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(BQ) Part 1 book Exploring management has contents: Managers and the management process - everyone becomes a manager someday; plans and planning techniques - get there faster with objectives; controls and control systems - what gets measured happens; strategy and strategic management - insight and hard work deliver results,...and other contents.
Find more at http://www.downloadslide.com Find more at http://www.downloadslide.com Find more at http://www.downloadslide.com Now with: ORION, An Adaptive Experience WileyPLUS is a research-based, online environment for effective teaching and learning WileyPLUS builds students’ confidence because it takes the guesswork out of studying by providing students with a clear roadmap: • what to • how to it • if they did it right It offers interactive resources along with a complete digital textbook that help students learn more With WileyPLUS, students take more initiative so you’ll have greater impact on their achievement in the classroom and beyond Now available for For more information, visit www.wileyplus.com Find more at http://www.downloadslide.com Based on cognitive science, WileyPLUS with ORION provides students with a personal, adaptive learning experience so they can build their proficiency on topics and use their study time most effectively Unique to ORION, students BEGIN by taking 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multiple places within WileyPLUS It does not require any additional registration, and there will not be any additional charge for students using this adaptive learning system ABOUT THE ADAPTIVE ENGINE ORION includes a powerful algorithm that feeds questions to students based on their responses to the diagnostic and to the practice questions Students who answer questions correctly at one difficulty level will soon be given questions at the next difficulty level If students start to answer some of those questions incorrectly, the system will present questions of lower difficulty The adaptive engine also takes into account other factors, such as reported confidence levels, time spent on each question, and changes in response options before submitting answers The questions used for the adaptive practice are numerous and are not found in the WileyPLUS assignment area This ensures that students will not be encountering questions in ORION that they may also encounter in their WileyPLUS assessments ORION also offers a number of reporting options available for instructors, so that instructors can easily monitor student usage and performance WileyPLUS with ORION helps students learn by learning about them.TM Find more at http://www.downloadslide.com {FOURTH EDITION Exploring Management John R Schermerhorn, Jr Ohio University with contributions from Susan Berston City College of San Francisco Find more at http://www.downloadslide.com VICE PRESIDENT & EXECUTIVE PUBLISHER EXECUTIVE EDITOR CONTENT EDITOR EDITORIAL ASSISTANT DIRECTOR OF MARKETING SENIOR MARKETING MANAGER MARKETING ASSISTANT DESIGN DIRECTOR COVER AND INTERIOR DESIGNER SENIOR CONTENT MANAGER SENIOR PRODUCTION EDITOR SENIOR PRODUCT DESIGNER EDITORIAL OPERATIONS MANAGER MEDIA SPECIALIST SENIOR PHOTO EDITOR PHOTO RESEARCHER COVER PHOTO EXPLORE YOURSELF PHOTO TIPS TO REMEMBER PHOTO MANAGER’S LIBRARY PHOTO STEPS FOR FUTHER LEARNING—BUILD PHOTO STEPS FOR FUTHER LEARNING—GET PHOTO STEPS FOR FUTHER LEARNING—DO PHOTO George Hoffman Lisé Johnson Jennifer Manias Jacqueline Hughes Amy Scholz Kelly Simmons Marissa Carroll Harry Nolan Thomas Nery Dorothy Sinclair Erin Ault Allison Morris Yana Mermel Elena Santa Maria Mary Ann Price Susan McLaughlin © FrankMay/dpa/Corbis © Greg Epperson/iStockphoto © Helder Almeida/iStockphoto © Nikki Bidgood/iStockphoto © Cubens 3d/Shutterstock â Stuart Miles/Shutterstock â Sergey Nivens/Shutterstock đ This book was typeset in 11/14 Kepler Std Regular at Aptara , Inc and printed and bound by Courier/Kendallville The cover was printed by Courier/Kendallville This book is printed on acid free paper ϱ Founded in 1807, John Wiley & Sons, Inc has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business Among the issues we are addressing are carbon impact, paper specifications and procurement, ethical conduct within our business and among our vendors, and community and charitable support For more information, please visit our website: www.wiley com/go/citizenship Copyright © 2014, 2012, 2010, 2007 John Wiley & Sons, Inc All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, (201)748-6011, fax (201)748-6008, website http://www.wiley.com/ go/permissions Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their courses during the next academic year These copies are licensed and may not be sold or transferred to a third party Upon completion of the review period, please return the evaluation copy to Wiley Return instructions and a free of charge return shipping label are available at www.wiley.com/go/returnlabel If you have chosen to adopt this textbook for use in your course, please accept this book as your complimentary desk copy Outside of the United States, please contact your local representative ISBN 13 978-1-118-62019-9 Printed in the United States of America 10 Find more at http://www.downloadslide.com ■ I once again dedicate this book to the person who lovingly helps me explore and appreciate life’s wonders: My wife, Ann J.R.S Find more at http://www.downloadslide.com ■ About the Author DR JOHN R SCHERMERHORN JR is the Charles G O’Bleness Emeritus Professor of Management in the College of Business at Ohio University where he teaches undergraduate and MBA courses in management, organizational behavior, and Asian business He earned a PhD degree in organizational behavior from Northwestern University, after receiving an MBA degree (with distinction) in management and international business from New York University and a BS degree in business administration from the State University of New York at Buffalo Dr Schermerhorn’s teaching and writing bridges the gap between the theory and practice of management He has won awards for teaching excellence at Tulane University, The University of Vermont, and Ohio University, where he was named a University Professor, the university’s leading campus-wide award for undergraduate teaching He also received the excellence in leadership award for his service as Chair of the Management Education and Development Division of the Academy of Management Dr Schermerhorn brings a unique global dimension to his scholarship He holds an honorary doctorate from the University of Pécs in Hungary, awarded for his international scholarly contributions to management research and education He served as a Visiting Fulbright Professor at the University of Botswana, Visiting Professor of Management at the Chinese University of Hong Kong, on-site Coordinator of the Ohio University MBA and Executive MBA programs in Malaysia, and Kohei Miura Visiting Professor at the Chubu University of Japan Presently he is Adjunct Professor at the National University