MGMT4 - (Part Four Leading) PDF

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Motivation

LEARNING OUTCOMES

1 Explain the basics of motivation, including needs (or ‘content’) theories of motivation, and understand their limitations.

WHAT IS MOTIVATION?

2 Use equity theory to explain how employees’ perceptions of fairness affect motivation.

3 Use expectancy theory to describe how workers’ expectations about rewards influence motivation.

4 Explain how reinforcement theory works and how it can be used to motivate.

5 Describe the components of goal setting theory and how managers can use them to motivate workers.

6 Discuss how the entire motivation model

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can be used to motivate workers.

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Throughout this APPLY E chapter the MindTap icon indicates an opportunity to go online and access videos, audio, quizzes and more. The highlighted text above the icon identifies the chapter folder in which you can find it.

What makes people happiest, most productive and most willing to put in efforts at work? Is it money, benefits, opportunities for growth, interesting work, being part of a team of good people or something else altogether? If people want different things, how can an organisation keep everyone motivated? It takes insight and hard work to motivate workers to join the organisation, perform well and stay on. Indeed, when they are surveyed about the biggest challenges facing them in their work, managers are inclined to rank ‘motivating employees’ among their top two or three problems.1 So what is motivation? Motivation motivation the set of is the set of forces that initiates, directs forces that initiates, directs and makes people persist and makes people persist in their efforts in their efforts to accomplish to accomplish a goal.2 In this definition, a goal initiation of effort is concerned with the choices that people make about how much effort to put into their jobs (‘Do I really push myself for the next round of performance appraisals or should I just do a decent job?’). Direction of effort is concerned with the choices that people make in deciding where to put effort in their jobs (‘Should I start contacting all of last year’s clients again, or should I learn this new computer system?’). Persistence of effort is concerned with the choices that people make about how long they will put effort into their jobs before reducing or eliminating those efforts (‘I’m only halfway through the project, and I’m exhausted. Should I struggle on to the end, or just call it quits?’). Initiation, direction and persistence are at the heart of motivation. Initiation + Direction + Persistence → Motivation After reading the next section, you should be able to explain the basics of motivation.

Williams, C, McWilliams, A, & Lawrence, R 2019, MGMT4, Cengage, Melbourne. Available from: ProQuest Ebook Central. [8 September 2020]. Created from swin on 2020-09-08 01:39:26.

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In practice, it’s almost impossible to talk about work motivation without mentioning work performance. Not surprisingly, managers often assume motivation to be the only determinant of performance, saying things such as ‘Your performance was really terrible last quarter. What’s the matter? Aren’t you as motivated as you used to be?’ In fact, motivation is just one of three primary determinants of job performance. In industrial psychology, job performance is frequently represented by this equation: Job performance = Motivation × Ability × Situational constraints

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Get started with the media quiz: LivingSocial Escapes: Motivating Employees

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What makes a person train for years, struggle through injuries and form-slumps, and then put themselves through the pain of running a 42 kilometre marathon? What makes an ‘ordinary’ team member put in extraordinary efforts, working longer and working harder than other members of the team? The answer lies in their motivation. Let’s learn more about motivation by building a basic model of motivation out of: ● effort and performance ● need satisfaction ● extrinsic and intrinsic rewards. This is followed by a discussion A PPLY Get an on how to motivate people with overview of employee this basic model of motivation. motivation techniques V IDE

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BASICS OF MOTIVATION

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EFFORT AND PERFORMANCE When most people think of work motivation, they think that working hard (effort) should lead to a good job (performance). Figure 12.1 shows a basic model of work motivation and performance, displaying this process.

