Chapter 16

Motivating Employees
 Motivation
• Motivation is the process that accounts for an
individual’s intensity, direction, and persistence of
effort toward attaining a goal. It involves:
• Arousal, direction, and persistence of behavior
 Employee motivation affects productivity
 Part of a manager’s job is to channel motivation
toward the accomplishment of organizational goals

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 Two Types of Rewards
Intrinsic rewards--satisfactions a person
receives in the process of performing a
particular action.
Extrinsic rewards--given by another person.

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16.1 A Simple Model of Motivation

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 Content Perspectives
on Motivation

If managers understand employees’ needs, they

can design appropriate reward systems
 Needs motivate people
 Needs translate into an internal drive that motivates
behavior
 People have a variety of needs

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 Traditional (Content) Theories of
Motivation
Emphasize the needs that motivate people

 Maslow’s ‘Hierarchy of Needs Theory’

 Alderfer’s ‘ERG Theory’
 Herzberg’s ‘Two-Factor Theory’
 Mc Clelland’s ‘Acquired Needs Theory’

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16.2 Maslow’s Hierarchy of Needs

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 Maslow’s Hierarchy of Needs
• Once a need is satisfied, it declines in
importance and the next higher need is
activated
• There are opportunities for fulfillment off the
job and on the job in each of the five levels of
needs

Experiential Exercise: What Motivates You?

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 ERG Theory

 Existence needs - the needs for physical

well-being
 Relatedness needs - the needs for
satisfactory relationships with others
 Growth needs - the needs that focus on the
development of human potential and the
desire for personal growth
frustration–regression principle: failure to meet a high-order need may
cause a regression to an already satisfied lower-order need

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16.4 Herzberg’s Two-Factor Theory

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 Acquired Needs Theory

David McClelland
• Need for Achievement desire to accomplish
something difficult, master complex tasks, and
surpass others
• Need for Affiliation desire to form close personal
relationships, avoid conflict, and establish warm
friendships
• Need for Power desire to influence or control others

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 Contemporary (Process) Perspectives
on Motivation

How people select behavioral actions

 Goal Setting Theory/MBO
 Adam’s Equity Theory
 Vroom’s Expectancy Theory

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 Goal Setting Theory

• Increase motivation by setting goals

• Key components of the theory:
» Goal specificity
» Goal difficulty
» Goal acceptance
» Feedback
Management by Objectives (MBO) is an extension of
Goal-setting Theory, but it also includes:
 the joint setting of goals between manager and
subordinate i.e. participation in goal-setting.
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 Equity Theory’s “Relevant Others”
• Individual perceptions of fairness based on comparison with
one’s four (4) Relevant Others or Referent Groups:
– Self-Inside: The person’s experience in a different
job in the same organization
– Self-Outside: The person’s experience in a different
job in a different organization
– Other-Inside: Another individual or group within the
organization
– Other-Outside: Another individual or group outside
of the organization

7-14
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Equity Theory

• Perceived inequity can be reduced by:

» Changing work effort
» Changing outcomes
» Changing perception
» Leaving the job
• Inequity occurs when the input-to-outcome
ratios are out of balance

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Expectancy Theory

• Motivation depends on individuals’

expectations about their ability to perform
tasks and receive desired rewards
• E – P: putting effort into a given task will lead
to high performance
• P – O: successful performance of a task will
lead to the desired outcome
• Valence – the value or attraction an individual
has for an outcome
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 16.5 Major Elements of
Expectancy Theory

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 Reinforcement Perspective
on Motivation

Behavior Modification Reinforcement

Reinforcement theory An act that causes a
techniques used to behavior to be
modify behavior repeated or inhibited

Law of Effect
Positively reinforced
behavior tends to be
repeated and
unreinforced behavior
inhibited
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 Reinforcement Perspective
on Motivation

Positive reinforcement in the

administration of a pleasant and
rewarding consequence.
Avoidance learning is the removal of an
unpleasant consequence following a
desired behavior
Reinforcement .
Tools Punishment is the imposition of
unpleasant outcomes on an employee
.
Extinction is the withdrawal of a
positive reward, behavior is no longer
reinforced and hence is less likely to
occur in the future.
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 16.6 Changing Behavior
with Reinforcement

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 Social Learning Theory

Individual’s motivation can result from thoughts,

beliefs, and observations
– Vicarious learning – observational learning from
seeing others’ behaviors and rewards

– Self-reinforcement – motivating yourself by reaching

goals and providing positive reinforcement for yourself

– Self-efficacy – belief about your own ability to

accomplish tasks
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 Job Design for Motivation
• Job design = application of motivational
theories to the structure of work for
improving productivity and satisfaction
• Job simplification = job design whose purpose
is to improve task efficiency by reducing the
number of tasks a single person must do

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 Job Design for Motivation
• Job Rotation = job design that systematically
moves employees from one job to another to
provide them with variety and stimulation
• Job Enlargement = job design that combines a
series of tasks into one new, broader job to
give employees variety and challenge

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 Job Design for Motivation
• Job Enrichment = job design that incorporates
achievement, recognition, and other high-
level motivators into the work
• Work redesign = altering of jobs to increase
both the quality of employee’s work
experience and their productivity

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 Core Job Dimensions

Dimensions that determine a

job’s motivational potential:
Based on:
→ Critical Psychological
 Skill variety States
 Task identity → Personal and Work
Outcomes
 Task significance → Employee Growth-Need
 Autonomy Strength
 Feedback
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 The Job Characteristics Model
• Five Core Job Dimensions
– Skill Variety: degree to which the job incorporates a number
of different skills and talents
– Task Identity: degree to which the job requires the
completion of a whole and identifiable piece of work
– Task Significance: how the job impacts the lives of others
– Autonomy: identifies how much freedom and
independence the worker has over the job
– Feedback: how much the job generates direct and clear
information about the worker’s performance

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16.7 The Job Characteristics Model

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 Innovative Ideas for Motivating

• Organizations are using various types of incentive

compensation to motivate employees to higher
levels of performance
• Variable compensation is a key motivational tool
• Incentive plans can backfire
– They should be combined with motivational ideas and
intrinsic rewards
• Incentives should reward the desired behavior
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16.8 New Motivational Compensation Programs

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 Empowering People to
Meet Higher Needs

 Employees receive information about

company performance
 Employees have knowledge and skills to
contribute to company goals
 Employees have the power to make
substance decisions
 Employees are rewarded based on company
performance
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16.9 A Continuum of Empowerment

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Giving Meaning to Work
through Engagement

• Instill a sense of support and meaning

• Help employees obtain intrinsic reward
• Focus on learning, contribution, and growth

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