Transcript
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Principles of Management
Management and Motivation
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Motivation
The force that moves people to initiate, direct,and sustain behaviour and action.
The psychological forces acting on an individualthat determine: Directionpossible behaviors the individual could
engage in
Efforthow hard the individual will work
Persistencewhether the individual will keep trying or
give up Explains why people behave the way they do in
organizations
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The Motivation Process
Need A perceived deficiency.
Intrinsic Rewards Internally experienced rewards that resultdirectly from a persons behaviour
Extrinsic Rewards Rewards that are provided by others as aconsequence of a particular behaviour
Intrinsically Motivated Behavior Behavior that is performed for its own sake.
The source of the motivation that comes from actually engaging in thebehavior.
The sense of accomplishment and achievement derived from doing the workitself
Extrinsically Motivated Behavior Behavior that is performed to acquire material or social rewards or to
avoid punishment. The source of the motivation is the consequences of the behavior and not
the behavior itself.
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The Motivation Framework
Search for ways
to satisfy need
Choice of
behavior tosatisfy need
Determination offuture needs and
search/choice for
satisfaction
Evaluation of
need satisfaction
Need or
deficiency
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Outcomes and Inputs
Outcome
Anything a person gets from a job or an
organization
Pay, job security, autonomy, accomplishment
Input
Anything a person contributes to his or her job
or organization Time, effort, skills, knowledge, work behaviors
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The Motivation Equation
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Theories of Motivation
Need A requirement for survival and well-being.
Need Theories Theories of motivation that focus on what needs people are trying to
satisfy at work and what outcomes will satisfy those needs.
Basic premise is that people are motivated to obtain outcomes at workto satisfy their needs.
Managers must determine what needs a worker wants satisfied and ensurethat a person receives the outcomes when performing well.
Theories of motivation that focus on the needs that cause people to actin certain ways.
Maslows hierarchy of needs:
Physiological needs Safety needs
Social needs
Esteem needs
Self actualization needs
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Theories of Motivation
Expectancy Theory Motivation will be high when workers believe:
High levels of effort will lead to high performance.
High performance will lead to the attainment of desiredoutcomes.
Motivation is highest when expectancy,instrumentality, and valence levels are high.
If one of the values is low, motivation will be low.
Workers do not believe they can perform well. Workers do not believe that performance and rewards are
closely linked.
Workers do not value the rewards offered for performance.
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Expectancy, Instrumentality, and
Valence
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Expectancy Theory
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Alderfers ERG Theory
After lower level needs satisfied, person seeks higher needs. WhenAfter lower level needs satisfied, person seeks higher needs. When
unable to satisfy higher needs, lower needs motivation is raised.unable to satisfy higher needs, lower needs motivation is raised.
GrowthGrowth
SelfSelf--development,development,
creative workcreative work
ContinuallyContinually
improve skillsimprove skills
RelatednessRelatednessInterpersonalInterpersonal
relations, feelingsrelations, feelings
Good relations,Good relations,
accurate feedbackaccurate feedback
ExistenceExistenceFood, water,Food, water,
clothing, and shelterclothing, and shelter
Adequate payAdequate pay
for necessitiesfor necessities
NeedsNeeds DescriptionDescription ExamplesExamples
HighestHighest--levellevel
needsneeds
LowestLowest--levellevelneedsneeds
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Two-Factor Theory
Presented by Fredrik Herzberg
A need theory arguing that job dissatisfaction and lack ofmotivation are derived from factors separate from thosethat affect satisfaction and motivation.
Focuses on outcomes that lead to higher motivation andjob satisfaction, and those outcomes that can preventdissatisfaction. Motivator needs relate to the nature of the work itself
autonomy, responsibility, interesting work.
Hygiene needs are related to the physical and psychological
context of the workcomfortable work environment, pay, jobsecurity.
Unsatisfied hygiene needs create dissatisfaction; satisfaction ofhygiene needs does not lead to motivation or job satisfaction.
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McClellands Acquired-Needs Theory
A need theory suggesting that needs areacquired or learned through life and that somepeople are more oriented to certain needs thanto other needs.
Need forAchievement A strong need to perform challenging tasks well and
meet personal standards for excellence
Need forAffiliation
A concern for good interpersonal relations, beingliked, and getting along
Need forPower A desire to control or influence others
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Equity Theory
Suggested by J. Stacy Adams
A process theory suggesting that people are motivatedto seek equitable treatment compared with others insimilar situations.
Focuses on peoples perceptions of the fairness (or lackof fairness) of their work outcomes in proportion to theirwork inputs. A relative outcome to input ratio comparison to oneself or to
another person (referent) perceived as similar to oneself.
Equity exists when a person perceives that their outcome/inputratio to be equal to the referents ratio.
If the referent receives more outcomes, they should also give moreinputs to achieve equity.
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Equity Theory
Inequity exists when workers outcome/input ratio is notequal to referent. Underpayment inequity: ratio is less than the referent.
Workers feel they are not getting the outcomes they should for theirinputs.
Overpayment inequity: ratio is higher than the referent. Workers feel they are getting more outcomes than they should for
their inputs.