of Ireland at Galway, a member of the graduate faculty at Bangkok University in Thailand, and Permanent Lecturer in the PhD program at the University of Pécs in Hungary Educators and students alike know Dr Schermerhorn as author of Management 12e (Wiley, 2013) and senior co-author of Organizational Behavior 12e (Wiley, 2012) His many books are available in Chinese, Dutch, French, Indonesian, Portuguese, Russian, and Spanish language editions Dr Schermerhorn has also published numerous articles in publications such as the Academy of Management Journal, Academy of Management Review, Academy of Management Executive, Organizational Dynamics, Journal of Management Education, and the Journal of Management Development Dr Schermerhorn is a popular guest speaker His student and faculty workshop topics include tensions and innovations in business education, high engagement teaching and the millennial generation, global perspectives and student learning, and textbook writing and scholarly manuscript development vi Find more at http://www.downloadslide.com ■ Author’s Message { DEAR READER: Welcome to Exploring Management, Fourth Edition I hope you find it a useful and engaging learning resource for your management course You’ll quickly see that it is a bit different from traditional textbooks, hopefully in a positive way It has all the content you expect, but • The writing voice is “personal”—you are an important part of the conversation • The presentation is “chunked”—short reading sections are followed by study guides • The content is “live”—pages are full of examples, news items, situations, and suggestions that make management real I like to say that Exploring Management reflects how much I have learned from my students about what they value, where they want to go, and how they like to study and learn It’s also a reflection of my desire as an instructor and author to bring the real world into the management class, engage students in interesting discussions of timely topics, and offer meaningful assignments and projects that promote critical thinking In short, I want the study of management to add value to your life Take a minute to look at the book’s design and flip some pages to get a feel for my writing style and pedagogy Does it leave you inspired and enthusiastic about your management course? Does it cause you to think about how management affects your everyday living? Does it give you confidence that you can develop the skills needed for a successful career? And, does it help you understand how well-managed organizations can make a positive difference in society? Please join me in using Exploring Management, Fourth Edition, to help make your management course a great learning opportunity, one that offers lifelong benefits I believe you’ll find the experience rich with lasting personal and professional value Have a great course, and enjoy working with your instructor Sincerely Prof John R Schermerhorn, Jr Ohio University vii Find more at http://www.downloadslide.com ■ ||| Preface What makes Exploring Management different? Students tell me over and over again that they learn best when their courses and assignments fit well in the context of their everyday lives, career aspirations, and personal experiences I have written Exploring Management Fourth Edition, to meet and engage the new generation of students in their personal spaces It uses lots of examples, applications, visual highlights, and learning aids to convey the essentials of management It also asks students lots of thought-provoking questions as they read My hope is that this special approach and underlying pedagogy will help management educators find unique and innovative ways to enrich the learning experiences of their students ■ Exploring Management offers a flexible, topic-specific presentation The first thing you’ll notice is that Exploring Management presents “chunks” of material to be read and digested in short time periods This is a direct response to my classroom experiences where I, and my students, find typical book chapters cumbersome to handle Students never read more than several pages in Exploring Management before hitting a “Study Guide” that allows them to bring closure to what they have just read This chunked pedagogy motivates students to read and study assigned material before attending class And, it helps them perform better on tests and assignments Topics in the book are easily assignable and sized just right for a class session Although presented in the traditional planning, organizing, leading, and controlling framework, chapters can be used in any order based on instructor preferences Many options are available for courses of different types, lengths, and meeting schedules, including online and distance-learning formats It all depends on what fits best with course objectives, learning approaches, and instructional preferences ■ Exploring Management uses an integrated learning design Every chapter opens with a catchy subtitle and clear visual presentation that quickly draws students into the topic Th e opening Management Live vignette links chapter topics with popular culture examples from movies and television Key learning objectives are listed in Your Chapter Takeaways while What’s Inside highlights five interesting and useful chapter features—Explore Yourself, Role Models, Ethics Check, Facts to Consider, and Manager’s Library Each chapter section begins with a visual overview that poses a Takeaway Question followed by a list of Answers to Come These answers become the subheadings that organize section content The section ends with a Study Guide This one-page checkpoint asks students to pause, and check learning before moving on to the next section The Study Guide elements include— • • • • • Rapid Review—bullet-list summary of concepts and points Terms to Define—glossary quiz for vocabulary development Be Sure You Can—checkpoint of major learning outcomes for mastery Questions for Discussion—questions to stimulate inquiry and prompt class discussions Career Situation: What Would You Do?