Chapter 11 - Motivating for High Performance

Motivating for High Performance

Learning Outcomes Illustrate the motivation process. Explain the performance formula and how to use it. Discuss the major similarities and differences among the four content motivation theories: hierarchy of needs theory, ERG theory, two-factor theory, and acquired needs theory. Discuss the major similarities and differences among the three process motivation theories: equity theory, goal-setting theory, and expectancy theory. Explain the four types of reinforcement. State the major differences among content, process, and reinforcement theories. Define the key terms listed at the end of the chapter. After studying this chapter, you should be able to:

IDEAS ON MANAGEMENT at Market America What does Market America do to motivate its distributors, and how does it affect performance? How does Market America meet its distributors’ content motivation needs? How does Market America meet its distributors’ process motivation needs? How does Market America use reinforcement theory to motivate its distributors? Does the Market America UnFranchise ® business model for motivation work in other countries?

Motivation and Performance Motivation The willingness to achieve organizational objectives. People are motivated by self-interest—the key to understanding motivation. Motivation Process Employees go from need to motive to behavior to consequence to satisfaction or dissatisfaction.

Motivation and Performance (cont’d) The Role of Expectations in Motivation and Performance Pygmalion effect Managers’ attitudes toward, expectations of, and treatment of employees largely determine employees’ motivation and performance. Self-fulfilling prophecy “ If you believe you can or believe you can’t, then you are right”—Henry Ford. If you think you will be successful, you will be. The Performance Formula Performance = ability × motivation × resources For maximum performance, all three factors must be high.

An Overview of Three Major Classes of Motivation Theories Reinforcement Theory Content Motivation Theories Process Motivation Theories Motivation

Exhibit 11 – 1 ● Major Motivation Theories Specific Theory (Creator) Class of Motivation Theories Hierarchy of needs theory (Maslow) proposes that employees are motivated by five levels of needs: physiological, safety, social, esteem, and self-actualization. ERG theory (Alderfer) proposes that employees are motivated by three needs: existence, relatedness, and growth. Two-factor theory (Herzberg) proposes that employees are motivated by motivators (higher-level needs) rather than by maintenance factors (lower-level needs). Acquired needs theory (McClelland) proposes that employees are motivated by their need for achievement, power, and affiliation. Content motivation theories focus on identifying and understanding employees’ needs

Exhibit 11 – 1 ● Major Motivation Theories (cont’d) Specific Theory (Creator) Class of Motivation Theories Equity theory (Adams) proposes that employees will be motivated when their perceived inputs equal outputs. Goal-setting theory (Locke) proposes that achievable but difficult goals motivate employees. Expectancy theory (Vroom) proposes that employees are motivated when they believe they can accomplish the task and the rewards for doing so are worth the effort. Process motivation theories focus on understanding how employees choose behaviors to fulfill the needs.

Exhibit 11 – 1 ● Major Motivation Theories (cont’d) Specific Theory (Creator) Class of Motivation Theories Types of reinforcement Positive reinforcement is offering attractive consequences (rewards) for desirable performance to encourage the continuation of that behavior. Avoidance reinforcement is threatening to provide negative consequences for poor performance to encourage desirable behavior. Punishment is providing an undesirable consequence (punishment) for an undesirable behavior to prevent the behavior. Extinction is the withholding of reinforcement for a particular behavior. Reinforcement theory (Skinner) proposes that the consequences of behavior will motivate employees to behave in predetermined ways.

Content Motivation Theories Content Motivation Theories Focus on identifying and understanding employees’ needs. Hierarchy of needs theory ERG theory Two-factor theory Acquired needs theory

Hierarchy of Needs Theory Hierarchy of Needs Proposes that employees are motivated by five levels of needs. Hierarchy of Needs Theory Assumptions: Only unmet needs motivate. People’s needs are arranged in order of importance for basic to complex. Satisfaction of lower-level needs precedes satisfaction of higher-level needs. People have five levels of needs: Physiological needs Safety needs Social needs Esteem needs Self-actualization needs

Exhibit 11 –2 ● How Managers Motivate Based on Maslow‘s Hierarchy of Needs Theory

ERG Theory ERG Theory (Alderfer) Proposes that employees are motivated by three needs: Existence Physiological and safety needs Relatedness Social needs Growth Esteem and self-actualization needs Needs can be active on more than one level at the same time.

Exhibit 11 –3 ● Herzberg‘s Two-Factor Theory Proposes that employees are motivated by motivators rather than by maintenance factors.

Acquired Needs Theory Acquired Needs Theory (McClelland) Proposes that employees are motivated by their needs for achievement, power, and affiliation. Need for Achievement (n Ach) The desire for responsibility and accomplishment. Need for Power (n Pow) The desire to control the situation, to influence or control others, to enjoy competition in which they can win, and to be willing to confront others. Need for Affiliation (n Aff) The tendency to want to be liked by others, to seek close relationship with others, to enjoy social activities, and to seek to belong.

