Goal setting theory

Learning Objectives

L01: Identify the kinds of behaviors managers need to motivate people

L02: List principles for setting goals that motivate employees

L03: Summarize how to reward good performance effectively

L04: Describe the key beliefs that affect people’s motivation

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Learning Objectives

L05: Discuss ways in which people’s individual needs affect their behavior.

L06: Define ways to create jobs that motivate.

L07: Summarize how people assess fairness and how to achieve fairness.

L08: Identify causes and consequences of a satisfied workforce.

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Motivating for Performance Motivation – forces that energize, direct and

sustain a person’s efforts. Organizations want to motivate people to:

Join the organizationRemain in the organizationCome to work regularlyWork hard to achieve high output and high qualityExhibit good citizenship by being committed and

performing above and beyond the call of duty to help the company

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Goal Setting Theory

Proposes that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end

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Well-crafted goals are highly motivating Meaningful Acceptable Challenging but Attainable Specific and quantifiable

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Stretch Goals

Targets that are exceptionally demanding, and that some people would never even think of.Vertical stretch goals are aligned with

current activities including productivity and financial results

Horizontal stretch goals involve people’s professional development, such as attempting and learning new, difficult things

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Test Your Knowledge

Describe the characteristics of goals that most effectively motivate people.

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Reinforcing Performance Law of effect: A law formulated by Edward

Thorndike in 1911 stating that behavior that is followed by positive consequences will likely be repeated

Reinforcers: Positive consequences that motivate behavior

Organizational behavior modification (OB mod) – The application of reinforcement theory in organizational settings

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The Consequences of Behavior

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Key Consequences of Behavior1. Positive reinforcement - applying a

consequence that increases the likelihood that the person will repeat the behavior that led to it.

2. Negative reinforcement - removing or withholding an undesirable consequence.

3. Punishment - administering an aversive consequence.

4. Extinction - withdrawing or failing to provide a reinforcing consequence.

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What do you want to reinforce? Solid solutions instead of quick fixes Risk taking instead of risk avoiding Applied creativity instead of mindless

conformity Decision action instead of paralysis of

analysis Smart work instead of busywork Simplification instead of needless

complication

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What do you want to reinforce? Quietly effective behavior instead of

squeaky wheels Quality work instead of fast work Loyalty instead of turnover Working together instead of working

against

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Rewards

Should support the firm’s strategy Should relate people’s performance in

relation to strategic objectives Can be nonmonetary (intellectual

challenge, greater responsibility, autonomy, recognition, flexible benefits, and greater influence over decisions)

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Should you punish mistakes?Appropriate

Violation of law, ethical standards, important safety rules

When employees perform like a slacker

Inappropriate

When poor performance is not the individual’s fault

When managers take out their frustrations on the wrong people

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How to Manage Mistakes Recognize that everyone makes mistakes and

that mistakes can be dealt with constructively by discussing and learning from them

Praise people who deliver based news to their bosses

Don’t punish, unsuccessful good-faith efforts Encourage people to try new things and don’t

punish them if what they try doesn’t work out.

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Feedback should…

Provide useful feedback Pay attention to your employee’s

request for feedback

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Where can you get feedback from? Customers Work statistics Production data Supervisors Self assessment Peers

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Test Your Knowledge

Identify four examples of people advertently

reinforcing the wrong behaviors, or

punishing or extinguishing good behaviors

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Performance-related Beliefs Expectancy theory: proposes that

people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome.

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Expectancy Theory Three events

Effort PerformanceOutcome

BeliefsExpectancy – employees’ perception of the likelihood

that their efforts will enable them to attain their performance goals

Instrumentality – the perceived likelihood that performance will be followed by a particular outcome

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Expectancy Theory

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Managerial Implications of Expectancy Theory1. Increase expectancies - provide a work

environment that facilitates good performance and set realistically attainable performance goals

2. Identify positively valent outcomes – Understand want people want to get out of work

3. Make performance instrumental toward positive outcomes – Make sure that good performance is followed by personal recognition and praise, favorable performance reviewers, pay increases, and other positive results

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Test Your Knowledge

Discuss the managerial implications of

expectancy theory. Relate them specifically

to expectancy theory.

