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Managing Employee Motivation and Performance

Strategic Management Lecture 9

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A. K. Mohiuddin
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131 views25 pages

Managing Employee Motivation and Performance

Strategic Management Lecture 9

Uploaded by

A. K. Mohiuddin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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7

Ready Notes

Managing Employee
Motivation and
Performance

Prof. Begum Khaleda Khanam

Slide content created by Joseph B. Mosca, Monmouth University.


Copyright © Houghton Mifflin Company. All rights reserved.
The Nature of Motivation

• If an employee chooses
to work hard one day,
and work just hard
enough to avoid
reprimand, or as little as
possible on another
day, what then is
“Motivation?”
– Motivation is the set of
forces that causes
people to behave in
certain ways.

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 2


The Motivational Framework

Choice of
Need or Search for ways
behavior to
deficiency to satisfy needs
satisfy need

Determination of
future needs and Evaluation of
search/choice for need satisfaction
satisfaction

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 3


The Importance of Motivation in the
Workplace
• What are the three
factors that
determine individual
performance?
– Motivation: The
desire to do the job.
– Ability: The capability
to do the job.
– Work environment:
The resources
needed to do the job.

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 4


What Was the Traditional Approach?

• Economic gain was the


primary thing that
motivated employees.
• Money was more
important to employees
that the nature of the
job.
• Employees could be
expected to perform
any kind of job if they
were paid.

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 5


What Is the Human Relations Approach?

• It emphasizes the role


of social processes in
the workplace.
• Employees want to feel
useful and important.
• Are these social needs
more important than
money?
– YES!

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 6


Content Perspectives on Motivation

• Content perspectives are?


– Approaches to motivation that try to
answer the question, ”What factors in the
workplace motivate people?”
• Maslow’s hierarchy of needs is?
– Physiological  Security  Belongingness
Esteem  Self-actualization

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 7


Figure 16.2: Maslow’s Hierarchy of Needs

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What Is the ERG Theory?

• Suggests that people’s needs are


grouped into three possibly overlapping
categories.
• What are they?
– Existence.
– Relatedness.
– Growth.

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 9


What Is the Two-Factor Theory?

• Suggests that people’s satisfaction and


dissatisfaction are influenced by two
independent set of factors.
• Can you name them?
– Motivation factors.
– Hygiene factors.
• The following is a micro view of the
Two-Factor theory:

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Figure 16.3: The Two-Factor Theory of
Motivation

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 11


Micro View of the Two-Factor Theory

• Motivation factors: • Hygiene factors:


– Achievement – Supervisors
– Recognition – Working conditions
– The work itself – Interpersonal
– Responsibility relations
– Advancement and – Pay and security
growth – Company policies
and administration

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 12


What Are the Individual Human Needs?

• Need for achievement:


– The desire to accomplish a goal or task
more effectively than in the past.
• Need for affiliation:
– The desire for human companionship and
acceptance.
• Need for power:
– The desire to be influential in a group and
to control one’s environment.

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 13


Process Perspectives on Motivation Is?

• How does motivation


occur?
– Process perspectives:
• Approaches to motivation
that focus on why people
choose certain behavioral
options to satisfy their needs
and how they evaluate their
satisfaction after they have
attained these goals.

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 14


What Is the Expectancy Theory?

• Suggests that
motivation depends
on two factors.
• What are the two
factors?
– How much we want
something.
– How likely we think
we are to get it.

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 15


Figure 16.4: The Expectancy Model of
Motivation

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 16


The Equity Theory

• What is it?
– Suggests that people are
motivated to seek social
equity in the rewards
they receive for
performance.
• Porter-Lawler Extension
theory:
– Suggests that if
performance results in
equitable rewards,
people will be more
satisfied. Thus,
performance can lead to
satisfaction.

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 17


Goal-Setting Theory

• Goal difficulty:
– The extent to which
a goal is challenging
and requires effort.
• Goal specificity:
– The clarity and
precision of the goal.

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 18


Figure 16.5: The Porter-Lawler Extension of
Expectancy Theory

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 19


Figure 16.6: The Expanded Goal-Setting
Theory of Motivation

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Elements of Reinforcement Theory

• Arrangement of the • Schedules for


reinforcement applying
contingencies: reinforcement:
– Positive – Fixed interval.
reinforcement. – Variable interval.
– Avoidance. – Fixed ratio.
– Punishment. – Variable ratio.
– Extinction.

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 21


Copyright © Houghton Mifflin Company. All rights reserved. 16 - 22
Popular Motivational Strategies

• Empowerment:
– The process of enabling workers to set
their own work goals, make decisions, and
solve problems within their sphere of
responsibility and authority.
• Participation:
– The process of giving employees a voice in
making decisions about their own work.

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 23


New Forms of Working Arrangements

• Flexible work
schedules.
• Job sharing.
• Compressed work
schedules.
• Telecommuting.

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 24


Reward Systems

• Reward system:
– The formal and informal
mechanism by which employee
performance is defined,
evaluated, and rewarded.
• Merit system:
– A reward system whereby people
get different pay raises at the end
of the year depending on their
overall job performance.
• Incentive system:
– A reward system whereby people
get different pay amounts at each
pay period in proportion to what
they do.

Copyright © Houghton Mifflin Company. All rights reserved. 16 - 25

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