Restoring Equity: Inequity creates tension in workerscausing them to attempt to restore equity. In underpayment, workers may reduce input levels to correct
(rebalance) the ratio or seek a raise. In overpayment, workers may change the referent person and
readjust their ratio perception.
If inequity persists, workers will often choose to leave theorganization.
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Goal Setting Theory
Focuses on identifying the types of goals that are effective inproducing high levels of motivation and explaining why goals havethese effects.
Considers how managers can ensure that workers focus their inputsin the direction of high performance and the achievement of
organizational goals. Goal What a person is trying to accomplish.
Characteristics of Motivating Goals Specific and not vague in providing direction
Difficult but not impossible to attain
Accepted and committed to by workers Feedback on goal attainment is important.
Goals point out what is important to the firm. Workers should be encouraged to develop action plans to attain goals.
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Goal Setting Theory
Goal-Directed
Effort
Organizational
support
Performance Satisfaction
Extrinsic
Rewards
Individual
abilities and
traits
Goal
commitment
Goal
difficulty
Goal
specificity
Intrinsic
Rewards
Goal
acceptance
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Operant Conditioning Theory
Operant Conditioning People learn to perform behaviors that lead to desired
consequences and learn not to perform behaviors that lead toundesired consequences.
Linking specific behaviors to the attainment of specific outcomes
can motivate high performance and prevent behaviors thatdetract from organizational effectiveness.
Positive Reinforcement Getting desired outcomes for performing needed work behaviors
Positive reinforcers: Pay, praises, or promotions
Negative Reinforcement Eliminating undesired outcomes once the desired behavioroccurs
Negative reinforcers: criticisms, pay cuts, suspension
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Operant Conditioning Theory
Extinction
Curtailing the performance of a dysfunctional
behavior by eliminating whatever is reinforcing it.
Behavior is not rewarded and over time, the worker stopsperforming it.
Punishment
Administering an undesired/negative consequence to
immediately stop a dysfunctional behavior. Manager administers an undesired consequence to worker
(verbal reprimand, demotion, pay cut).
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Organizational Behaviour
Modification
The systematic application of operant
conditioning techniques to organizationally
functional behaviors and discourage
dysfunctional behaviors.
Improves productivity, attendance,
punctuality and other behaviors that are
specific, objective and countable.
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Steps inOrganizational
Behavior
Modification
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Social Learning Theory
A theory that takes into account how learning
and motivation are influenced by peoples
thoughts and beliefs and their observations of
other peoples behavior. Vicarious Learning (Observational Learning)
Learning that occurs when a learner is motivated to
perform a behavior by watching another person
perform and be rewarded. People are motivated to imitate models who are highly
competent, expert, receive attractive reinforcers, and are
friendly or approachable.
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Social Learning Theory
Self-Reinforcement
Any desired or attractive outcome or award that a
person can give himself or herself for good
performance. The self-management of behavior
Self-efficacy
A persons belief about his or her ability to perform a
behavior successfully. Influences motivation both when managers provide
reinforcement and when workers themselves provide it.
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Pay and Motivation
Pay as a Motivator
Expectancy: Instrumentality, the association between
performance and outcomes, must be high for
motivation to be high. Need Theory: pay is used to satisfy many needs.
Equity Theory: pay is given in relation to inputs.
Goal Setting Theory: pay is linked to attainment of
goals. Learning Theory: outcomes (pay), is distributed upon
performance of functional behaviors.
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Merit Pay and Performance
Merit Pay Plan A compensation plan that bases pay on based on individual, group
and/or organization performance.
Individual plan: when individual performance (sales) can accuratelymeasured.
Group plan: when group that works closely together is measured andrewarded as a group.
Organization plan: when group or individual outcomes not easilymeasured.
Piece-rate Pay Employees pay is based on the number of units that the employee
produces.
Commission Pay Employees pay is based on a percentage of sales that the employee
makes.
Organization-based Merit Plans Scanlon planfocuses on reduced expenses or cutting costs
Profit sharingemployees receive a share of an organizations profits
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Gainsharing The Scanlon Plan is the oldest and most widely used type of gainsharing
plan. It's based on the historical ratio of labour cost to sales value ofproduction. And, because it rewards labour savings, it is most appropriatefor companies that have a "high touch labour" content.
The Rucker Plan is based on the premise that the ratio of labour costs toproduction value (actual net sales plus or minus inventory changes, minusoutside purchased materials and services) is historically stable in themanufacturing industry. This principle became the underlying precept of the
Rucker Plan, which tracks the value added to a product as a measure ofproductivity. Because this plan utilizes a multicost formula, it's mostappropriate for organizations that want to improve other variables, such asscrap reduction or energy consumption, in addition to labour.
Improshare measures changes in the relationship between outputs and thetime (input) required to produce them. This plan is minimally affected bychanges in sales volume, technology and capital equipment, product mix, orprice and wage increases. It's the easiest of the gainsharing plans tounderstand and install.
Custom plans are used to customize components of a gainsharing plan tosupport a unique aspect of an organization's environment. Typically, theseplans modify either the "textbook descriptions" of the bonus formula or theemployee- involvement system.
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