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PSYCH 16: INDUSTRIAL/ORGANIZATIONAL PSYCHOLOGY

B.S. IN PSYCHOLOGY
Second Semester AY 2014-2015

Research and Comprehensive Review in the study of

Industrial Psychology

TOPIC NO. 6: MOTIVATION

1. What is Motivation? Differentiate intrinsic and extrinsic motivation.

Motivation is the force that drives an individual/employee to do well.

Intrinsic motivationis a work motivationin the absence of such external factors

(example pay, promotions, and co-workers). When they are intrinsically motivated, they will
seek to perform well because either enjoy the challenge of successfully completing the task.
While extrinsic motivation a work motivationthat arises from such non-personal factors as pay,
co-workers and opportunities for advancement. When they are extrinsically motivated they dont
particularly enjoy the task but motivated to perform well to receive some type of reward.

1.1 Is it essentially important to study motivation of employees? Why?

Yes, because its good to know if the employees are motivated either they are intrinsically
motivated or extrinsically motivated.

1.2 Is an employee predisposed to being motivated? Explain the four individual

differences that are most related to work motivation.

Yes, some employees are more predisposed to being motivated that the others. (Psychologist)

Four Individual Differences that most related to work motivation:

1. PERSONALITY
Five Factor Model of Personality Several of these dimensions are related to
behaviors suggesting high levels of motivation.
- Conscientiousness is the best predictor of work performance.
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- OCB & Academic Performance, stability is most associated with setting
high goals and Extraversion is most highly correlated with promotions.

2. SELF-ESTEEM
Self-esteem is how you view yourselves either positive or negative.
SELF-ESTEEM WORKSHOPS- Experience with success approach
Based on Self-fulfilling prophecy (THE GALATEA EFFECT)
SUPERVISORS BEHAVIOR- Train supervisors to communicate a feeling of
confidence in an employee.
Based on the following theories:
a. PYGMALION EFFECT
b. GOLEM EFFECT
3. INTRINSIC MOTIVATION TENDENCY
People who are intrinsically motivated dont need external rewards such as pay
or praise.
4. NEEDS FOR ACHIEVEMENT(Theory developed by David McClelland)
Need for Achievement is the extent to which a person desires to be successful.
Employees who have strong need for achievement are motivated by jobs that are
challenging and over which they have some control, whereas employees who have
minimal achievements needs are more satisfied when jobs involve little challenge and
have high probability for success.

1.3 Explain the following:

A. ORGANIZATIONAL CITIZENSHIP BEHAVIOR

OCB. Organizational citizenship is a concept that all companies wish to have but very
few can actually achieve. It is rooted in individual employees' view of the company and how
they associate themselves with it. It is wanting employees to feel closely associated with the city
is organizational citizenship, or a perspective that employees have whereby they extend their
behaviors beyond the normal duties of their position.Like for instance, helping their co-workers,
skipping lunch to finish a project, and Making suggestions for org. improvement.

B. KORMAN'S CONSISTENCY THEORY

On the basis of a review of research testing Korman's self-consistency theory, chronic

self-esteem and situational self-esteem appear to be important determinants of performance,
choice, and satisfaction. Further, the findings of some studies support Korman's predictions that
high self-esteem persons will perform more effectively and show higher correlations between
task liking and success, between reward expectancy and performance, between need fulfillment
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and satisfaction, and between self-implementation and occupational choice. However, one
cannot conclude on the basis of this research that man is self-consistent and not self-
enhancing, since self-enhancement theory is a viable alternative explanation for most of the
findings. A major source of ambiguity is that researchers have not tested the crucial self-
consistency prediction that low self-esteem persons would seek consistency even at the cost of a
dissatisfying occupation, failure, and other negative consequences. Several methodological and
conceptual improvements are suggested for future applications of self-consistency theory to
work motivation.

