Chapter 12 Smartbook Notes PDF

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12.1: Motivating for Performance - Motivation - the psychological processes that arouse and direct goal-directed behavior. - Must be inferred from one’s behavior. - Tie to engagement - Multiple contextual and personal factors create motivation - People have certain needs that motivate them to perform specific behaviors for which they receive rewards that feed back and satisfy the original need. -

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Extrinsic Rewards - the payoff, such as money, a person receives from others for performing a particular task. Intrinsic Rewards - the satisfaction, such as a feeling of accomplishment, a person receives from performing the particular task itself. Why is Motivation Important? - Join Your Organization - Stay with your organization - Show up for work at your organization - Be engaged while at your organization - Do extra for your organization The Four Major Perspectives On Motivation - Content Perspective - Process Perspective - Job Design Perspective - Reinforcement Perspective

12.2: Content Perspectives on Employee Motivation - Content Perspectives - aka Need-Based Perspectives, are theories that emphasize the needs that motivates people. - Content theorists ask, “What kind of needs motivate employees in the workplace?” - Needs - physiological or psychological deficiencies that arouse behavior - Can be strong or weak - Can vary over time and from place to place because they are influenced by environmental factors. - In addition to McGregor’s Theory X/Theory Y, content perspectives

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include 4 theories: - Maslow’s hierarchy of needs theory - McClelland’s acquired needs theory - Deci and Ryan’s self-determination theory - Herzberg’s two-factor theory Hierarchy of Needs Theory - which proposes that people are motivated by five levels of needs: - Physiological need - most basic human physical need - Need for food, clothing, shelter, comfort, self-preservation. - Workplace: wage - Safety Need - Need for physical safety, emotional security, avoidance of violence. - Workplace example: health insurance, job security, work safety rules, pension plans satisfy this need - Love Need - Need for love, friendship, affection - Workplace example: office parties, company softball teams, management retreats - Esteem Need - Need for self-respect, status, reputation, recognition, self-confidence. - Workplace example: bonuses, promotions, awards - Self-Actualization Need - the highest level need - Need for self-fulfillment: increasing competence, using abilities to the fullest. - Workplace example: sabbatical leave to further personal growth. The Five Levels of Needs - Needs are never completely satisfied. - Our actions are aimed at fulfilling the deprived needs, the needs that remain unsatisfied at any point in time. - Once you have achieved safety (security), which is the second most basic need, you will then seek to fulfill the third most basic need-love(belongingness). Using the Hierarchy of Needs Theory to Motivate Employees - Research does not clearly support Maslow’s theory, although it remains popular among managers. - Maslow’s contribution showed that workers have needs beyond that of just earning a paycheck. - To the extent the organization permits, managers should first try to meet employees’ level 1 and level 2 needs, of course, so that employees won’t be preoccupied with them. Acquired Needs Theory - states that three needs - achievement, affiliation, and power are major motives determining people’s behavior in the workplace - The Three Needs - Need for Achievement - The desire to excel, to do something better or more efficiently, to

solve problems, to achieve excellence in challenging tasks. People who are motivated by the need for achievement prefer working on challenging, but not impossible, tasks or projects. - They like situations in which good performance relies on effort and ability rather than luck, and they like to be rewarded for their efforts. High achievers also want to receive a fair and balanced amount of positive and negative feedback. - Need for Affiliation - The desire for friendly and warm relations with other people. - May not be the most efficient manager because at times you will have to make decisions that will make people resent you. - You will tend to prefer work, such as sales, that provides for personal relationships and social approval. - Need for Power - This is the desire to be responsible for other people, influence their behavior or to control them. - Enjoy being in control of people and events and being recognized for this responsibility - Two forms of the need for power - Personal Power - expressed in the desired to dominate others, and involves manipulating people for one’s own gratification; negative. - Institutional Power - expressed in the need to solve problems that further organizational goals; positive. Self-Determination Theory - assumes that people are driven to try to grow and attain fulfillment, with their behavior and well-being influenced by three innate needs. - Focuses primarily on intrinsic motivation and rewards (such as feeling independent). Intrinsic motivation is longer lasting than extrinsic motivation and has a more positive impact on task performance. - The Three Innate Needs - Competence - A sense of mastery - People need to feel qualified, knowledgeable, and capable of completing a goal or task and to learn different skills. - Managers can provide tangible resources, time, contacts, and coaching to improve employee competence, making sure that employees have the knowledge and information they need to perform their jobs. - Autonomy - People want to feel independent and able to influence they environment - People need to feel they have freedom and the discretion to determine what they want to do and how they want to do it. - Managers can develop trust with their employees and empower them by delegating meaningful tasks to them -

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Relatedness - People want to feel connected to other people - People need to feel a sense of belonging, of attachment to others. - Some companies use camaraderie to foster relatedness. Two-Factor Theory - which proposed that work satisfaction and dissatisfaction arise from two different factors - work satisfaction from motivating factors and work dissatisfaction from hygiene factors. - Hygiene Factors - factors associated with job dissatisfaction - such as salary, working conditions, interpersonal relationships, and company policy - all of which affect the jobcontext in which people work; lower-level needs. - Motivating Factors - factors associated with job satisfaction - such as achievement, recognition, responsibility, and advancement - all of which affect the job content or the rewards of work performance; higher-level needs. - Basic lesson of Herzberg’s research is that you should first eliminate hygiene factors, making sure that working conditions, pay levels, and company policies are reasonable. - Then you should concentrate on spurring motivation by providing opportunities for achievement, recognition, responsibility, and personal growth.

