1. Learning Objectives
 L01: Identify the kinds of behaviors
managers need to motivate people
 L02: List principles for setting goals that
motivate employees
 L03: Summarize how to reward good
performance effectively
 L04: Describe the key beliefs that affect
people’s motivation
10-1

2. Learning Objectives
 L05: Discuss ways in which people’s
individual needs affect their behavior.
 L06: Define ways to create jobs that
motivate.
 L07: Summarize how people assess
fairness and how to achieve fairness.
 L08: Identify causes and consequences
of a satisfied workforce.
10-2

3. 10-3

4. Motivating for Performance
 Motivation – forces that energize, direct and
sustain a person’s efforts.
 Organizations want to motivate people to:
Join the organization
Remain in the organization
Come to work regularly
Work hard to achieve high output and high quality
Exhibit good citizenship by being committed and
performing above and beyond the call of duty to help
the company
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5. Goal Setting Theory
 Proposes that people have conscious
goals that energize them and direct their
thoughts and behaviors toward a
particular end
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6. Well-crafted goals are highly
motivating
 Meaningful
 Acceptable
 Challenging but Attainable
 Specific and quantifiable
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7. Stretch Goals
 Targets that are exceptionally
demanding, and that some people would
never even think of.
Vertical stretch goals are aligned with
current activities including productivity and
financial results
Horizontal stretch goals involve people’s
professional development, such as
attempting and learning new, difficult things
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8. Test Your Knowledge
 Describe the characteristics of goals that
most effectively motivate people.
10-8

9. Reinforcing Performance
 Law of effect: A law formulated by Edward
Thorndike in 1911 stating that behavior that
is followed by positive consequences will
likely be repeated
 Reinforcers: Positive consequences that
motivate behavior
 Organizational behavior modification (OB
mod) – The application of reinforcement
theory in organizational settings
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10. The Consequences of Behavior
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11. Key Consequences of Behavior
1. Positive reinforcement - applying a
consequence that increases the likelihood that
the person will repeat the behavior that led to
it.
2. Negative reinforcement - removing or
withholding an undesirable consequence.
3. Punishment - administering an aversive
consequence.
4. Extinction - withdrawing or failing to provide a
reinforcing consequence.
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12. What do you want to reinforce?
 Solid solutions instead of quick fixes
 Risk taking instead of risk avoiding
 Applied creativity instead of mindless
conformity
 Decision action instead of paralysis of
analysis
 Smart work instead of busywork
 Simplification instead of needless
complication
10-12

13. What do you want to reinforce?
 Quietly effective behavior instead of
squeaky wheels
 Quality work instead of fast work
 Loyalty instead of turnover
 Working together instead of working
against
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14. Rewards
 Should support the firm’s strategy
 Should relate people’s performance in
relation to strategic objectives
 Can be nonmonetary (intellectual
challenge, greater responsibility,
autonomy, recognition, flexible benefits,
and greater influence over decisions)
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15. Should you punish mistakes?
Appropriate Inappropriate
Violation of law, ethical When poor
standards, important performance is not
safety rules the individual’s fault
When employees When managers take
perform like a out their frustrations
slacker on the wrong people
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16. How to Manage Mistakes
 Recognize that everyone makes mistakes and
that mistakes can be dealt with constructively by
discussing and learning from them
 Praise people who deliver based news to their
bosses
 Don’t punish, unsuccessful good-faith efforts
 Encourage people to try new things and don’t
punish them if what they try doesn’t work out.
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17. Feedback should…
 Provide useful feedback
 Pay attention to your employee’s
request for feedback
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18. Where can you get feedback from?
 Customers
 Work statistics
 Production data
 Supervisors
 Self assessment
 Peers
10-18

19. Test Your Knowledge
Identify four examples of people
advertently
reinforcing the wrong behaviors, or
punishing or extinguishing good behaviors
10-19

20. Performance-related Beliefs
 Expectancy theory: proposes that
people will behave based on their
perceived likelihood that their effort will
lead to a certain outcome and on how
highly they value that outcome.
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21. Expectancy Theory
 Three events
Effort
Performance
Outcome
 Beliefs
Expectancy – employees’ perception of the likelihood
that their efforts will enable them to attain their
performance goals
Instrumentality – the perceived likelihood that
performance will be followed by a particular outcome
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22. Expectancy Theory
10-22

23. Managerial Implications of
Expectancy Theory
1. Increase expectancies - provide a work
environment that facilitates good performance
and set realistically attainable performance
goals
2. Identify positively valent outcomes –
Understand want people want to get out of
work
3. Make performance instrumental toward
positive outcomes – Make sure that good
performance is followed by personal
recognition and praise, favorable performance
reviewers, pay increases, and other positive
results
10-23

24. Test Your Knowledge
Discuss the managerial implications of
expectancy theory. Relate them
specifically
to expectancy theory.
10-24

