Management A Practical Introduction Third Edition Angelo Kinicki & Brian K Williams Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Chapter 12: Motivating Employees Achieving Superior Performance in the Workplace Motivating for Performance What Motivates Employees? Do Rewards Work? How Should Jobs Be Designed? What Incentives Should Be Used Does Compensation Motivate? Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 12.1 Motivating For Performance Motivation: may be defined as the psychological processes that arouse and direct goal-directed behavior McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese 12.1 Motivating For Performance WHAT IS MOTIVATION? The psychological processes that arouse and direct goal-directed behavior is motivation In a simple model of motivation, people have needs that motivate them to perform specific behaviors for which they receive rewards that feed back and satisfy the original needs Rewards can be extrinsic (the payoff a person receives from others for performing a particular task), or intrinsic (the satisfaction a person receives from performing the particular task itself) Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Intrinsic vs Extrinsic Rewards Extrinsic = Outside Recognitio n Promotion s Gifts Intrinsic = Inside Feeling of Job Well Prid Done e Sense of Achieveme nt Praise Salary Increase Status Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 12.1 Motivating For Performance Figure 12.1: A Simple Model Of Motivation Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 12.1 Motivating For Performance WHY IS MOTIVATION IMPORTANT? It is important to motivate people to -join your organization -stay with your organization -show up for work at your organization -perform better for your organization -do extra for your organization Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 12.2 Content Perspectives On Employee Motivation WHAT KINDS OF NEEDS MOTIVATE EMPLOYEES? Theories that emphasize the needs that motivate people are content perspectives or need-based perspectives -where needs are defined as physiological or psychological deficiencies that arouse behavior Three content perspectives are Maslow’s hierarchy of needs, McClelland’s acquired needs theory, and Herzberg’s two-factor theory Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 12.2 Content Perspectives On Employee Motivation Abraham Maslow put forth the hierarchy of needs theory which proposes that people are motivated by five levels of needs: At the most basic level, people try to fulfill physiological needs (basic human needs like food, clothing, and shelter) Next, are safety needs (physical safety, emotional security, avoidance of violence) Then, belongingness needs (love, friendship, affection) Next, esteem needs (self-respect, status, reputation, recognition, and self-confidence) Finally, self-actualization needs (self-fulfillment increasing competence, using abilities to the fullest) Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 12.2 Content Perspectives On Employee Motivation Figure 12.2: Maslow’s Hierarchy of Needs Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 10 12.4 Job Design Perspectives On Motivation SHOULD FIRMS FIT PEOPLE TO JOBS, OR JOBS TO PEOPLE? In companies that fit people to jobs, the challenge then, is to make the worker compatible with the work To this, firms may use job simplification where the number of tasks a worker performs is reduced to improve productivity Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 36 12.4 Job Design Perspectives On Motivation In companies where jobs are fitted to people, the challenge is to make the work compatible to workers so that performance and job satisfaction rise Two techniques for doing this are job enlargement and job enrichment Job enlargement consists of increasing the number of tasks in a job to increase variety and motivation Job enrichment consists of building into a job such motivating factors as responsibility, achievement, recognition, stimulating work, and advancement Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 37 12.4 Job Design Perspectives On Motivation The Job Characteristics Model Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 39 12.4 Job Design Perspectives On Motivation The job characteristics model consists of five core job characteristics that affect three critical psychological states of an employee that in turn affect work outcomes - the employee’s motivation, performance, and satisfaction The five core characteristics are: -skill variety - the extent to which a job requires a person to use a wide range of different skills and abilities -task identity - the extent to which a job requires a worker to perform all the tasks needed to complete the job from beginning to end Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 40 12.4 Job Design Perspectives On Motivation -task significance - the extent to which a job affects the lives of other people, whether inside or outside the organization -autonomy - the extent to which a job allows an employee to make choices about scheduling different tasks and deciding how to perform them -feedback - the extent to which workers receive clear, direct information about how well