12.3: Process Perspectives on Employee Motivation - Process Perspectives - concerns with the thought processes by which people decide how to act. - How employees choose behavior to meet their needs - Equity/Justice Theory - a model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships. - The Key Elements in Equity Theory - Inputs - what do you think you’re putting into the job? - Includes: time, effort, training, experience, intelligence, creativity, seniority, status, and so on. - Outputs or Rewards - what do you think you’re getting out of the job? - Includes: pay, benefits, praise, recognition, bonuses, promotion, status perquisites. - Comparison - how do you think your ratio of inputs and rewards compares with those of others? - People compare the ratio of their own outcomes to inputs against the ratio of someone else’s inputs and outputs. - Employees who feel they are being underrewarded will respond to the perceived inequity in one or more negative ways: - Reducing their inputs - Trying to change the outputs or rewards they receive - Distorting the inequity - Changing the object of comparison - Leaving the situation

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Employees who think they are treated fairly are more likely to support organizational change, more apt to cooperate in group settings, and less apt to turn to arbitration and the courts to remedy real or imagined wrongs. - Elements of Organizational Justice Theory - Distributive Justice - reflects the perceived fairness of how resources and rewards are distributed or allocated. - Procedural Justice - the perceived fairness of the process and procedures used to make allocation decisions. - Interactional Justice - relates to the quality of the interpersonal treatment people receive when procedures are implemented. - 5 lessons from equity justice theory - Employee perceptions are what count - No matter how fair management thinks the organization’s policies, procedures, and reward system are, each employee’s perception of the equity of those factors is what counts. - Employees want a voice in decisions that affect them - Managers benefit by allowing employees to participate in making decisions about important work outcomes. - Voice - employees’ upward expression of challenging but constructive opinions, concerns, or ideas on work-related issues to their managers. - IBM institute for Business Value survey results shows that 83% of employees desired a voice in improving customer issues. - Employees should be given an appeals process - Employees who are given the opportunity to appeal decisions that affect their welfare enhance the perceptions of distributive and procedural justice. - Leader Behavior Matters - Employees’ perceptions of justice are strongly influenced by the leadership behavior exhibited by their managers. - A climate for justice makes a difference - Managers need to pay attention to the organization's climate for justice because 38 research studies demonstrated that an organization’s climate for justice was significantly related to team performance. Expectancy Theory - boils down to deciding how much effort to exert in a specific task situation. - Based on a 2 stage sequence of expectations; moving from effort to performance and then from performance to outcomes. - The Three Elements - Expectancy - the belief that a particular level of effort will lead to a particular level of performance. This is called the Effort-to-Performance Expectancy - Instrumentality - the expectation that successful performance of the task

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will lead to the outcome desired. This is called the Performance-toReward Expectancy - Valence - the value of the importance a worker assigns to a possible outcome or reward. - When attempting to motivate employees, managers should ask the following questions: - What rewards do your employees value? - As a manager, you need to get to know your employees and determine what rewards they value, such as pay raise or recognition. - What are the job objectives and the performance level you desire？ - You need to clearly define the performance objectives and determine what performance level or behavior you want so that you can tell your employees what they need to do to attain the rewards. - Are the rewards linked to performance? - You want to reward high performance. Thus employees must be aware that X level of performance within Y period of time will result in Z kinds of rewards. - Do employees believe you will deliver the right rewards for the right performance? - Your credibility is on the line here. Your employees must believe that you have the power, the ability, and the will to give them the rewards you promised. Goal-Setting Theory - suggests that employees can be motivated by goals that are specific and challenging but achievable. - Only useful only if people understand and accept the goals. - The four motivational mechanisms of goal-setting theory - It directs your attention - It regulates the effort expended - It increases your persistence - It fosters use of strategies and action plans - Stretch Goals - goals beyond what they actually expected to achieve. - Forces people out of their comfort zones to achieve more, building their confidence when they succeed, insulating the company against future setbacks, and accepting the challenge of higher performance standards. - This type of goal has drawbacks - Stretch goals can demotivate employees because they set aims that seem unattainable. - They can encourage unethical behaviors as employees try to reach the goals in whatever way they can - They can lead companies to take unnecessary risks. - Two Types of Goal Orientations