25. Maslow’s Need Hierarchy
10-25

26. Maslow’s Need Hierarchy
1. Physiological – food, water, sex, and shelter
2. Safety – protection against threat and
deprivation
3. Social – friendship, affection, belonging, and
love
4. Ego – independence, achievement, freedom,
status, recognition, and self-esteem
5. Self-actualization – realizing one’s full
potential, becoming everything one is capable
of being
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27. Alderfer’s ERG Theory
 Proposes that people have three basic sets
of needs that can operate simultaneously
Existence: material and physiological desires
Relatedness: relationships with other people
Growth: full utilization of personal capacities and
developing new capacities
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28. McClelland’s Theory
 Need for Achievement – strong
orientation toward accomplishment and
an obsession with success and goal
attainment
 Need for Affiliation - strong desire to
be liked by other people
 Need for Power - desire to influence or
control other people
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29. Test Your Knowledge
A difference between Maslow's Need Hierarchy and
Alderfer's ERG Theory is that
A) ERG theory states that various needs operate
simultaneously.
B) Maslow's hierarchy has more scientific validity.
C) Maslow's hierarchy reminds managers that even if
one need seems to motivate people, other needs may
still need attention.
D) ERG theory focuses on five levels of need.
E) only Maslow's theory serves to remind managers of
the types of reinforcers that can be used to motivate
people. 10-29

30. Types of Motivation
 Extrinsic motivation – rewards given to
a person by the boss, the company or
some other person
 Intrinsic motivation – rewards a worker
derives directly from performing the job
itself
10-30

31. Designing Motivating Jobs
 Job rotation: changing from one routine
task to another to alleviate boredom
 Job enlargement: Giving people
additional tasks at the same time to
alleviate boredom
 Job enrichment: Changing a task to
make it inherently more rewarding,
motivating, and satisfying
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32. Herzberg’s two-factor theory
 Proposed two broad categories of factors
that affect people working on their jobs:
Hygiene factors: characteristics of the workplace,
such as company policies, working conditions,
pay, and supervision, that can make people
dissatisfied.
Motivators: Factors that make a job more
motivating, such as additional job responsibilities,
opportunities for personal growth and recognition,
and feelings of achievement.
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33. Hackman and Oldham Model of Job
Enrichment
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34. Hackman and Oldham Model
 Three critical psychological states
They believe they are doing something
meaningful because their work is important to
other people
They feel personally responsible for how the work
turns out.
They learn how well they performed their jobs.
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35. Hackman and Oldham Model
Five core job dimensions
1. Skill variety – different job activities involving
several skills and talents
2. Task identity – the completion of a whole
identifiable piece of work
3. Task significance – an important, positive
impact on the lives of others
4. Autonomy – independence and discretion in
making decisions
5. Feedback – independence and discretion in
making decisions
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36. What is empowerment?
The process of sharing power with
employees, thereby enhancing their
confidence in their ability to perform their
jobs and their belief that they are
influential contributors to the
organization.
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37. Why empowerment encourages
employees?
 They perceive meaning in their work; their
jobs with skill
 They feel competent, or capable of
performing their jobs with skill
 They have a sense of self-determination, of
having some choice in regard to the tasks,
methods, and pace of their work
 They have an impact – that is, they have
some influence over important outcomes
10-37

38. Test Your Knowledge
Compare and contrast job enlargement,
job enrichment, and job rotation. Give
an example of each.
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39. Equity Theory
 Proposes that people assess how fairly
they have been treated according to two
key factors outcomes and inputs
1. Outcomes – various things the
person receives on the job
2. Inputs – contributions the person
makes to the organization
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40. Equity Equation
Their own Outcomes/Inputs
Versus
Others’ Outcomes/Inputs
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41. How people restore equity
 Reducing their inputs
 Increase their outcomes
 Decrease others’ outcomes
 Increase others’ inputs
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42. Procedural Justice
Using a fair process in decision making
and making sure others know that the
process was as fair as possible.
10-42

43. Test Your Knowledge
Describe a time when you felt unfairly
treated and explain why. How did you
respond to the inequity? What other
options might you have had?
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44. Job Satisfaction
 Job dissatisfaction leads to: higher
turnover, higher absenteeism, less good
citizenship among employees, etc.
 Dissatisfied workers negatively impact
organizations, especially relationship-
oriented service organizations
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45. Eight categories of needs addressed
by QWL
1. Adequate and fair compensation.
2. A safe and healthy environment.
3. Jobs that develop human capacities.
4. A chance for personal growth and security.
5. A social environment that fosters personal
identity, freedom from prejudices, a sense of
community, and upward mobility.
6. Constitutionalism, or the rights of personal
privacy, dissent, and due process.
7. A work role that minimizes infringement on
personal leisure and family needs.
8. Socially responsible organizational actions.
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46. Quality of work life programs
Create workplace that enhances employee
well-being and satisfaction
Satisfy the full range of employee needs
10-46

47. Psychological Contract
 A set of perceptions of what employees
owe their employers and what their
employers owe them.
10-47

48. Test Your Knowledge
 Identify the cause and consequences of
a satisfied workforce.
10-48

49. YOU should be able to
 L01: Identify the kinds of behaviors
managers need to motivate people
 L02: List principles for setting goals that
motivate employees
 L03: Summarize how to reward good
performance effectively
 L04: Describe the key beliefs that affect
people’s motivation
10-49

50. YOU should be able to
 L05: Discuss ways in which people’s
individual needs affect their behavior.
 L06: Define ways to create jobs that
motivate.
 L07: Summarize how people assess
fairness and how to achieve fairness.
 L08: Identify causes and consequences
of a satisfied workforce.
10-50