—asks students to apply section topics to a problem-solving situation ■ Exploring Management makes “flipping” the classroom easy “Flipped” classrooms shift the focus from instructors lecturing and students listening, to instructors guiding and students engaging The first step in doing the flip is getting students to read and study assigned materials before class When they come to class prepared, the instructor has many more options for engagement The chunked presentation, frequent Study Guides, and integrated learning design of Exploring Management help greatly in this regard Success in flipping the classroom requires a good short quiz and testing program to assure student learning Exploring Management is nicely integrated with the advanced WileyPLUS online environment (see p x) to make this easy And, the viii Find more at http://www.downloadslide.com 322 EXPLORING MANAGEMENT Takeaway 13.2 How Do Thoughts and Decisions Affect Motivation to Work? ANSWERS TO COME Equity theory explains how social comparisons motivate individual behavior Expectancy theory considers Motivation ϭ Expectancy ϫ Instrumentality ϫ Valence Goal-setting theory shows that well-chosen and well-set goals can be motivating ■ ■ ■ Have you ever received an exam or project grade and felt good about it, only to get discouraged when you hear about someone who didn’t work as hard getting the same or a better grade? Or, have you ever suffered a loss of motivation when the goal set by your boss or instructor seems so high that you don’t see any chance at all of succeeding? My guess is that most of us have had these types of experiences, and perhaps fairly often They raise the question of exactly what influences decisions to work hard or not in various situations The equity, expectancy, and goal-setting theories of motivation offer possible answers ||| Equity theory explains how social comparisons motivate individual behavior The equity theory of motivation is best known in management through the work of J Stacy Adams.13 Based on the logic of social comparisons, it pictures us continually checking our rewards for work accomplished against those of others Any perceived inequities in these comparisons are uncomfortable This makes us motivated to act in ways that restore a sense of equity to the situation Think of it this way Personal rewards vis-a-vis ` personal inputs are compared to Others’ rewards vis-a-vis ` others’ inputs with the result of Perceived Equity Perceived Inequity The individual is comfortable and satisfied with the situation The individual feels discomfort and acts to eliminate the felt inequity Check these equity dynamics against your own experiences How have you reacted when your grade seems unfair compared with others? Did you reduce your efforts in the future drop the course rationalize that you really didn’t work that hard complain to the instructor and request a higher grade? All of these Find more at http://www.downloadslide.com Motivation ■ Chapter 13 Image Source/Getty Images are ways to reduce the perceived grading inequity And they are the same types of behaviors that perceived inequity can motivate people to engage in at work Only instead of grades, the sources of inequity are more likely to be pay raises, job assignments, work schedules, office “perks,” and the like Pay, of course, is the really big one! Research on equity theory has largely occurred in the laboratory It is most conclusive with respect to perceived negative inequity—feeling uncomfortable at being unfairly treated People who feel underpaid, for example, may experience disappointment or even a sense of anger They will be motivated to try to restore perceived equity to the situation This might be done by reducing work efforts to compensate for the missing rewards, asking for more rewards or better treatment, or even by quitting the job.14 Interestingly, there is also some evidence for an equity dynamic among people who feel overpaid This perceived positive inequity is associated with a sense of guilt It is discomfort felt over benefitting from unfair treatment The individual is motivated to restore perceived equity by doing such things as increasing the quantity or quality of work, taking on more difficult assignments, or working overtime Do you think this really happens? What if one of your instructors decides to inflate the grades of students on early assignments, thinking that perceived positive inequities will motivate them to study harder for the rest of the course? Would you work harder or perhaps work less? { 323 Perceived negative inequity is discomfort felt over being harmed by unfair treatment Perceived positive inequity is discomfort felt over benefitting from unfair treatment “SHOULD I PASS THIS INFORMATION AROUND ANONYMOUSLY SO THAT EVERYONE KNOWS WHAT’S GOING ON?” Ethics Check ■ Information Goldmine is an Equity Dilemma A worker opens the top of the office photocopier and finds a document someone has left behind It’s a list of performance evaluations, pay, and bonuses for 80 co-workers She reads the document Lo and behold, someone she considers a “nonstarter” is getting paid more than others regarded as “super workers.” New hires are also being brought in at much higher pay and bonuses than those of existing staff And to make matters worse, she’s in the middle of the list and not near the top, where she would have expected to be The fact is she makes a lot less money than many others Looking at the data, she begins to question why she is spending extra hours working on her laptop evenings and weekends at home, trying to a really great job for the firm She wonders to herself: “Should I pass this information around anonymously so that everyone knows what’s going on? Or should I quit and find another employer who fully values me for my talents and hard work?” In the end she decided to quit, saying: “I just couldn’t stand the inequity.” She also decided not to distribute the information to others in the office because “it would make them depressed, like it made me depressed.” YOU DECIDE What would you in this situation? You’re going to be concerned and perhaps upset Would you hit “print,” make about 80 copies, and put them in everyone’s mailboxes—or even just leave them stacked in a couple of convenient locations? That would get the information out into the gossip chains pretty quickly But is this ethical? If you don’t send out the information on the other hand, is it ethical to let other workers go about their days with inaccurate assumptions about the firm’s pay practices? By quitting and not sharing the information, did this worker commit an ethics mistake? Find more at http://www.downloadslide.com 324 EXPLORING MANAGEMENT Although there are no clear answers available in equity theory, there are some very good insights The theory is a reminder that rewards perceived as equitable should positively affect satisfaction and performance; those perceived as inequitable may create dissatisfaction and cause performance problems.15 Probably the best advice is to anticipate potential equity problems from social comparisons whenever rewards of any type are being allocated It’s important to recognize that people may compare themselves not only with co-workers but also with others elsewhere in the organization, including senior executives, and even persons employed by other organizations And, we should always remember that people behave according to their perceptions If someone perceives inequity in a work situation, it is likely to affect his or her behavior whether the manager sees things the same way or not ||| Expectancy theory considers Motivation ϭ Expectancy ϫ Instrumentality ϫ Valence Victor Vroom offers another approach to understanding motivation His expectancy theory asks: What determines the willingness of an individual to work hard at tasks important to the organization?16 Vroom answers this question with an equation: Motivation ϭ Expectancy ϫ Instrumentality ϫ Valence Expectancy is a person’s belief that working hard will result in high task performance Instrumentality is a person’s belief