C. PYGMALION EFFECT

The Pygmalion effector Rosenthal effect is the phenomenon whereby the greater the
expectation placed upon people, the better they perform. And it is the idea that if people believe
that something is true, they will act in manner consistent with that belief.

D. GALATEA EFFECT

The Galatea Effectfocuses upon the effect of self-expectations and how they interact
with the expectations of others. The Galatea Effect is that part of our motivation that depends
upon our self-expectations and the idea that people behave in ways consistent with their self-
image.

E.GOLEM EFFECT

The Golem effect is a psychological phenomenon in which lower expectations placed

upon individuals either by supervisors or the individual themselves lead to poorer performance
by the individual.

2. Discuss the following theories in relation to explaining the motivation of people at work:

A.MASLOW'S HIERARCHY OF NEED

Maslow (1943) stated that people are motivated to achieve certain needs. When one need
is fulfilled a person seeks to fulfill the next one, and so on.

The earliest and most widespread version of Maslow's (1943, 1954)hierarchy of needs includes
five motivational needs, often depicted as hierarchical levels within a pyramid.
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This five stage model can be divided into basic (or deficiency) needs (e.g. physiological, safety,
love, and esteem) and growth needs (self-actualization).

THE ORIGINAL HIERARCHY OF NEEDS FIVE-STAGE MODEL INCLUDES:

1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep.

2. Safety needs - protection from elements, security, order, law, stability, freedom from fear.

3. Love and belongingness needs - friendship, intimacy, affection and love, - from work group,
family, friends, and romantic relationships.

4. Esteem needs - achievement, mastery, independence, status, dominance, prestige, self-respect,

and respect from other.

5. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal

growth and peak experiences.

APPLICATION IN INDUSTRIAL PSYCHOLOGY AS APPLIED IN WORK MOTIVATION:

1. BASIC BIOLOGICAL NEEDS

An individual who does not have a job, is homeless and on the verge of starvation
will be satisfied with any job for as long as it provides for these basic needs.
2. SAFETY NEEDS
Job security, benefits, compensation/ feeling safe in the work environment 3 out
of 4 in top answers was related to safety or security.
3. EGO NEEDS
Employee rewards and recognition programs.
4. SELF-ACTUALIZATION NEEDS
Needs to realize ones potential.

B.MCCLELLANDS NEED ACHIEVEMENT THEORY

Psychologist David McClelland developed Need Theory, a motivational model that

attempts to explain how the needs for achievement, power (authority), and affiliation affect
people's actions in a management context. Need Theory is commonly often taught in
management and organizational-behavior classes.
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Achievement
People who are strongly achievement-motivated are driven by the desire for mastery. They prefer
working on tasks of moderate difficulty in which outcomes are the result of their effort rather
than of luck. They value receiving feedback on their work.

IN INDUSTRIAL PSYCHOLOGY:
Need for ACHIEVEMENT- Employees are motivated by jobs that are challenging and over they
have some control.
Affiliation
People who are strongly affiliation-motivated are driven by the desire to create and maintain
social relationships. They enjoy belonging to a group and want to feel loved and accepted. They
may not make effective managers because they may worry too much about how others will feel
about them.

IN INDUSTRIAL PSYCHOLOGY:
Need for AFFLIATION- Employees who have a strong need for affiliation are motivated by jobs
in which they can work with and help other people.

Power
People who are strongly power-motivated are driven by the desire to influence, teach, or
encourage others. They enjoy work and place a high value on discipline. However, they may take
a zero-sum approach to group workfor one person to win, or succeed, another must lose, or
fail. If channeled appropriately, though, this can positively support group goals and help others
in the group feel competent about their work.

IN INDUSTRIAL PSYCHOLOGY:
Need for POWER- Employees who have strong need for power are motivated by a desire to
influence others rather than simply to be successful.

C.ERG THEORY- Clayton Aldefer

Clayton P. Alderfer's ERG theory from 1969 condenses Maslow's five human needs into three
categories: Existence, Relatedness and Growth.