Effort • Initiation • Direction

Performance

• Persistence

FIGURE 12.1

A basic model of work motivation and performance

In this formula, job performance is how well someone performs the requirements of the job. Motivation, as defined above, is effort: the degree to which someone works hard to do the job well. Ability is the degree to which workers possess the knowledge, skills and talent needed to do a job well. Situational constraints are factors beyond the control of individual employees, such as the tools, equipment, policies and resources that have an effect on job performance. Since job performance (as seen in the equation above) is motivation multiplied by ability, multiplied by situational constraints, then job performance will suffer if any one of these components is weak. Does this mean that motivation doesn’t matter? No, not at all. It just means that all the motivation in the world won’t translate into high performance if workers have little ability or have high situational constraints. Even though we will spend this chapter developing a model of work motivation, it is important to remember that ability and situational constraints will strongly affect job performance as well.

NEED SATISFACTION In Figure 12.1, we started with a very basic model of motivation in which effort leads to job performance. However, managers want to know ‘What leads to effort?’ Determining employee needs is the first step in answering that question. N eed s are the p hysi cal o r need a physical or psychological requirements that must be psychological requirement met to ensure survival and wellbeing.3 As that must be met to ensure survival and wellbeing shown on the left side of Figure 12.2, a person’s unmet need creates an uncomfortable, internal state of tension that must be resolved. For example, if you normally skip breakfast, but then have to work through lunch, the chances are you’ll be so hungry by late afternoon that the only thing you’ll be motivated to do is find something to eat. So, according to needs theories, people are motivated by unmet needs. But once a need is met, it no longer motivates. When this occurs, people become satisfied, as shown on the right side of Figure 12.2. Note: throughout the chapter, as we build on the basic model shown in Figure 12.1, the parts of the model that we’ve already discussed will appear shaded in green.You will notice

Williams, C, McWilliams, A, & Lawrence, R 2019, MGMT4, Cengage, Melbourne. Available from: ProQuest Ebook Central. [8 September 2020]. Created from swin on 2020-09-08 01:39:26.

CHAPTER 12 Motivation

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Effort Unsatisfied need

Tension

Energised to take action

• Initiation • Direction

Performance

Satisfaction

• Persistence

As shown on the left side of this exhibit, a person’s unsatisfied need creates an uncomfortable, internal state of tension that must be resolved. So, according to needs theories, people are motivated by unmet needs. But once a need is met, it no longer motivates. When this occurs, people become satisfied, as shown on the right side of the exhibit. FIGURE Adding need satisfaction to the model 12.2

Maslow’s hierarchy

Alderfer’s ERG

Higher-order

Self-actualisation Esteem Belongingness

Growth Relatedness

Lower-order

Safety Physiological

Existence

FIGURE 12.3

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Power Achievement Affiliation

Needs classification of different theories

that in Figure 12.2 the components of the ‘effort performance’ part of the model are shown with a green background, denoting that we’ve already discussed those. When we add new parts to the model, they will have an orange background. In Figure 12.2, we added ‘need satisfaction’ to the model; the need–satisfaction components of ‘unsatisfied need’, ‘tension’, ‘energised to take action’ and ‘satisfaction’ are shown with an orange background. This shading convention should make it easier to understand the work motivation model as we add to it in each section of the chapter. Since people are motivated by unmet needs, managers must learn what those unmet needs are and address them. This is not always a straightforward task, however, because different needs theories suggest different needs categories. Consider three well-known needs theories. American psychologist Abraham Maslow developed his Hierarchy of Needs theory in the 1940s and 1950s. His hierarchy of needs suggests that people are motivated by physiological (food and water), safety (physical and economic), belongingness (friendship, love and social interaction), esteem (achievement and recognition) and self-actualisation (realising your full potential) needs.4 Alderfer’s ERG Theory collapses Maslow’s five needs into three: existence (safety and physiological needs), relatedness (belongingness) and growth (esteem and self-actualisation).5 McClelland’s Learned Needs Theory suggests that people are motivated by the need for affiliation (to be liked and accepted), the need for achievement (to accomplish challenging goals) or the need for power (to influence others).6 Things become even more complicated when we consider the different predictions made by these theories. According to Maslow, needs are arranged in a hierarchy