that various outcomes will occur as a result of task performance Valence is the value a person assigns to work-related outcomes The terms in this expectancy equation are defined as follows Expectancy is a person’s belief that working hard will result in achieving a desired level of task performance (sometimes called effort-performance expectancy) Instrumentality is a person’s belief that successful performance will lead to rewards and other potential outcomes (sometimes called performance-outcome expectancy) Valence is the value a person assigns to the possible rewards and other workrelated outcomes Think of them this way Person exerts work effort to achieve task performance and realize work-related outcomes Expectancy Instrumentality Valence “Can I achieve the desired level of task performance?” “What work outcomes will be received as a result of the performance?” “How highly I value work outcomes?” The use of multiplication signs in the expectancy equation (M ϭ E ϫ I ϫ V) has important implications Mathematically speaking, a zero at any location on the right side of the equation will result in zero motivation This means that we cannot neglect any of the three factors—expectancy, instrumentality, or valence For motivation to be high, all three must be positive Are you ready to test this theory? Most of us assume that people will work hard to get promoted But is this necessarily true? Expectancy theory predicts that motivation to work hard for a promotion will be low if any one or more of three conditions apply If expectancy is low, motivation suffers The person feels that he Find more at http://www.downloadslide.com Motivation ■ Chapter 13 or she cannot achieve the performance level necessary to get promoted So why try? If instrumentality is low, motivation suffers The person lacks confidence that high performance will actually result in being promoted So why try? If valence is low, motivation suffers The person doesn’t want a promotion, preferring less responsibility in the present job So, if it isn’t a valued outcome, why work hard to get it? Figure 13.4 summarizes the management implications of expectancy theory It is a reminder that different people are likely to come up with different answers to the question: Why should I work hard today? Knowing that their answers will differ, Vroom’s point is that each person must be respected as an individual with unique work needs, preferences, and concerns His theory identifies the following ways to this while creating work environments that are high in motivating potential To have high expectancies, people must believe in their abilities; they must believe that if they try hard to something, they can perform well at it Managers can help build these expectancies by selecting workers with the right abilities for the jobs to be done, providing them with the best training and development, and supporting them with resources so that the jobs can be done very well All these factors stimulate motivation based on something called self-efficacy, a person’s belief that they are capable of performing a task To have high instrumentalities, people must perceive that their performance accomplishments will be followed by desired work outcomes In others words, they believe that performance will lead to valued rewards Managers can create positive instrumentalities by taking care to clarify the rewards to be gained by high performance They must also continually confirm this “promise,” so to speak, To Maximize Expectancy Make the person feel competent and capable of achieving the desired performance level Select workers with ability Train workers to use ability Support work efforts Clarify performance goals To Maximize Instrumentality Make the person confident in understanding which rewards and outcomes will follow performance accomplishments Clarify psychological contracts Communicate performance– outcome possibilities Demonstrate what rewards are contingent on performance To Maximize Valence Make the person understand the value of various possible rewards and work outcomes Identify individual needs Adjust rewards to match these needs FIGURE 13.4 How Can Managers Use the Insights of the Expectancy Theory of Motivation? Managers should act in ways that maximize expectancies, instrumentalities, and valences for others To maximize expectancy, they need to hire capable workers, train and develop them continuously, and communicate goals and confidence in their skills To maximize instrumentality, managers must clarify and stand by performance-reward linkages Finally, to maximize valence, they need to understand individual needs and try to tie work outcomes to important sources of need satisfaction 325 Self-efficacy is a person’s belief that they are capable of performing a task Find more at http://www.downloadslide.com 326 EXPLORING MANAGEMENT by actually delivering the expected results Any disconfirmation or failure to deliver will diminish the instrumentality To have high and positive valences, people must value the outcomes associated with high performance This means that the reward being offered is what they really want Of course, this is a major source of individual differences But managers should be able to use insights of the content theories—Maslow, Alderfer, and McClelland, for example—to best match important individual needs with the rewards and outcomes that can be earned through high performance ||| Goal-setting theory shows that well-chosen and well-set goals can be motivating Listed by Black Enterprise as one of America’s most powerful CEOs, Steven A Davis’s pathway to success began as a a child who grew up with a lot of encouragement from his parents “They never said that because you are an African American you can only go this far or only this or that,” he says, “they just said ‘go for it.’ ” Davis also says that when he graduated from college, he set goals—to be corporate vice president in 10 years and a president in 20 He made it; Davis rose through a variety of management jobs to become president of Long John Silver’s, part of Yum! Brands, Inc He is now chairman of the board and CEO of Bob Evans Farms in Columbus, Ohio.17 If asked to comment on this example, scholar Edwin Locke would likely point out that Davis found lots of motivation through the goals he set as a college graduate The basic premise of Locke’s goal-setting theory is that task goals can be a great source of motivation.18 But, they become motivational only if they are the right goals and if they are set in the right ways.19 Goals give direction to people in their work Goals clarify the performance expectations between leaders and followers, among co-workers, and even across subunits in an organization Goals establish a frame of reference for task feedback, and they provide a foundation for control and self-management.20 In these and related ways, Locke believes goal setting is a very practical and powerful motivational tool { TELLING YOURSELF OR SOMEONE ELSE TO “DO YOUR BEST” ISN’T GOOD ENOUGH WHEN IT COMES TO GOAL SETTING Tips to Remember ■ How to Make Goal