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Maslow’s Need Hierarchy

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Maslow’s Need Hierarchy1. Physiological – food, water, sex, and shelter

2. Safety – protection against threat and deprivation

3. Social – friendship, affection, belonging, and love

4. Ego – independence, achievement, freedom, status, recognition, and self-esteem

5. Self-actualization – realizing one’s full potential, becoming everything one is capable of being

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Alderfer’s ERG Theory

Proposes that people have three basic sets of needs that can operate simultaneously

Existence: material and physiological desiresRelatedness: relationships with other peopleGrowth: full utilization of personal capacities and

developing new capacities

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McClelland’s Theory

Need for Achievement – strong orientation toward accomplishment and an obsession with success and goal attainment

Need for Affiliation - strong desire to be liked by other people

Need for Power - desire to influence or control other people

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Test Your Knowledge

A difference between Maslow's Need Hierarchy and Alderfer's ERG Theory is that A) ERG theory states that various needs operate simultaneously. B) Maslow's hierarchy has more scientific validity. C) Maslow's hierarchy reminds managers that even if one need seems to motivate people, other needs may still need attention. D) ERG theory focuses on five levels of need. E) only Maslow's theory serves to remind managers of the types of reinforcers that can be used to motivate people.

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Types of Motivation

Extrinsic motivation – rewards given to a person by the boss, the company or some other person

Intrinsic motivation – rewards a worker derives directly from performing the job itself

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Designing Motivating Jobs Job rotation: changing from one routine

task to another to alleviate boredom Job enlargement: Giving people

additional tasks at the same time to alleviate boredom

Job enrichment: Changing a task to make it inherently more rewarding, motivating, and satisfying

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Herzberg’s two-factor theory Proposed two broad categories of factors

that affect people working on their jobs:Hygiene factors: characteristics of the workplace,

such as company policies, working conditions, pay, and supervision, that can make people dissatisfied.

Motivators: Factors that make a job more motivating, such as additional job responsibilities, opportunities for personal growth and recognition, and feelings of achievement.

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Hackman and Oldham Model of Job Enrichment

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Hackman and Oldham Model Three critical psychological states

They believe they are doing something meaningful because their work is important to other people

They feel personally responsible for how the work turns out.

They learn how well they performed their jobs.

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Hackman and Oldham ModelFive core job dimensions

1. Skill variety – different job activities involving several skills and talents

2. Task identity – the completion of a whole identifiable piece of work

3. Task significance – an important, positive impact on the lives of others

4. Autonomy – independence and discretion in making decisions

5. Feedback – independence and discretion in making decisions

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What is empowerment?

The process of sharing power with employees, thereby enhancing their

confidence in their ability to perform their jobs and their belief that they are

influential contributors to the organization.

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Why empowerment encourages employees? They perceive meaning in their work; their

jobs with skill They feel competent, or capable of

performing their jobs with skill They have a sense of self-determination, of

having some choice in regard to the tasks, methods, and pace of their work

They have an impact – that is, they have some influence over important outcomes

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Test Your Knowledge

Compare and contrast job enlargement, job enrichment, and job rotation. Give

an example of each.

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Equity Theory Proposes that people assess how fairly

they have been treated according to two key factors outcomes and inputs

1. Outcomes – various things the person receives on the job

2. Inputs – contributions the person makes to the organization

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Equity Equation

Their own Outcomes/Inputs

Versus

Others’ Outcomes/Inputs

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How people restore equity Reducing their inputs Increase their outcomes Decrease others’ outcomes Increase others’ inputs

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Procedural Justice

Using a fair process in decision making and making sure others know that the process was as fair as possible.

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Test Your Knowledge

Describe a time when you felt unfairly treated and explain why. How did you respond to the inequity? What other

options might you have had?

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Job Satisfaction

Job dissatisfaction leads to: higher turnover, higher absenteeism, less good citizenship among employees, etc.

Dissatisfied workers negatively impact organizations, especially relationship-oriented service organizations

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Eight categories of needs addressed by QWL

1. Adequate and fair compensation.

2. A safe and healthy environment.

3. Jobs that develop human capacities.

4. A chance for personal growth and security.

5. A social environment that fosters personal identity, freedom from prejudices, a sense of community, and upward mobility.

6. Constitutionalism, or the rights of personal privacy, dissent, and due process.

7. A work role that minimizes infringement on personal leisure and family needs.

8. Socially responsible organizational actions.10-45

Quality of work life programsCreate workplace that enhances employee

well-being and satisfaction

Satisfy the full range of employee needs

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Psychological Contract

A set of perceptions of what employees owe their employers and what their employers owe them.

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Test Your Knowledge

Identify the cause and consequences of a satisfied workforce.

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YOU should be able to

L01: Identify the kinds of behaviors managers need to motivate people

L02: List principles for setting goals that motivate employees

L03: Summarize how to reward good performance effectively

L04: Describe the key beliefs that affect people’s motivation

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YOU should be able to

L05: Discuss ways in which people’s individual needs affect their behavior.

L06: Define ways to create jobs that motivate.

L07: Summarize how people assess fairness and how to achieve fairness.

L08: Identify causes and consequences of a satisfied workforce.

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