3 LEVELS OF SATISFACTION THAT ARE THE FORCES BEHIND MOTIVATION:

1. EXISTENCE NEEDS
include all material and physiological desires (e.g., food, water, air, clothing, safety, physical
love and affection). Maslow's first two levels.
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2. RELATEDNESS NEEDS
encompass social and external esteem; relationships with significant others like family, friends,
co-workers and employers. This also means to be recognized and feel secure as part of a group
or family. Maslow's third and fourth levels.
3. GROWTH NEEDS
internal esteem and self-actualization; these impel a person to make creative or productive
effects on himself and the environment (e.g., to progress toward one's ideal self). Maslow's
fourth and fifth levels. This includes desires to be creative and productive, and to complete
meaningful tasks.

D. EXPECTANCY THEORY - Victor H. Vroom

Motivation is a function of expectancy, instrumentality and valence.

Motivation= E (I x V)

o EXPECTANCY (E) the perceived relationship between the amount of effort an

employee puts in and the resulting outcome.
o INSTRUMENTALITY (I) the extent to which the outcome of a workers performance,
if noticed results in a particular consequence.
o VALENCE (V) the extent to which an employee values a particular consequence.

E.SELF REGULATION THEORY- Step by step

Self-regulation theory (SRT) says that we expend effort in control of what we think, say and
do, trying to be the person we want to be, both in particular situations and in the longer-term.
Much self-regulation is in stopping ourselves from doing things we know we should not do,
for example preventing ourselves from impolitely telling other people that they are stupid.
Self-regulation is also applied in creating positive behavior, such as studying for exams.
Self-regulation is typically needed when there is a conflict of motivations, for example to run
away from a fire as opposed to helping to rescue victims of the fire.
Four components of self-regulation described by Baumeister et al (2007) are:
Standards: Of desirable behavior.
Motivation: To meet standards.
Monitoring: Of situations and thoughts that proceed breaking standards.
Willpower: Internal strength to control urges.
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F.SOCIAL INFLUENCE THEORY

Social influence is defined as change in an individuals thoughts, feelings, attitudes, or

behaviors that results from interaction with another individual or a group. Social influence is
distinct from conformity, power, and authority. Conformity occurs when an individual expresses
a particular opinion or behavior in order to fit in to a given situation or to meet the expectations
of a given other, though he does not necessarily hold that opinion or believe that the behavior is
appropriate. Power is the ability to force or coerce reticular way by controlling her outcomes.
Authority is power that is believed to be legitimate (rather than coercive) by those who are
subjected to it. Social influence, however, is the process by which individuals make real changes
to their feelings and behaviors as a result of interaction with others who are perceived to be
similar, desirable, or expert. People adjust their beliefs with respect to others to whom they feel
similar in accordance with psychological principles such as balance. Individuals are also
influenced by the majority: when a large portion of an individuals referent social group holds a
particular attitude, it is likely that the individual will adopt it as well.

G.SOCIAL LEARNING THEORY

The Social Learning Theory,a system of learning most commonly associated with behaviorist
Albert Bandura, is most commonly applied in educational settings. You can also apply this
theory, which argues that people learn from each other through observation and socialization, to
your small business. Through the use of this theory, you may be able to more effectively guide
employee behavior and promote the business-building behaviors that your workers must adapt to
make your small business a successful one.

Step 1

Model behavior for employees. The first step in teaching a behavior in the social learning theory
is modeling that behavior. Instead of simply telling employees what they want them to do,
leaders should physically model the behavior, acting out the process they hope those under them
will follow. By seeing the behavior modeled, employees can develop a more defined
understanding of what the behavior entails and experience more success in carrying out the
behavior in question.
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Step 2

Encourage the employees to imitate your behaviors. After modeling, leaders should verbally
encourage behavior imitation. They can do this in two ways. First, they can directly tell the
employee that they want him to do as he saw modeled. Secondly, they can reward employees
who follow the modeled behavior in a public fashion, allowing other workers to see that this
behavior is the one that they want all workers to adopt.