Setting Work for You • Set specific goals: They lead to higher performance than more generally stated ones, such as “do your best.” • Set challenging goals: When viewed as realistic and attainable, more difficult goals lead to higher performance than easy goals • Build goal acceptance and commitment: People work harder for goals they accept and believe in; they resist goals forced on them • Clarify goal priorities: Make sure that expectations are clear as to which goals should be accomplished first, and why • Provide feedback on goal accomplishment: Make sure that people know how well they are doing with respect to goal accomplishment • Reward goal accomplishment: Don’t let positive accomplishments pass unnoticed; reward people for doing what they set out to Find more at http://www.downloadslide.com Digital Vision/Getty Images Motivation { ■ Chapter 13 327 “SOME MEN OVER 60 THINK SUITABLE FEMALES DON’T EXIST BECAUSE THEY HAVE NEVER HAD WOMEN AS THEIR PEERS.” Facts to Consider ■ Europe Turns to Quotas to Increase Female Board Members The consulting firm McKinsey & Company reports that women are hired to fill more than 50% of professional jobs in America’s large corporations But then they start leaking from the career pipeline They hold 3% of CEO positions, 14% of C-suite jobs, and 28% of director positions on corporate boards Data from the rest of the world are worse Women hold just 13.7% of seats on corporate boards in Europe and 7.1% elsewhere Diane Segalen, senior executive at a Paris-based executive search company, says: “Some men over 60 think suitable females don’t exist because they have never had women as their peers They think women can’t take the pressure involved in serving on a board.” • British firms are under threat of mandatory quotas unless the proportion of nonexecutive board seats filled by females rises to 25% by 2015, versus 12.5% at present • Norway, Spain, Iceland, and France have adopted a mandatory quota of 40% female board members • When legislation was proposed to the European Commission requiring all EU-listed companies to appoint women to 40% of nonexecutive board seats by 2020, it was later pulled for lack of support Some member countries say they plan to file it again in the future • A Heidrick & Struggles survey in the United States showed 51% of women directors supporting quotas like those appearing in Europe Only 25% of men directors voiced similar support YOUR THOUGHTS? Is underrepresentation of women on boards a “pipeline” problem—not enough qualified women available for these senior positions at this point in time? Or, is it a “discrimination” problem—men at the top still aren’t ready to open the doors to female candidates? And when it comes to correcting the problem, is it enough to sit back and wait for change? Or, are quotas like ones used in Europe the way to motivate positive action? So, what makes a goal motivational? Research by Locke and his associates answer this question by advising managers and team leaders to focus on goal specificity—the more specific the better, and on goal difficulty—challenging but not impossible They also point out that people are more likely to accept and commit to accomplishing goals when they participate in setting them.21 Although these findings sound ideal and good, we have to be realistic We can’t always choose our own goals There are many times in work when goals come to us from above, and we are expected to help accomplish them Does this mean that the motivational properties of goal setting are lost? Not necessarily Even when the goals are set, there may be opportunities to create motivation by allowing people to participate in choosing how to best pursue them It is also true that a lack of time may make participation hard or impossible But, Locke’s research also suggests that workers will respond positively to externally imposed goals if they trust the supervisors assigning them and they believe the supervisors will adequately support them As you might suspect, the goal setting ideas presented in Tips to Remember can be a tall order It is no easy task for managers to work with others to set the right goals in the right ways, including the element of participation Find more at http://www.downloadslide.com 328 EXPLORING MANAGEMENT STUDY How Do Thoughts and Decisions Affect GUIDE Motivation to Work? Takeaway 13.2 Rapid Review Terms to Define Expectancy Instrumentality Perceived negative inequity Perceived positive inequity Self-efficacy Valence • Adams’s equity theory recognizes that social comparisons take place when rewards are distributed in the workplace • In equity theory, any sense of perceived inequity is considered a motivating state that causes a person to behave in ways that restore equity to the situation • Vroom’s expectancy theory states that Motivation ϭ Expectancy ϫ Instrumentality ϫ Valence • Managers using expectancy theory are advised to make sure rewards are achievable (maximizing expectancies), predictable (maximizing instrumentalities), and individually valued (maximizing valence) • Locke’s goal-setting theory emphasizes the motivational power of goals that are specific and challenging as well as set through participatory means Questions for Discussion Is it against human nature to work harder as a result of perceived positive inequity? Can a person with low expectancy ever be motivated to work hard at a task? Will goal-setting theory work if the goals are fixed and only the means for achieving them are open for discussion? Be Sure You Can • • • • • • explain the role of social comparison in Adams’s equity theory list possible ways people with felt negative inequity may behave differentiate the terms “expectancy,” “instrumentality,” and “valence” explain the reason for “3” signs in Vroom’s expectancy equation, M ϭ E ϫ I ϫ V explain Locke’s goal-setting theory describe the link between goal-setting theory and MBO Career Situation: What Would You Do? It’s apparent that something is wrong with Kate Her great performance as a Web designer got her promoted to team leader for Web Design Services But you notice that she now appears anxious, stressed, and generally unhappy in the new assignment This is quite a contrast from the highly motivated and happy Kate you knew in her old job What might be wrong here, and what can you, as her supervisor, to help fix it? Find more at http://www.downloadslide.com Motivation ■ 329 Chapter 13 Takeaway 13.3 How Does Reinforcement Influence Motivation to Work? ANSWERS TO COME Operant conditioning influences behavior by controlling its consequences Positive reinforcement connects desirable behavior with pleasant consequences Punishment connects undesirable behavior with unpleasant consequences ■ ■ ■ The theories discussed so far focus on people satisfying needs, resolving felt inequities, and/or pursuing positive expectancies and task goals Instead of looking within the individual to explain motivation in these ways, reinforcement theory takes a different approach It views human behavior as determined by its environmental consequences ||| Operant conditioning influences behavior by controlling its consequences The premises of reinforcement theory rely on what E L Thorndike called the law of effect: People repeat behavior that results in a pleasant outcome and avoid behavior that results in an unpleasant outcome.22 Psychologist B F Skinner used this notion to popularize the concept of operant conditioning This is the process of influencing behavior by manipulating its consequences.23 You may think of operant conditioning as learning by reinforcement, and Figure 13.5 shows how managers stimulate it through four reinforcement strategies.24 MANAGER’S OBJECTIVE INDIVIDUAL BEHAVIOR REINFORCEMENT TYPE OF STRATEGY REINFORCEMENT Praise employee; recommend pay increase Positive reinforcement Stop complaints Negative reinforcement Meets production goals with zero defects High-quality production Withhold praise and rewards Extinction Meets production goals but with high percentage defects Reprimand employee Punishment The law of effect states that behavior followed by pleasant consequences is likely to be repeated; behavior followed by unpleasant consequences is not Operant conditioning is the control of behavior by manipulating its consequences FIGURE 13.5 How Can Managers Use Reinforcement Strategies to Influence Work Behavior? To strengthen quality work, a supervisor might use positive reinforcement by praising the individual or negative reinforcement by no longer complaining to him about poor-quality work To discourage poor-quality work, a supervisor might use extinction (withholding things that are positively reinforcing, such as outcomes) or punishment (associating the poor-quality work with unpleasant results for the individual) Find more at http://www.downloadslide.com 330 EXPLORING MANAGEMENT Positive reinforcement strengthens or increases the frequency of desirable behavior by making a pleasant consequence contingent on its occurrence Example: A manager nods to express approval to someone who makes a useful comment during a staff meeting Negative reinforcement increases the frequency of or strengthens desirable behavior by making the avoidance of an unpleasant consequence contingent on its occurrence Example: A manager who has nagged a worker every day about tardiness does not nag when the worker comes to work on time Punishment decreases the frequency of or eliminates an undesirable behavior by making an unpleasant consequence contingent on its occurrence Example: A manager issues a written reprimand to an employee whose careless work creates quality problems Extinction decreases the frequency of or eliminates an undesirable behavior by making the removal of a pleasant consequence contingent on its occurrence Example: After observing that co-workers are providing social approval to a disruptive employee, a manager counsels co-workers to stop giving this approval If you look again at the case described in Figure 13.5, you’ll see that the supervisor’s goal is to improve work quality by an individual performer as part of a total quality management program This goal can be reached if she can get the individual to show more positive quality behaviors and stop engaging in those that harm or disregard quality goals Notice that both the positive and negative reinforcement strategies are used to strengthen desirable behavior when it occurs The punishment and extinction strategies are used to weaken or eliminate undesirable behaviors Positive reinforcement strengthens a behavior by making a desirable consequence contingent on its occurrence Negative reinforcement strengthens a behavior by making the avoidance of an undesirable consequence contingent on its occurrence Punishment discourages a behavior by making an unpleasant consequence contingent on its occurrence Michael Kovac/Getty Images Extinction discourages a behavior by making the removal of a desirable consequence contingent on its occurrence { AFTER SEEING THE SUFFERING OF POOR CHILDREN WITHOUT SHOES, MYCOSKIE WAS “INSTANTLY STRUCK WITH THE DESIRE—A SENSE OF FELT RESPONSIBILITY, TO DO MORE.” Role Models ■ Social Entrepreneur Finds Rewards from Helping Those in Need Have you ever associated having a pair of shoes with access to education? While traveling through Argentina several years ago, Blake Mycoskie witnessed firsthand the suffering endured by children without shoes They were more susceptible to cuts, scrapes, sores, and even infections from soil-transmitted diseases And because shoes are required as part of a school uniform, some of the children couldn’t go to school Mycoskie was “instantly struck with the desire—a sense of felt responsibility—to more.” When Mycoskie returned home from his travels he started a for-profit business that sourced and sold shoes But it was a shoe seller with a difference, one found in TOMS’ unique pledge to its customers: the company would give needy children one pair of shoes for every one that was sold TOMS was social entrepreneurship in action, a for-profit business that supported social action without relying on donations or grants The social business model, called One for One, became a TOMS hallmark It now includes eyewear that is sold with the same pledge—one free pair given to the needy for each pair sold In his book Start Something that Matters (Speigel & Grau, 2012), Mycoskie talks about the rewards of creating a business that has real social benefits He says that the “objective to give new shoes to children in need continues to be a powerful driver for me and everyone else at TOMS.” He’d like to share the motivation, stating that his current goal is inspiring “other people to go out into the world and have a positive impact.” WHAT’S THE LESSON HERE? Which of the motivation theories good jobs explaining why Mycoskie started TOMS and why he continues to derive satisfaction from it? What “reinforcements” does someone get from social entrepreneurship like this? How about TOMS employees? What most likely motivates them? Can you come up with ideas that take the One for One business model and use it for your own version of social entrepreneurship? Find more at http://www.downloadslide.com Motivation ||| ■ Positive reinforcement connects desirable behavior with pleasant consequences Among the reinforcement strategies, positive reinforcement deserves special attention It should be part of any manager’s motivational strategy In fact, it should be part of our personal life strategies as well—as parents working with children, for example One of the ways to mobilize the power of positive reinforcement is through shaping This is the creation of a new behavior by the positive reinforcement of successive approximations to it Sir Richard Branson, well-known founder of Virgin Group, is a believer in positive reinforcement “For the people who work for you or with you, you must lavish praise on them at all times,” he says “If a flower is watered, it flourishes If not, it shrivels up and dies.”25 David Novak, CEO of Yum! Brands, Inc., is another believer He claims “you can never underestimate the power of telling someone he’s