Chapter 6 Work Motivation

Chapter 6Work Motivation Michael A. Hitt C. Chet Miller Adrienne Colella Slides by Ralph R. Braithwaite

W.L. Gore & Associates – Four Guiding Principles Wilbert Gore Exploring Behavior in Action • The ability to make one’s own commitments and keep them • Freedom to encourage, help, and allow other associates to grow in knowledge, skill and scope of responsibility • Consultation with others before undertaking actions that could impact the reputation of the company • Fairness to each other and everyone with whom contact is made

Work Motivation at W.L. Gore & Associates Wilbert Gore Exploring Behavior in Action • What are your thoughts about Bill Gore’s lattice structure? • What are your reactions to the four principles that govern behavior? • Would these principles work in other organizations? Why or why not? • Do you think the company can maintain its philosophy as it continues to grow?

Knowledge Objectives • Define work motivation and explain why it is important to organizational success. • Discuss how managers can use Maslow’s need hierarchy and ERG theory to motivate associates. • Describe how need for achievement, need for affiliation, and need for power relate to work performance and motivation. • Explain how Herzberg’s two-factor theory of motivation has influenced current management practice. More

Knowledge Objectives • Discuss the application of expectancy theory to motivation. • Understand equity theory and procedural justice, and discuss how fairness judgments influence work motivation. • Explain how goal-setting theory can be used to motivate associates. • Describe how jobs can be enriched and how job enrichment can enhance motivation. • Based on all major theories of work motivation, describe specific actions that can be taken to increase and sustain employee motivation.

What is Motivation? Forces coming from within a person that account for the willful direction, intensity, and persistence of the person’s efforts toward achieving specific goals, where achievement is not due solely to ability or to environmental factors

Equation Person’s level of performance is a function (f) of both ability and motivation: Performance = f (Ability x Motivation) Environmental factors also play a role

Theories of Motivation • Content Theories • Maslow’s need hierarchy • Alderfer’s ERG theory • McClelland’s need theory • Herzberg’s two-factor theory • Process Theories • Expectancy theory • Equity theory • Goal-setting theory

Abraham Maslow Abraham Maslow Maslow's Need Hierarchy

Self-Actualization Social and Belongingness Needs Must work your way up… Safety Needs Physiological Needs Maslow’s Need Hierarchy Esteem Needs

Clayton Alderfer Alderfer's ERG Theory

ERG Theory ExistenceNeeds RelatednessNeeds GrowthNeeds Satisfaction and Progression Frustration and Regression

Self- Actualization Esteem Needs Growth Needs Social and Belongingness Needs Relatedness Needs Safety Needs Physiological Needs Existence Needs Maslow’s Need Hierarchy Alderfer’s ERG Theory Comparison of Two Theories Adapted from Exhibit 6-1: Maslow’s Need Hierarchy and Alderfer’s ERG Theory Compared

Theory of Needs David C. McClelland McClelland’s

McClelland’s Theory of Needs Power Achievement Affiliation

Conclusion • People with a high need for institutional power are particularly good at • Increasing morale • Creating clear expectations • Getting others to work for the good of the organization • Effective managers have both a high need for achievement and a high need for institutional power

Managers Over the Edge ManagerialAdvice • Why do you think there have been changes in the need for achievement over the last 20+ years? • Do you agree or disagree with the two reasons (coerciveness and shortcuts) given that can cause problems? • It is suggested that understanding needs and managing needs are two guidelines that will help high-achievement managers. Do you agree or disagree with this idea?

Frederick Herzberg Herzberg's Two-Factor Theory

Two-Factor Theory • Emphasizes two sets of rewards or outcomes – those related to job satisfaction and those related to job dissatisfaction • The two sets are not opposite ends of the same continuum but are independent states • Job factors leading to satisfaction are different from those leading to dissatisfaction, and vice versa

Herzberg’s Two-Factor Theory HygieneFactors Motivators

Motivators Hygiene Factors Two-Factor Theory When increased, lead to greater satisfaction When deficient, lead to greater dissatisfaction • Achievement • Recognition • Responsibility • Opportunity for advancement or promotion • Challenging work • Potential for personal growth • Pay • Technical supervision • Working conditions • Company policies and procedures • Interpersonal relationships with others • Status • Security

Process Theories Expectancy Equity Goal-Setting

MF = Motivational Force E = Expectancy I = Instrumentality V = Valence Victor Vroom I1 I2 I3 Expectancy Theory MF = E x  (I x V) V1 Outcome V2 Effort Performance Outcome E MF = V3 Outcome Adapted from Exhibit 6-2: Expectancy Theory