from low (physiological) to high (self-actualisation). Within this hierarchy, people are motivated by their lowest unsatisfied need. As each need is met, they work their way up the hierarchy from physiological to self-actualisation needs. This is called the ‘satisfaction/progression’ principle. By contrast, Alderfer says that people can be motivated by more than one need at a time. Furthermore, he suggests that people are just as likely to move down the needs hierarchy as up, particularly when they are unable to achieve satisfaction at the next higher need level (a ‘frustration/ regression’ principle, also contrary to Maslow). McClelland argues that the degree to which particular needs motivate varies tremendously from person to person, with some people being motivated primarily by achievement and others by power or affiliation. Moreover, McClelland says that needs are learned, not innate. That is, from earliest childhood, people are learning (or ‘acquiring’) needs from 7 their observation of their environment and social contacts. For instance, some classic studies showed that children whose parents owned a small business or worked in a managerial position were much more likely to have a high need for achievement.8 (See Figure 12.3 for a summary of the classification of different theories.) So, with three different sets of needs and three very different ideas about how needs motivate, how do we provide a practical answer to managers who just want to know ‘What leads to effort?’ Fortunately, the research evidence tends to simplify things a bit. To start, studies indicate that there are two basic kinds of needs categories.9 As you would expect, lower-order needs are concerned with safety and with physiological and existence requirements, whereas higher-order needs are concerned with relationships

Williams, C, McWilliams, A, & Lawrence, R 2019, MGMT4, Cengage, Melbourne. Available from: ProQuest Ebook Central. [8 September 2020]. Created from PART swin onFOUR 2020-09-08 01:39:26. Leading

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Mcclelland’s learned needs

thought that there is little evidence for ranking of needs, or indeed, for a hierarchy at all.12 Shutterstock.com/Aliona Ursu

(belongingness, relatedness and affiliation), challenges and accomplishments (esteem, self-actualisation, growth and achievement) and influence (power). Studies generally show that higher-order needs will not motivate people as long as lower-order needs remain unsatisfied.10 For example, imagine that you graduated from university six months ago and are still looking for your first job. With money running short (you’re probably living on your credit cards) and the possibility of having to move back in with your parents looming (if this doesn’t motivate you, what will?), your basic needs for food, shelter and security drive your thoughts, behaviour and choices at this point. But once you land that job, find a great place (of your own!) to live and put some money in the bank, these basic needs should decrease in importance as you begin to think about making new friends and taking on challenging work assignments. In fact, once lower-order needs are satisfied, it’s difficult for managers to predict which higher-order needs will motivate behaviour.11 Some people will be motivated by affiliation, while others will be motivated by growth or esteem. Also, the relative importance of the various needs may change over time, but not necessarily in any predictable pattern. So, what leads to effort? In part, needs do. It is important for students and managers to have a basic understanding of needs theories. This is because they are part of the vocabulary of managers, and have been part of most courses of study in management and marketing for many years. Maslow’s hierarchy of needs, in particular, seems to be the most popular, best known and most remembered theory of motivation among practising managers, possibly because of its attractive (and simple) triangle or pyramid diagram. Nevertheless, Maslow’s intuitively appealing hierarchy appears to have little supporting evidence, and to be impossible to demonstrate experimentally. In modern psychology, it is

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Maslow’s Hierarchy of Needs

So, if needs only tell part of the motivation story, we will need to look at the role of rewards, and then, later in the chapter, at ‘process’ theories of motivation such as equity theory, expectancy theory and goal setting theory, which seem to have better predictive value.

EXTRINSIC AND INTRINSIC REWARDS No discussion of motivation would be complete without considering rewards. Let’s add two kinds of rewards, extrinsic and intrinsic, to the model, as shown in Figure 12.4.13 Extrinsic rewards are tangible and extrinsic reward visible to others and are given to a reward that is tangible, employees contingent on the performance visible to others and given to employees contingent of specific tasks or behaviours.14 External on the performance of agents (managers, for example) determine specific tasks or behaviours

Intrinsic rewards

Copyright © 2019. Cengage. All rights reserved.