doing a good job.”26 And Zappos takes all this one step further If an employee spots someone doing a good thing they can immediately give them a “Wow” award—it’s worth an immediate $50.27 Whether we are talking about verbal praise, a pay raise, or any other forms of positive reinforcement, two laws govern the process The law of contingent reinforcement states: For a reward to have maximum reinforcing value, it must be delivered only if the desired behavior is exhibited The law of immediate reinforcement states: The more immediate the delivery of a reward after the occurrence of a desirable behavior, the greater the reinforcing value of the reward Table 13.1—Guidelines for Positive Reinforcement and Punishment—presents several useful guidelines for using these two laws Table 13.1 Guidelines for Positive Reinforcement and Punishment Positive Reinforcement • Clearly identify desired work behaviors • Maintain a diverse inventory of rewards • Inform everyone what must be done to get rewards • Recognize individual differences when allocating rewards • Follow the laws of immediate and contingent reinforcement Punishment • Tell the person what is being done wrong • Tell the person what is being done right • Make sure the punishment matches the behavior • Administer the punishment in private • Follow the laws of immediate and contingent reinforcement ||| 331 Chapter 13 Punishment connects undesirable behavior with unpleasant consequences As a reinforcement strategy, punishment tries to eliminate undesirable behavior by making an unpleasant consequence contingent with its occurrence To punish an employee, for example, a manager may deny a valued reward—such as verbal Shaping is positive reinforcement of successive approximations to the desired behavior Law of contingent reinforcement—deliver the reward only when desired behavior occurs Law of immediate reinforcement—deliver the reward as soon as possible after the desired behavior occurs Find more at http://www.downloadslide.com 332 EXPLORING MANAGEMENT { Drive: The Surprising Truth About What Motivates Us By Daniel H Pink Manager’s Library WHAT DRIVES YOU? Two human drives are well described in motivation theory One is our self-guided biological drive for food, water, and sex—motivation to survive and procreate The second is our drive to respond to rewards and punishment from external sources, or “extrinsic motivation.” For example, you may get a job to buy groceries and provide for your family, work overtime if offered bonus pay, and avoid errors if threatened with termination In the book Drive: The Surprising Truth About What Motivates Us (2009, Riverhead Books), author Daniel Pink argues that more attention should be given to a third drive he calls “intrinsic motivation.” It includes our desire to activities because we enjoy and are gratified by them They give us purpose and satisfy our need to what we choose and value without others telling us We them not because we need to (buy groceries), or have to (avoid errors), but because we want to (enjoy work) Pink uses the term “Motivation 3.0” to reflect this third drive and recommends that managers change reward systems to improve opportunities for intrinsic motivation He points out that the economy has shifted from algorithmic work— routine, ruled-based work like product assembly, toward heuristic work—knowledge-driven, creative work that requires intuition and self-direction Reward systems need to shift too Extrinsic rewards like pay that drive algorithmic work might appeal to heuristic workers initially But once a “baseline” level of security is achieved, motivation becomes more linked to things that excite and give them purpose That’s where intrinsic motivation kicks in REFLECT AND REACT Make two lists, one of things you because you have to and the other of things you because you want to How the lists differ in the activities represented? How they differ in motivational impact on you? Can you spend a whole day doing only what you have to? Do the “have to’s” sometimes make it difficult to find motivation and satisfaction from the “want to’s”? What does this exercise say about what drives you and about what should drive you? praise or merit pay, or deliver an unpleasant outcome—such as a verbal reprimand or pay reduction Like positive reinforcement, punishment can be done poorly or it can be done well All too often, it is done both too frequently and poorly If you look again at Table 13.1, you’ll find advice on how to best handle punishment when it is necessary Whether talking about using punishment or positive reinforcement, some people complain about the underlying reinforcement principles They believe that any use of operant conditioning techniques ignores the individuality of people, restricts their freedom of choice, and fails to recognize they can be motivated by things other than extrinsic rewards Critics view this as inappropriate manipulation and control of human behavior Others agree that reinforcement involves the control of behavior but argue that control is part of every manager’s job The ethical issue, they say, isn’t whether to use reinforcement principles, but whether or not we use them well—in the performance context of the organization and in everyday living.28 How about you? Do you see reinforcement theory as full of useful insights, or as something to be feared? Find more at http://www.downloadslide.com Motivation ■ Chapter 13 333 STUDY How Does Reinforcement Influence GUIDE Motivation to Work? Takeaway 13.3 Rapid Review Terms to Define Extinction Law of contingent reinforcement Law of effect Law of immediate reinforcement Negative reinforcement Operant conditioning • Reinforcement theory views human behavior as determined by its environmental consequences • The law of effect states that behavior followed by a pleasant consequence is likely to be repeated; behavior followed by an unpleasant consequence is unlikely to be repeated • Managers use strategies of positive reinforcement and negative reinforcement to strengthen desirable behaviors • Managers use strategies of punishment and extinction to weaken undesirable work behaviors • Positive reinforcement and punishment both work best when applied according to the laws of contingent and immediate reinforcement Positive reinforcement Punishment Questions for Discussion Shaping Is operant conditioning a manipulative way to influence human behavior? When is punishment justifiable as a reinforcement strategy? Is it possible for a manager, or parent, to only use positive reinforcement? Be Sure You Can • explain the law of effect and operant conditioning • illustrate how positive reinforcement, negative reinforcement, punishment, and extinction can influence work behavior • explain the reinforcement technique of shaping • describe how managers can use the laws of immediate and contingent reinforcement when allocating rewards • list ways to make punishment effective Career Situation: What Would You Do? You can predict with great confidence that when Jason comes to a meeting of your student team, he will