Step 3

Observe the employee as he carries out the behavior. Leaders should keep a continual eye on
workers, making sure that they are following the procedures they modeled. If the employees are
found not to be following these procedures, the leader should step in and correct the employee's
behavior, encouraging him to adapt his behavior.

Step 4

Establish consequences for behavior deviation. When employees fail to follow the behaviors that
the leaders are trying to endorse, there must be consequences for doing so. These consequences
may involve simple verbal correction or be as severe as formal sanctions.

H.GOAL SETTING THEORY OF MOTIVATION- Edwin Locke

The primary motivation in work situation can be defined in terms of our desire to achieve a
particular goal. This theory is used to increase motivation of an employee.

S= Specific

M=Measurable

A=Attainable

R=Relevant

T= Time-Bound

EMP=Employee Participation
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I.JOB CHARACTERISTICS THEORY

JOB CHARACTERISTICS THEORY is a theory of work design. It provides a set of

implementing principles for enriching jobs in organizational settings. The original version of
job characteristics theory proposed a model of five core job characteristics (i.e. skill variety,
task identity, task significance, autonomy, and feedback) that affect five work-
relatedoutcomes (i.e. motivation, satisfaction, performance, and absenteeism and turnover)
through three psychological states (i.e. experienced meaningfulness, experienced responsibility,
and knowledge of results).

J. EQUITY THEORY- J. Stacy Adams

This theory stating that employees will be satisfied if their ratio of effort to reward is similar to
that of other employee.

2.1 Explain the discrepancy and needs theories.

Employees are motivated in jobs itself and if the organization meet our expectations and
values to satisfy our needs.

NEEDS, VALUES and WANTS -

A discrepancy between an employee needs, values and wants and what a job offers can
also affect the level of motivation and job satisfaction.

THREE THEORIES FOCUS ON EMPLOYEES NEEDS AND VALUES:

Maslows Need Hierarchy

ERG Theory
Two-Factor Theory

3. What is Job Satisfaction?

JOB SATISFACTION is a state of feeling of happiness, contentment, and self-

fulfillment in work.

3.1 What determines job satisfaction? Job satisfaction determines:

Job Security, Benefits, Compensation/Pay, Opportunities to use skills and abilities,

and Feeling safe in the work environment

3.2 What are the factors contributing to job satisfaction?

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3.3 What is Job Enlargement?

JOB ENLARGEMENT(sometimes also referred to as horizontal loading) involves the

addition of extra, similar, tasks to a job.

In job enlargement, the job itself remains essentially unchanged. However, by widening the
range of tasks that need to be performed, hopefully the employee will experience less repetition
and monotony that are common on production lines which rely upon the division of labor.

With job enlargement, the employee rarely needs to acquire new skills to carry out the additional
task, and the motivational benefits of job enrichment are not usually experienced.

One important negative aspect is that job enlargement is sometimes viewed by employees as a
requirement to carry out more work for the same amount of pay.

4. What makes employee stay? What is Job Embeddedness Theory?

JOB EMBEDDEDNESS THEORY

The study reported here examined Job Embeddedness theory, as introduced by Mitchell, Holtom,
Lee, Sablynski, and Erez (2001), which offers a method of discovering why people stay in an
organization. Extension agents in two states (N=454) reported significantly different levels of job
embeddedness during the study period. Regression analyses showed that job embeddedness was
significantly correlated with and predicted unique variance in intent to stay.

5. Does getting paid for a task that one enjoys performing reduce intrinsic motivation?

Yes.

6. What could be the best theory that could be most meaningful to explain employees work
motivation? Why?

The best theory that could be most meaningful to explain employees work
motivation is the Maslows Needs Hierarchy, because all people needs are all in
the basic features of this theory. This theory motivate us to work because of our
needs to survive and it set our motivation to do well on our jobs/work.
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7. Research for the current motivational programs commonly implemented by companies.