they are performing the job Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 41 12.4 Job Design Perspectives On Motivation Figure 12.8: The Job Characteristics Model Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 42 12.4 Job Design Perspectives On Motivation HOW DOES THE MODEL WORK? High motivation, high performance, high satisfaction, and low absenteeism and turnover are associated with how much workers feel they are doing meaningful work, whether they feel they are responsible for the outcomes of the work, and whether they have knowledge of the results of the work When using the model, managers need to: -diagnose the work environment to see whether a problem exists -determine whether job redesign is appropriate -consider how to redesign the job Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 43 12.5 Reinforcement Perspectives On Motivation WHAT INCENTIVES INFLUENCE BEHAVIOR? Reinforcement theory attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated When reinforcement theory is used to change human behavior, it is called behavior modification Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 44 12.5 Reinforcement Perspectives On Motivation Reinforcement is anything that causes a given behavior to be repeated or inhibited There are four types of reinforcement: The use of positive consequences to encourage desirable behavior is called positive reinforcement The removal of unpleasant consequences following a desired behavior is called negative reinforcement The withholding or withdrawal of positive rewards for desirable behavior, so that the behavior is less likely to occur in the future is called extinction The application of negative consequences to stop or change undesirable behavior is called punishment Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 45 12.5 Reinforcement Perspectives On Motivation Figure: 12.9: Four Types of Reinforcement Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 46 12.5 Reinforcement Perspectives On Motivation When using positive reinforcement or punishment, managers should: Reward only desirable behavior Give rewards as soon as possible Be clear about what behavior is desired Have different rewards and recognize individual differences Punish only undesirable behavior Give reprimands or disciplinary actions as soon as possible Be clear about what behavior is undesirable Administer punishment in private Combine punishment and positive reinforcement Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 47 12.6 Using Compensation & Other Rewards To Motivate HOW CAN FIRMS USE COMPENSATION AND OTHER REWARDS TO MOTIVATE? Wages or salaries are usually not enough to motivate people to work hard, so many companies offer incentives as well Good incentive plans: -link measurable rewards to performance -use rewards that satisfy individual needs -offer rewards that have been agreed on by managers and employees -have believable and achievable rewards Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 48 12.6 Using Compensation & Other Rewards To Motivate Some popular incentive plans are: -pay for performance - pay is based on results using piece rates -sales commissions - pay is based on a percentage of the earnings made by sales -bonuses - cash awards given to employees who achieve specific performance objectives -profit sharing - the distribution to employees of a percentage of the company’s profits -gainsharing - the distribution of savings or gains to groups of employees who reduced costs and increased measurable productivity -stock options - certain employees are given the right to buy stock at a future date for a discounted price -pay for knowledge - employee pay is tied to the number of job relevant skills or academic degrees they earn Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 49 12.6 Using Compensation & Other Rewards To Motivate HOW CAN FIRMS USE NONMONETARY REWARDS TO MOTIVATE EMPLOYEES? Organizations need to be sure that: -employees have a balance between work and life -employees can expand their skill set -employees feel valuable Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 51 12.6 Using Compensation & Other Rewards To Motivate The most common non-monetary incentive is the flexible workplace Companies need to offer employees a means of balancing their work and their personal lives Companies need to create a work environment that is conducive to productivity Companies can help employees build their skills by developing “shadowing” programs and offering tuition reimbursement Offering sabbaticals to long-term employees gives people a change to recharge themselves Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 52 ... inequities Managers need to understand employee perceptions, allow employees to participate in important decisions, and have an appeal process in place Kinicki/Williams, Management: A Practical Introduction. .. Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 12. 1 Motivating For Performance Figure 12. 1: A Simple Model Of Motivation Kinicki/Williams, Management: A Practical Introduction. .. Motivation Figure 12. 2: Maslow’s Hierarchy of Needs Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 10 Maslow’s Hierarchy of Needs: What the Organization Can