Organizational Behavior - Session 3

Organisational Behavior, Do Tien Long

Motivation: From Concepts to Applications

Lecturer: Do Tien Long09 04 51 54 [email protected]

mailto:[email protected]


What Is Motivation?

Direction

PersistenceIntensity


Key Elements1. Intensity: how hard a person tries2. Direction: toward beneficial goal3. Persistence: how long a person tries

Key Elements1. Intensity: how hard a person tries2. Direction: toward beneficial goal3. Persistence: how long a person tries

Motivation

The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.

What is Motivation? What is Motivation?


Hierarchy of Needs Theory (Maslow)Hierarchy of Needs Theory (Maslow)Hierarchy of Needs Theory

There is a hierarchy of five needs—physiological, safety, social, esteem, and self-actualization; as each need is substantially satisfied, the next need becomes dominant.

Self-Actualization

The drive to become what one is capable of becoming.


Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

E X H I B I T 6–1E X H I B I T 6–1

Lower-Order NeedsNeeds that are satisfied externally; physiological and safety needs.

Higher-Order NeedsNeeds that are satisfied

internally; social, esteem, and self-actualization

needs.SelfSelf

EsteemEsteem

SocialSocial

SafetySafety

PhysiologicalPhysiological


Assumptions of Maslow’s HierarchyAssumptions of Maslow’s HierarchyMovement up the Pyramid

•Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied.

Maslow Application:A homeless person will not be motivated tomeditate!

Maslow Application:A homeless person will not be motivated tomeditate!

•Individuals therefore must move up the hierarchy in order


Theory XTheory XManagers See Workers AsManagers See Workers As……

Disliking WorkDisliking Work

Avoiding ResponsibilityAvoiding Responsibility

Having Little AmbitionHaving Little Ambition

Theory YTheory YManagers See Workers AsManagers See Workers As……

Enjoying WorkEnjoying Work

Accepting ResponsibilityAccepting Responsibility

SelfSelf--DirectedDirected


Herzberg’s Two-Factor TheoryHerzberg’s Two-Factor TheoryBottom Line: Satisfaction and Dissatisfaction are

not Opposite Ends of the Same Thing!

Separate constructs– Hygiene Factors---Extrinsic

& Related to Dissatisfaction

– Motivation Factors---Intrinsic and Related to

Satisfaction

Hygiene Factors:

•Salary

•Work Conditions

•Company Policies

Motivators:

•Achievement

•Responsibility

•Growth


Contrasting Views of Satisfaction and Dissatisfaction

Contrasting Views of Satisfaction and Dissatisfaction



David McClelland’s Theory of NeedsDavid McClelland’s Theory of Needs

Need for AchievementThe drive to excel, to achieve in relation to a set of standards, to strive to succeed.

Need for AffiliationThe desire for friendly and close personal relationships.

Need for PowerThe need to make others behave in a way that they would not have behaved otherwise.

Bottom Line: Individuals have

different levels of needs in each of these areas, and those levels will drive their behavior


Matching High Achievers and JobsMatching High Achievers and Jobs



Cognitive Evaluation TheoryCognitive Evaluation TheoryCognitive Evaluation Theory

Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation.

The theory may only be relevant to jobs that are neither extremely dull nor extremely interesting.

Hint: For this theory, think about how fun it is to read in the summer, but once reading is assigned to you for a grade, you don’t want to do it!



What Would Herzberg Say? What Would Maslow Say?

What Would Herzberg Say? What Would Maslow Say?


Goal-Setting Theory (Edwin Locke)Goal-Setting Theory (Edwin Locke)Basic Premise: That specific and difficult goals,

with self-generated feedback, lead to higher performance.

But, the relationship between goals and performance will depend on

•goal commitment

–“I want to do it & I can do it”

•task characteristics (simple, well-learned)

•national culture


Goal Setting in Action: MBO ProgramsGoal Setting in Action: MBO Programs

Management By Objectives Programs• Company wide goals & objectives• Goals aligned at all levels• Based on Goal Setting Theory

Management By Objectives Programs• Company wide goals & objectives• Goals aligned at all levels• Based on Goal Setting Theory


What is MBO?What is MBO?

Key Elements1. Goal specificity2. Participative decision making3. An explicit time period4. Performance feedback

Key Elements1. Goal specificity2. Participative decision making3. An explicit time period4. Performance feedback

Management by Objectives (MBO)

A program that encompasses specific goals, participatively set, for an explicit time period, with feedback on goal progress.


