McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Chapter 12 Motivation McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Learning Objectives After reading this chapter, you should be able to: Understand the basic approaches to motivation Use goal setting to increase employee effort Improve performance and solve worker performance problems by applying various motivation models Use reinforcement principles to achieve higher performance Differentiate between motivation and other possible influences on performance McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Motivation Categories of Theories: Content theories of motivation seek to understand what underlies and drives motivation Process theories of motivation seek to understand what steps can be taken to improve and maintain motivation Types of Motivation: Intrinsic motivation- comes from the personal satisfaction of the work itself Extrinsic motivation – comes from the rewards that are linked to job performance, such as a paycheck McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Content View of Motivation Maslow’s Hierarchy of Needs Alderfer’s ERG Theory McClelland’s Need Theory Herzberg’s TwoFactor Theory McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Maslow’s Hierarchy of Needs Self-actualization Esteem Needs Social Needs Safety Needs Physiological Needs McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Alderfer’s ERG Theory G row t h R el i atonshi ps Exi ence st McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Need for Achievement (nAch) McClelland’s McClelland’s Needs Theory Need for Power (nPow) Need for Affiliation (nAff) McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Herzberg’s Two-Factor Theory Hygiene Factors Motivational Factors • Quality of supervision • Rate of pay • Company policies • Working conditions • Relations with others • Job security • Career Advancement • Personal growth High McGraw-Hill Job Dissatisfaction • Recognition • Responsibility • Achievement Job Satisfaction High © 2004 The McGraw-Hill Companies, Inc All rights reserved Process View of Motivation Goal-Setting Theory Equity Theory Reinforcement Theory Expectancy Theory McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Goal-Setting Theory Effective Goals are: Accepted by employees Challenging and realistic Specific, quantifiable, and measurable McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved MBO: Cascading of Objectives Organizational Objectives Divisional Objectives Departmental Objectives The XYZ C om pany C onsum er Product s Production Sales Customer Service I ndust alProduct ri s Marketing Research Development Individual Objectives McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Equity Theory Personal Outcomes Inputs McGraw-Hill versus Others’ Outcomes Inputs © 2004 The McGraw-Hill Companies, Inc All rights reserved Equity Theory (continued) Inequity occurs when the ratio is not equivalent and creates cognitive dissonance To restore equity, people may use one of the following: : Reduce inputs by cutting back on the effort, and if the imbalance becomes too great, to leave the firm Influence the outcome, such as persuade the boss for a raise Decrease others’ outcomes, such as spread rumors about others Increase effort level if they think they are getting more than they deserve McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Reinforcement Theory Reinforcement Rewards Consequences No Rewards Behavior Punishment McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Expectancy Theory of Motivation Expectancies • Effort performance • Performance outcome Motivation Valences Performance Ability McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Motivation by Design Job Enlargement Job Rotation Job Enrichment Job Characteristics Model McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Applications of Management Perspectives—For the Manager Effective managers understand the factors that influence motivation and use them as levers to energize employees toward organizational goals Effective motivation requires much more sophistication than kicking workers harder to get more out of them Long-term effectiveness requires managers to considers the needs and perceptions of workers as well as characteristics of the work environment Managers should be able to apply the motivation theories to analyze and solve motivation difficulties McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Applications of Management Perspectives—For Managing Team A critical issue is how the teams are structured If the team is given responsibility for a project or area, they can move beyond their individual concerns and be motivated to contribute to the common goal McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Applications of Management Perspectives—For the Individual As individual performers, we should understand our own needs It is also helpful to clearly understand motivation process in the work environment It is important to clarify and manage your personal instrumentalities and valences McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved .. .Chapter 12 Motivation McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Learning Objectives After reading this chapter, you should be able to:... Theory McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Maslow’s Hierarchy of Needs Self-actualization Esteem Needs Social Needs Safety Needs Physiological Needs McGraw-Hill ©... alProduct ri s Marketing Research Development Individual Objectives McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Equity Theory Personal Outcomes Inputs McGraw-Hill versus