spend most of his time cracking jokes, telling stories, and otherwise entertaining other team members He doesn’t any real work In fact, his behavior makes it hard for the team to accomplish much in its meetings But Jason’s also a talented guy How can you put reinforcement theory to work here and turn Jason the mischief maker into a solid team contributor? Find more at http://www.downloadslide.com EXPLORING MANAGEMENT PTER 13 CHA 334 TP TestPrep 13 Answers to TestPrep questions can be found at the back of the book Multiple-Choice Questions Maslow’s progression principle stops working at the level of _ needs (a) growth (b) self-actualization (c) achievement (d) self-esteem Lower-order needs in Maslow’s hierarchy correspond to _ needs in ERG theory (a) growth (b) affiliation (c) existence (d) achievement A worker high in need for _ power in McClelland’s theory tries to use power for the good of the organization (a) position (b) expert (c) personal (d) social In the _ theory of motivation, an individual who feels underrewarded relative to a co-worker might be expected to reduce his or her work efforts in the future (a) ERG (b) acquired needs (c) two-factor (d) equity When someone has a high and positive “expectancy” in expectancy theory of motivation, this means that the person _ (a) believes he can achieve performance expectations (b) highly values the rewards being offered (c) sees a performance–reward link (d) believes rewards are equitable 10 The law of _ states that behavior followed by a positive consequence is likely to be repeated, whereas behavior followed by an undesirable consequence is not likely to be repeated (a) reinforcement (b) contingency (c) goal setting (d) effect 11 When a job allows a person to a complete unit of work, it is high on which core characteristic? (a) Task identity (b) Task significance (c) Task autonomy (d) Feedback Which of the following is a correct match? (a) McClelland–ERG theory (b) Skinner–reinforcement theory (c) Vroom–equity theory (d) Locke–expectancy theory 12 _ is a positive reinforcement strategy that rewards successive approximations to a desirable behavior (a) Extinction (b) Negative reinforcement (c) Shaping (d) Merit pay In Herzberg’s two-factor theory, base pay is considered a/an _ factor (a) hygiene (b) satisfier (c) equity (d) higher-order 13 The purpose of negative reinforcement as an operant conditioning technique is to _ (a) punish bad behavior (b) discourage bad behavior (c) encourage desirable behavior (d) cancel the effects of shaping The expectancy theory of motivation says that Motivation ϭ Expectancy ϫ Instrumentality ϫ _ (a) Rewards (b) Valence (c) Equity (d) Growth When a team member shows strong ego needs in Maslow’s hierarchy, the team leader should find ways to _ (a) link this person’s compensation with team performance (b) provide the individual with praise and recognition for good work (c) encourage more social interaction with other team members (d) assign challenging individual performance goals 14 The basic premise of reinforcement theory is that : _ (a) behavior is a function of environment (b) motivation comes from positive expectancy (c) higher-order needs stimulate hard work (d) rewards considered unfair are demotivators 15 Both Barry and Marissa are highly motivated students Knowing this, an instructor can expect them to be _ in the management course (a) hard working (b) high performing (c) highly satisfied (d) highly dissatisfied Find more at http://www.downloadslide.com Motivation ■ 335 Chapter 13 Short-Response Questions 16 What preferences does a person high in the need for achievement bring to the workplace? 17 How can a team leader use goal-setting theory in working with individual team members? 18 What are three ways a worker might react to perceived negative inequity over a pay raise? 19 How can shaping be used to encourage desirable work behaviors? Integration and Application Question 20 I once overheard a conversation between two Executive MBA students One was telling the other: “My firm just contracted with Muzak to have mood music piped into the offices at various times of the workday.” The other replied: “That’s a waste of money; there should be things to spend money on if the firm is really interested in increasing motivation and performance.” Question: Is the second student right or wrong, and why? Stepsfor FurtherLearning C H A P T E R BUILD MARKETABLE SKILLS DO A CASE ANALYSIS GET AND STAY INFORMED ■ CLASS EXERCISE 13: Why We Work Work means different things to different people practice finding each person’s story BUILD MARKETABLE SKILLS EARN BIG CAREER PAYOFFS! Don’t miss these opportunities in the Skill-Building Portfolio ■ SELF-ASSESSMENT 13: Two-Factor Profile Motivation is complicated it helps to know the difference between job content and job context ■ TEAM PROJECT 13: CEO Pay CEOs often earn quite a lot, some think too much are CEOs paid what they are worth? Many learning resources are found at the end of the book and online within WileyPLUS Take advantage of Cases for Critical Thinking ■ CHAPTER 13 CASE SNAPSHOT: Salesforce.com: Instant Praise, Instant Criticism / Sidebar on Digging in to a Free Lunch Snapshot Instead of waiting a year for a performance review, how would you like to know where you stand and always get immediate feedback about how you’re doing? The anDO nual performance review can feel like an archaic, A CASE ANALYSIS inaccurate, time-warped, STRENGTHEN YOUR boss-administered feedCRITICAL THINKING! back session Some human resource professionals call it “little more than a dysfunctional pretense.” It can be a case of information overload, covering everything from past performance, to goal setting, to pay, to improvement needs For goals accomplished today, how valuable and motivating is recognition and feedback received 12 months from now? Things could be different What if, in real time, you were able to get feedback by asking colleagues, managers, and peers online questions like: “What did you think of my presentation?” or “What can be done better?” Salesforce.com is one employer that believes such new directions are not only possible, but necessary Find more at http://www.downloadslide.com “The way a team plays as a whole determines its success You may have the greatest bunch of individual stars in the world, but if they don’t play together, the club won’t be worth a dime.” Former UCLA coach John Wooden Gary W Green, Orlando Sentinel/MCT/Getty Images ... them 11 5 Planning improves focus and action orientation 11 6 Planning improves coordination and control 11 7 Planning improves time management 11 7 5.2 What Types of Plans Do Managers Use? 12 0 •... Ambiguity 10 Performance Review Assumptions 11 Least Preferred Co-Worker Scale 12 Stress Test 13 Two-Factor Profile 14 Team Leader Skills 15 Feedback and Assertiveness 16 Diversity Awareness 17 Global... Walk 10 The Future of Labor Unions 11 Leadership Believe-It-or-Not 12 Difficult Personalities 13 CEO Pay 14 Superstars on the Team 15 How Words Count 16 Job Satisfaction Around the World 17 Globalization