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Part 4 Leadership Challenges in the 21st Century

Chapter
14
Motivating
Organizational
Members

PowerPoint Presentation by Charlie Cook


The University of West Alabama
© 2007 Thomson/South-Western. All rights reserved.
Rewarding “A” While Hoping For “B”
• Steven Kerr’s classic article argued that many
organizations and managers want one thing but
reward other things instead.
• Why do they (managers) do this?
 Managers have not clearly identified what is
necessary for good performance.
 Managers have not determined how to measure
successful performance.

© 2007 Thomson/South-Western. All rights reserved. 14–2


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.

© 2007 Thomson/South-Western. All rights reserved. 14–3


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

© 2007 Thomson/South-Western. All rights reserved. 14–4


Figure 14.1 The Relationship between Motivation and Performance

© 2007 Thomson/South-Western. All rights reserved. 14–5


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.

© 2007 Thomson/South-Western. All rights reserved. 14–6


Needs-Based Approaches to
Motivation
Maslow’s Herzberg’s
Hierarchy of Needs Two-Factor Model

Motivation

Acquired-Needs Model

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Figure 14.2 Maslow’s Hierarchy of Needs

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Figure 14.3 Herzberg’s Two-Factor Theory

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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.

© 2007 Thomson/South-Western. All rights reserved. 14–10


Process-Based Approaches to
Motivation
Expectancy Model

Expectancy Model

Goal Setting

Reinforcement
Theory

© 2007 Thomson/South-Western. All rights reserved. 14–11


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.

© 2007 Thomson/South-Western. All rights reserved. 14–12


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.

© 2007 Thomson/South-Western. All rights reserved. 14–13


Process-Based Approaches (cont’d)
• Goal Setting
 A process intended to increase efficiency and
effectiveness by specifying the desired outcomes
toward which individuals, groups, departments, and
organizations work.
• Goals setting serves three purposes:
 To guide and direct behavior toward overall
organizational goals and strategies.
 To provide challenges and standards against which
the individual can be assessed.
 To define what is important and provide a framework
for planning.
© 2007 Thomson/South-Western. All rights reserved. 14–14
SMART Goal Setting
• Effective goal setting should be:
 S pecific
 M easurable
 A chievable
 R esults oriented
 T ime-related

© 2007 Thomson/South-Western. All rights reserved. 14–15


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.

© 2007 Thomson/South-Western. All rights reserved. 14–16


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.

© 2007 Thomson/South-Western. All rights reserved. 14–17


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.

© 2007 Thomson/South-Western. All rights reserved. 14–18


Schedules of Reinforcement
• Interval Reinforcement
 Reinforcement that is based on time.
• Ratio Reinforcement
 Reinforcement that is based on exhibiting the desired
behavior.
• Fixed Reinforcement
 Reinforcement that is administered at each interval or
for each desired behavior.
• Variable Reinforcement
 The reinforcer is given at essentially a random time or
random occurrence of the desired behavior.
© 2007 Thomson/South-Western. All rights reserved. 14–19
Schedules of Reinforcement (cont’d)
• Fixed-Interval Schedule
 Rewards employees at specific time intervals,
assuming that the desired behaviors have continued
at an appropriate level.
• Fixed-Ratio Schedule
 Provides a reinforcement after a fixed number of
occurrences of the desired behavior.

© 2007 Thomson/South-Western. All rights reserved. 14–20


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.

© 2007 Thomson/South-Western. All rights reserved. 14–21


Motivational Challenges for Today’s
Managers
• Participative Management
• Recognition Programs
• Money as a Motivator
• Employee Ownership
• Rewarding Team Performance

© 2007 Thomson/South-Western. All rights reserved. 14–22


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.

© 2007 Thomson/South-Western. All rights reserved. 14–23


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.

© 2007 Thomson/South-Western. All rights reserved. 14–24


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.

© 2007 Thomson/South-Western. All rights reserved. 14–25


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.

© 2007 Thomson/South-Western. All rights reserved. 14–26


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.

© 2007 Thomson/South-Western. All rights reserved. 14–27


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.

© 2007 Thomson/South-Western. All rights reserved. 14–28