Incentive programs are not new: werent you rewarded if you broughthome a good report card or
cleaned your room? That, in its most basic form, is an incentive program rewarding good
behavior.

However, employee incentive programs tend to compensate those employees who go above and
beyond their typical duties and excel in ways that help the company achieve a higher profit
margin, make more sales, garner more leads, etc.

An incentive also gives the employee a more personal stake in the companys mission; if the
company excels, the employee benefits.

Depending on your companys goals, an incentive program can push workers to perform more
efficiently, according to Victoria Downing, president of Remodelers Advantage and a
regular REMODELING columnist. Its a carrot to get people to do their work faster and better,
she says, adding that one of the trickiest parts about incentives is being sure the goal is clearly
understood and thinking through how it will affect the whole company.
Bob Ender, president of DreamMaker Bath & Kitchen, in Ann Arbor, Mich., instituted an
incentive program in 2008 for his production staff and in 2010 for hissales team (including
himself) so that he could easily spot any production problems. We saw repeat issues of labor
slippage throughout the industry and nobody could really put their finger on what it was, he
explains. Owners always like to blame the guys in the field, but we knew there had to be more
to it than that.

The Right Incentive Plan

There are as many types of incentive program as there are uses for duct tape. Depending on what
you hope to achieve, you have to decide which type works for your company and your
employees. According to Jennifer Loftus, national director at Astron Solutions, a New York
based human resources consulting firm, there are three main categories for incentive plans:
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individual, group, and company. Individual plans reward each employee based on their own
merits and can be tailored to suit the employee, she explains, adding that the rewards can range
from cash or gift cards to trips, tools, and so on.
Group plans are for individual work groups. Each group would need to adhere to a set standard
or measure. For every single employee, there has to be a line of sight, Loftus says. An
employee must understand how his performance affects the companys goals.

The companywide plan is typically a standard profit-sharing program: if the company meets
or exceeds its goals for the year, quarter, or month then the entire company gets a piece of the
action.

Loftus says that while companywide plans weave in very nicely throughout anorganization,
some employees may still not have that clear line of sight as to how their job affects the
companys overall profitability. If an employer wants to send a message that We are a team,
an organization-wide incentive or profit-sharing plan is best, she says.

Its not unusual to reap unexpected rewards when you institute any type of
new management program for your business. Incentive programs have the potential to provide a
wealth of unintended consequences. When Bob Ender at DreamMaker Bath & Kitchen instituted
the incentive programs for his sales and labor teams, he realized some surprising benefits.

Equitable pay structure. Now theres one pay structure across the board, according to Ender.
So theres no bickering amongst employees and no animosity because everyones on the same
pay scale, he says.
Increased customer satisfaction. In an industry notorious for runningjobs longer than
estimated, DreamMaker consistently beats deadlines, Ender says, adding that this has led to
improved customer satisfaction numbers in hisGuildQuality survey results.
Better cost control. Because deadlines are being met, there are fewer unplanned manhours to
pay for. Idle time and lumber runs are also down.
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Improved estimating. Because the database is improved, we see less general slippage from a
company standpoint and therefore were seeing fewer change orders, Ender says. This not only
makes his clients happy, it also leads to more thorough proposals by the sales team.
More checks and balances. Now the workers keep an eye on one anothers progress because
they dont want someones lackluster performance to affect their own compensation.

