibilities, rules and procedures, organizational structure, control systems, job design, and management techniques. • A well-managed, diverse workforce is instrumental for a globalized firm’s competitive advantage.