Exhibit 11 –4 ● A Comparison of Four Content Motivation Theories

Process Motivation Theories Process Motivation Theories Focus on understanding how employees choose behavior to fulfill their needs. Equity theory Goal-setting theory Expectancy theory

Equity Theory Equity Theory (Adams) Proposes that employees are motivated when their perceived inputs equal outputs. People compare their inputs (effort, experience, seniority, status, intelligence, etc.) and outputs (praise, recognition, pay, benefits, promotions, increased status, supervisor’s approval, etc.) to those of relevant others and conclude that they are either: Underrewarded Overrewarded Equitably rewarded

Goal-Setting Theory Goal-Setting Theory Proposes that achievable but difficult goals motivate employees, leading to higher levels of motivation and performance.

Expectancy Theory Expectancy Theory (Vroom) Proposes that employees are motivated when they believe they can accomplish a task and the rewards for doing so are worth the effort. Motivation = Expectancy × Valence Expectancy is the person’s perception of his or her ability to accomplish an objective. Valence is the value the person places on the outcome or reward for his or her performance.

Expectancy Theory (cont’d) Expectancy Theory Assumptions: Both internal factors (needs) and external factors (environment) affect behavior. Behavior is the individual’s decision. People have different needs, desires, and goals. People make behavior decisions based on their perception of the outcome.

Expectancy Theory (cont’d) Keys to Using Expectancy Theory Successfully: Clearly define objectives and the performance needed to achieve them. Tie performance to rewards. Be sure rewards have value to employees. Make sure employees believe that management will do what it says it will.

Join the Discussion Ethics & Social Responsibility Academic Standards How many hours outside of class, on average, do you and other students you know spend preparing for class each week? Are college professors today assigning students 2 hours of preparation for every hour in class? If not, why do you think they have dropped this standard? Are students who are essentially doing part-time work (that is, attending classes but doing little or no academic work outside of class) during college being prepared for a career after graduation (with a 40- to 60-hour work week)? Is it ethical and socially responsible for professors to drop standards and for colleges to award degrees for doing less work than students did 5, 10, or 20 years ago?

Reinforcement Theory Reinforcement Theory Proposes that through the consequences of their behavior, employees will be motivated to behave in predetermined ways. Stimulus Responding Behavior Consequences of Behavior (Reinforcement)

Types of Reinforcement Positive Reinforcement Encouraging continued behavior by offering attractive consequences (rewards) for desirable performance. Avoidance Reinforcement (Negative Reinforcement) Encouraging continued desirable behavior to avoid a negative consequence. Punishment Providing an negative consequence to decrease undesirable behavior. Extinction Discouraging undesirable behavior by withholding reinforcement when the behavior occurs.

Exhibit 11 –5 ● Types of Reinforcement

Schedules of Reinforcement Continuous Reinforcement Each and every desirable behavior is reinforced. Intermittent Reinforcement Time-based schedules Fixed interval Variable interval Output-based schedules Fixed ratio Variable ratio

Motivating with Reinforcement General Guidelines for Using Reinforcement: Make sure employees know what behavior is expected and reinforced. Select appropriate rewards. Select the appropriate reinforcement schedule. Do not reward mediocre or poor performance. Look for the positive and give praise regularly, rather than focusing on the negative and criticizing. Do things for your employees, instead of to them, and you will see productivity increases.

Join the Discussion Ethics & Social Responsibility Airlines Not using an airline ticket fully breaks the airline’s rules, not any law, so it’s not illegal. But is it ethical and socially responsible of travelers to do so? Is it ethical and socially responsible of airlines to charge more for less travel? Is it ethical and socially responsible to punish people who break the ticket rules?

Exhibit 11 –6 ● Giving Praise

Join the Discussion Ethics & Social Responsibility Using Reinforcement Theory Does reinforcement motivate you? Is reinforcement effective (does it serve to motivate) in today’s global economy? Is the use of reinforcement theory ethical and socially responsible or manipulative?

Exhibit 11 –7 ● The Motivation Process and the Motivation Theories The groups of theories are complementary; each refers to a different stage in the motivation process or answers a different question.

Do Motivation Theories Apply Globally? Cultural Differences in Motivation The intrinsic motivation provided by the satisfaction of higher-level needs tends to vary in different countries. The level of needs on which people focus varies. Individualistic societies tend to value individual accomplishment; collective societies tend to value group accomplishment and loyalty.

KEY TERMS motivation motivation process performance formula content motivation theories hierarchy of needs theory ERG theory two-factor theory acquired needs theory process motivation theories equity theory goal-setting theory expectancy theory reinforcement theory giving praise model

Chapter 11 - Motivating for High Performance

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Chapter 11 - Motivating for High Performance