Just Do It
Once you decide which type of program is right for your company, what youre going to
measure (profits, sales, number of change orders, etc.), whos going to participate, and whos
going to administer it, the next step is letting the participants know whats at stake.Loftus advises
the slow and steady approach. Incentives can be very powerful from a positive perspective as
well as from a negative perspective, so an owner would not want to accidentally go down the
wrong road and put together a plan that wasnt thought through, she says. So its better to wait
a little bit of time to make sure your proverbial ducks are in a row, so when the plan does launch
it is a success.Loftus recommends checking metrics over time to determine whether your
employees are hitting their marks and what issues are keeping you from meeting your goals. Let
the workers know sooner rather than later, so they dont find out two weeks prior to payout, she
says. This also gives your employees time to adjust their work. Constant monitoring and sharing
will keep people motivated.At the end of the designated time period, youre probably going to
have to make a few adjustments, or maybe even overhaul the entire process. The company
changes, the economy changes, so there are always tweaks going on, Loftus says. Incentive
programs are living, breathing things and they need to be watched and changed to support the
companys goals for the future.

Incentive Plans Are Not for Everyone

Just because some companies have success with an incentive program doesnt guarantee that it
will work for your business. You cant use an incentive program to make up for low pay or the
lack of other benefits, Loftus says, adding, Incentive plans are pay that is at risk, so it is not
guaranteed to an employee.
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Incentive programs are also not recommended for companies that have just one or two lead
carpenters. Youll likely end up estimating to the individual rather than to the task, Ender
explains. He says that unless youre doing at least $1 million inannual sales, an incentive
program might not be right for your company.

Loftus points out that another problem with smaller companies especially LLCs using
incentive programs is that the owner must be transparent with financialinformation in order for
the incentive program to work properly. You have to be comfortable sharing metrics and data
and information about profitability, she says. If youre not, then dont implement an incentive
plan.

Finally, Downing says that you might not really need an incentive program in the first place.
Most people want to do a good job and they want to excel, she reasons. So you could be
throwing something into the mix you might not want.

As for slippage issues, Enders incentive programs revealed problems in productionand sales. He
now uses checklists to prevent missed labor.
Mark A. Newman, senior editor, REMODELING.

8. What is retention program?

Employee retention programs offer organizations several strategies for reducing turnover. Since
people are the only assets that can literally get up and walk out the door, employee retention
programs can be vital in a tight job market. Although money has traditionally encouraged people
to stay around, savvy employers recognize that a variety of factors motivate employees.
Employee retention programs vary
because every company has a unique set of employees, every company needs its own set of
retention programs. For best results, employers should survey staff to find out what they value
most. However, some of the most popular programs include:

Orientation
Medical benefits
Tuition reimbursement
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Training incentives
Coaching
Career development assistance
Onsite daycare
Homebuyer program
Computer purchase assistance
Mentoring
Retirement savings matching
Competitive compensation
Flex time
Free passes to use to gain a few hours off to attend family or personal events
Magazine subscriptions
Wellness programs, ranging from health club discounts to free sports classes, as well as
rewards for healthy, stress-reducing choices.

No matter what programs you choose, start with the best intentions. Hire the right people.
Emphasize your company culture during the recruiting process. Usebehavioral interviews and
competency-based hiring to ensure fit.

9. What is employee morale?

EMPLOYEE MORALE

Description of the emotions, attitude, satisfaction, and overall outlook of employees during their
time in a workplace environment. Part of effective productivity is thought to be directly related
to the morale of the employees. Employees that are happy and positive at work are said to have
positive or high employee morale. Companies that maintain employees who are dissatisfied and
negative about their work environment are said to have negative or lowemployee morale.

10. Is the threat of punishment, like termination or dismissal from work an effective
motivator? Why or why not?

Maybe yes, because an employee will motivate to work if he/she will be punished that they can
do a better performance in their job, but sometimes I think this threat of punishment isnt good
for an employee and sometimes the organization, because if they are motivated with what they
are doing they didnt need this kind of punishment as their motivator.
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PSYCH 16: INDUSTRIAL/ORGANIZATIONAL PSYCHOLOGY

B.S. IN PSYCHOLOGY
Second Semester AY 2014-2015

Research and Comprehensive Review in the Study of

Industrial Psychology

Submitted by: Kimberly R. Reyes

Section: 3 PSY 2
Submitted to: Prof. Ferdinand V. Mendoza