Expectancy Theory To increase motivation • Heighten expectancy by increasing associates’ beliefs that exerting effort will lead to higher levels of performance • Increase instrumentalities by clearly linking high performance to outcomes • Increase valence by providing outcomes that are highly valued

Equity Theory Motivation is based on a person’s assessment of the ratio of the outcomes received (pay, status) for inputs on the job (effort, ability) compared to the same ratio for a comparison other My Outcomes Other’s Outcomes vs. My inputs Other’s Inputs

Equity Theory Perceived inequity, employees may: • Increase or decrease inputs • Change their outcomes • Distort perceptions of inputs and/or outcomes • Distort perceptions of other’s inputs and/or outcomes • Change the referent others • Leave the organization

Reactions to Inequity Sensitives – pay a great deal of attention to outcome-input ratios, motivated to resolve any inequity – favorable or unfavorable Benevolents – tolerant of inequity that is unfavorable but not comfortable with inequity that favors them Entitleds – do not tolerate unfavorable inequity but are comfortable with inequity that favors them

Reactions to Equity Feelings of equity frequently lead to outcome satisfaction and job satisfaction, organizational commitment, and organizational citizenship behaviors. Organizational Citizenship – an associate’s willingness to engage in organizationally important behaviors that go beyond prescribed job duties – helping co-workers, expending extra effort, etc.

Distributive Justice A form of justice that relates to perceptions of fairness in outcomes. Often tied to perceptions of inequity.

Formal grievance procedures Based on accurate information Procedures free from bias Ethical code Procedures applied consistently Treated with respect Procedural Justice Voice in the decision process Given reasons for decisions Procedural Justice The degree to which people think the procedures used to determine outcomes are fair. Some rules:

Edwin Locke Goal-Setting Theory Challenging and specific goals increase human performance because they affectattention, effort, and persistence. To beeffective, managers should address: • Goal difficulty • Goal specificity • Goal commitment • Participation in setting goals • Feedback

Factors Increasing the Desirability of Attaining a Given Goal Factors Increasing the Perceived Ability of Attaining a Given Goal Factors Affecting Goal Commitment Adapted From Exhibit 6-3: Factors Affecting Goal Commitment

Conclusions Feedback on performance, even in the absence of established goals, is likely to have a positive effect on motivation. Feedback is especially important when performance goals exist and when they are relatively difficult to achieve.

Making Visible Change Thoughts? John and Maryanne McCormack • Motivate employees by: • Providing a well-defined career path • Providing valued rewards and benefits • Setting specific, challenging goals • Providing support to help build client base • Avoiding layoffs of associates • Engaging associates in a variety of organizational decisions ExperiencingStrategic OB

Motivation Practices Motivation Theories Find Rewards Tie to Performance Redesign Jobs Provide Feedback Clarify Goals MaslowERG X X X McClelland X X X X X Herzberg X Expectancy X X X X Equity X X X X Goal Setting X X X Motivating Associates: Integration of Theory Adapted from Exhibit 6-4: Motivation Factors Resulting from Motivation Theories

Motivating Associates: Integration of Theory • Find meaningful individual rewards • Tie rewards to performance • Redesign jobs – job enlargement and job enrichment • Provide feedback • Clarify expectations and goals – some use MBO

Job Enrichment Richard Hackman Greg Oldham SkillVariety TaskIdentity TaskSignificance Autonomy Feedback

Connecting People in the Workplace Thoughts? • Deloitte recommends: • Design physical space that fostersconnections • Build an organizational cushion of time and space • Cultivate communities • Stimulate rich networks of high-quality relationships • Provide collaboration tools ExperiencingStrategic OB

Provide Feedback • Feedback is most effective when provided in conjunction with goals • Feedback should be repeated and provided at regular intervals • Feedback should contain information about how associates can improve their performance • Feedback should come from a credible source • Feedback should focus on the performance, not the person

The Strategic Lens • Assume that you are managing a talented but unmotivated associate. Also assume that organizational resources needed for the job are generally sufficient. What factors would you consider first in attempting to motivate the associate? Why those factors? • A number of theories of motivation suggest that different rewards might be important to different people. How difficult is it to reward people differently for performing similar work? • How will your individual motivation affect your career opportunities?

Questions

Chapter 6 Work Motivation