Effort Unsatisfied need

• Initiation Tension

Energised to take action

• Direction

Satisfaction

Performance

• Persistence Extrinsic rewards

Performing a job well can be rewarding intrinsically (the job itself is fun, challenging or interesting) or extrinsically (as you receive better pay or promotions, etc.). Intrinsic and extrinsic rewards lead to satisfaction of various needs. FIGURE Adding rewards to the model 12.4

Williams, C, McWilliams, A, & Lawrence, R 2019, MGMT4, Cengage, Melbourne. Available from: ProQuest Ebook Central. [8 September 2020]. Created from swin on 2020-09-08 01:39:26.

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Copyright © 2019. Cengage. All rights reserved.

and control the distribution, frequency and amount of extrinsic rewards, such as pay, company stock, benefits and promotions. Performance bonuses, paid when a worker or work group achieves a performance target, are a common form of extrinsic reward. The aim of bonuses is to help to increase employee performance and boost morale. Australia-based QBE Insurance Group, one of the world’s top 20 insurance companies, with over 14 000 employees, prides itself on its employees ‘being rewarded for their performance’. In 2018, QBE was reported to be paying its employees an average of more than $8000 each in annual bonuses on top of salaries.15 Although bonuses can sometimes be dismissed as ‘just extrinsic rewards’, they can also play an important role in feedback to employees. Bonuses and awards do indeed provide extrinsic financial rewards, but they can also be an important source of positive feedback to recipients, telling them that they are doing the right thing.16 Why do companies need extrinsic rewards? To get people to do things they wouldn’t otherwise do. Companies use extrinsic rewards to motivate people to perform four basic behaviours: join the organisation, regularly attend their jobs, perform their jobs well and stay with the organisation.17 Think about it. Would you show up to work every day to do the best possible job that you could just out of the goodness of your heart? Very few people would. Intrinsic rewards are the natural intrinsic reward a natural reward rewards associated with performing a task associated with or activity for its own sake. For example, performing a task or besides the external rewards management activity for its own sake offers for doing something well, employees often find the activities or tasks they perform interesting and enjoyable. Examples of intrinsic rewards include a sense of accomplishment or achievement, a feeling of responsibility, the chance to learn something new or interact with others, or simply the fun that comes from performing an interesting, challenging and engaging task. Video games have grown rapidly in popularity. It has been estimated that Australia alone has about 9.5 million regular gamers, and that the size of the Australian video games industry, in financial terms, is over $3 billion per year.18 The global video games industry was expecting revenues of $US138 billion in 2018.19 People around the world spend millions of hours every week on video games. Why? Because they’re interesting, challenging and engaging (i.e. intrinsically rewarding).20 Companies are now beginning to apply ‘gamification’ – meaning levels, points, time limits and friendly competition – to organisational tasks like training, data entry, sales leads, carpooling, etc. Gabe Zichermann, who organises the Gamification Summit conference, says, ‘The reason why gamification is so hot is that most people’s jobs are really freaking boring’.21 Does it work? Well, if you play Guitar

Hero you’re more likely to actually learn to play a real

guitar. Likewise, at work, people trained via video games learn more information, remember it longer and progress to higher skill levels. Which types of rewards are most important to workers in general? Experienced managers suggest that both extrinsic and intrinsic rewards are important. According to Jason White, the National Leader, People Services for accounting firm KPMG Australia, ‘The assumption that cash-based rewards are the only thing that matter to employees is being challenged by more contemporary views around the intrinsic motivators that people have around work.’ Examples could be flexibility, education, professional development or technology training. ‘Some people might want additional leave, or to structure things so they can...