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Learning Goal Orientation - sees goals as a way of developing competence through the acquisition of new skills - People with a strong learning goal orientation appreciate opportunities to enhance their skills. - Such as through training, performance feedback, and the assignment of challenging tasks - Rally the better of these two types for jobs that call for creativity, willingness to embrace new ideas or adapt to new environments, making effective use of performance feedback, and taking a proactive, problem-solving approach. - Performance Goal Orientation - sees them as a way of demonstrating and validating a competence we already have by seeking the approval of others. - People with a strong performance goal orientation may be less willing to take on new challenges for fear of failure and may set lower goals for themselves to avoid making themselves vulnerable to criticism. - In a study the performance goal orientation was found to be either unrelated or negatively related to performance on the job. Some practical results of goal-setting theory - Goal should be specific - Goals that are specific and difficult lead to higher performance than general goals like do your best or improve performance. - Goals need to be specific - usually meaning quantitative, as in boost your revenues 25% and cut absenteeism by 10%. - Certain conditions are necessary for goal setting to work - People must have the ability and resources needed to achieve the goal, and they need to be committed to the goal. - Goal commitment can be fostered by allowing employees to participate in the process of establishing goals. - Goals should be linked to action plans - An action plan outlines the activities or tasks that need to be accomplished in order to obtain a goal and reminds us of what we should be working on. - Performance Feedback and Participation in deciding how to achieve goals are necessary but not sufficient for goal setting to work - Feedback and participation enhance performance only when they lead employees to set and commit to a specific, difficult goal.

12.4: Job Design Perspective on Motivation - Job Design - the division of an organization’s work among its employees and the application of motivational theories to jobs to increase satisfaction and performance. - Scientific Management - the process of reducing the number of tasks a worker performs.

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Fitting jobs to people is based on the assumption that people are underutilized at work and that they want more variety, challenges, and responsibility. 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. - Horizontal Loading - giving employees additional tasks of similar difficulty - Vertical Loading - giving employees more responsibility Job Characteristics Model - consists of 5 core job characteristics that affect 3 critical psychological states of an employee that in turn affect work outcomes - employee’s motivation, performance, and satisfaction. - 5 Job characteristics - Skill Variety - how many different skills does your job require? - Task Identity - how many different tasks are required to complete the work? - Task Significance - how many other people are affected by your job? - Autonomy - how many discretion does your job give you? - Feedback - how much do you find out how well you’re doing? - These 5 characteristics affect a worker’s motivation because they affect 3 critical psychological states: meaningfulness of work, responsibility for results, and knowledge of results. - These positive psychological states fuel high motivation, high performance, high satisfaction, and low absenteeism and turnover. - Research shows that meaningfulness of work is the most important psychological state. - Contingency Factors - refers to the degree to which a person wants personal and psychological development. - Job design works when employees are motivated; to be so, they must have 3 attributes: necessary knowledge and skill, desire for personal growth, and context satisfaction. - Applying the job characteristics model - Diagnose the work environment to see whether a problem exists - Job Diagnostic Survey - this will indicate whether an individual’s so-called motivating potential score - the amount of internal work motivation associated with a specific job - is high or low. - Developed by Hackman and Oldham - Determine whether job redesign is appropriate - If a persons’ MPS is low, an attempt should be made to determine which of the core job characteristics is causing the problem. - Then decide whether job redesign is appropriate for a given group of employees. - Consider how to redesign the job - Increase those core job characteristics that are lower than national norms.

12.5: Reinforcement Perspectives on Motivation - Law of Effect - behavior with favorable consequences tends to be repeated, while behavior with unfavorable consequences tends to disappear. - Reinforcement Theory - which 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. - The use of reinforcement theory to change human behavior is called behavior Modification. - The Four Types of Reinforcement - Reinforcement - anything that causes a given behavior to be repeated or inhibited. - Reward only desirable behavior - Give rewards as soon as possible - Be clear about what behavior is desired - Have different rewards and recognize individual differences - Positive Reinforcement - the use of positive consequences to strengthen a particular behavior. - Negative Reinforcement - the process of strengthening a behavior by withdrawing something negative. - Extinction - the weakening of behavior by ignoring it or making sure it is not reinforced. - Punishment - the process of weakening behavior by presenting something negative or withdrawing something positive. - 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 12.6: Using Compensation, Nonmonetary Incentives, and other Rewards to Motivate: In Search of the Positive Work Environment - Most workers rate having a caring boss higher than they value monetary benefits, according to several surveys. - 50% of U.S. adults showed that they are willing to take a 10% pay cut to work at a job they found meaningful. - None of 2015’s highest-paid CEOs ran one of the 10 best-performing companies. - Only 3 of those executives headed a firm ranked among the top 10 percent in total shareholder return. - For incentive plans to work, certain criteria are advisabe, as follows: rewards must be linked to performance and be measurable. These rewards must satisfy individual needs. The rewards must be agreed on by manager and employees. The rewards must be believable and achievable by employees. - Pay for Performance - aka Merit Pay; based pay on one’s results - Piece Rate - pay based on how much output an employee produces

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