Cascading of ObjectivesCascading of Objectives



Linking MBO and Goal-Setting TheoryLinking MBO and Goal-Setting Theory

MBO Goal-Setting Theory

Goal Specificity Yes Yes

Goal Difficulty Yes Yes

Feedback Yes Yes

Participation Yes No(qualified)


Why MBOs FailWhy MBOs FailUnrealistic expectations about MBO resultsLack of commitment by top managementFailure to allocate reward properlyCultural incompatibilities


Self-EfficacySelf-Efficacy

Self Esteem, which is…. Individuals’ degree of liking or disliking themselves.

•An individual’s feeling that s/he can complete a task (e.g. “I know I can!”)

•Enhances probability that goals will be achieved

Not to be confused with:


Self-Efficacy and Goal Setting Self-Efficacy and Goal Setting


Four Ways of Increasing Self Efficacy (Bandura)

Four Ways of Increasing Self Efficacy (Bandura)

1. Enactive Mastery

2. Vicarious Modeling

3. Verbal Persuasion

4. Arousal

Note: Basic Premise/Mechanism of Pygmalion and Galatea Effects


Reinforcement TheoryReinforcement Theory

Assumptions:•Behavior is environmentally caused.•Behavior can be modified (reinforced) by providing (controlling) consequences.•Reinforced behavior tends to be repeated.

Assumptions:•Behavior is environmentally caused.•Behavior can be modified (reinforced) by providing (controlling) consequences.•Reinforced behavior tends to be repeated.

Argues that behavior is a function of its consequences.


Equity TheoryEquity Theory

Referent Comparisons:Self-insideSelf-outsideOther-insideOther-outside

Referent Comparisons:Self-insideSelf-outsideOther-insideOther-outside

Equity Theory

Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities.


Equity Theory (cont’d)Equity Theory (cont’d)




Choices for dealing with inequity:1. Change inputs (slack off)2. Change outcomes (increase output)3. Distort/change perceptions of self4. Distort/change perceptions of others5. Choose a different referent person6. Leave the field (quit the job)

Choices for dealing with inequity:1. Change inputs (slack off)2. Change outcomes (increase output)3. Distort/change perceptions of self4. Distort/change perceptions of others5. Choose a different referent person6. Leave the field (quit the job)



Propositions relating to inequitable pay:1. Overrewarded hourly employees produce more

than equitably rewarded employees.2. Overrewarded piece-work employees produce

less, but do higher quality piece work.3. Underrewarded hourly employees produce lower

quality work.4. Underrewarded employees produce larger

quantities of lower-quality piece work than equitably rewarded employees.

Propositions relating to inequitable pay:1. Overrewarded hourly employees produce more

than equitably rewarded employees.2. Overrewarded piece-work employees produce

less, but do higher quality piece work.3. Underrewarded hourly employees produce lower

quality work.4. Underrewarded employees produce larger

quantities of lower-quality piece work than equitably rewarded employees.


Justice and Equity TheoryJustice and Equity Theory


Distributive Justice

Perceived fairness of the outcome (the final distribution).

“Who got what?”

Procedural Justice

The perceived fairness of the process used to

determine the outcome (the final distribution).

“How was who gets what decided?”

Interactional Justice

The degree to which one is treated with dignity and

respect.

“Was I treated well?”

Three types of Justice Three types of Justice


Ethical Values and Ethical Values and Behaviors of LeadersBehaviors of Leaders

Bottom line• All three links between the boxes must be intact or motivation

will not occur. Thus,

• Individuals must feel that if they try, they can performAnd

• If they perform, they will be rewardedAnd

• When they are rewarded, the reward will be something they care about

Expectancy TheoryExpectancy Theory


If you study really hard and only get a B on an exam, but your classmate barely studies at all and gets an A, what theory will help explain why you feel less motivated to go to class?

Chapter Check-Up: Motivation


What theory would say that this man, who knows he

works hard and is performing well, will be motivated by

a gym membership for being a high performer?



Expectancy Theory.

Would a gym membership be considered a motivator or hygiene factor, according to Herzberg? Discuss with a classmate.



Putting It All TogetherPutting It All Together


Job Design TheoryJob Design Theory

Characteristics:1. Skill variety2. Task identity3. Task significance4. Autonomy5. Feedback

Characteristics:1. Skill variety2. Task identity3. Task significance4. Autonomy5. Feedback

Job Characteristics Model

Identifies five job characteristics and their relationship to personal and work outcomes.


Job Design Theory (cont’d)Job Design Theory (cont’d)Job Characteristics Model– Jobs with skill variety, task identity, task significance,

autonomy, and for which feedback of results is given, directly affect three psychological states of employees:

• Knowledge of results

• Meaningfulness of work

• Personal feelings of responsibility for results

– Increases in these psychological states result in increased motivation, performance, and job satisfaction.


The Job Characteristics ModelThe Job Characteristics Model

E X H I B I T 7–1E X H I B I T 7–1Source: J.R. Hackman and G.R. Oldham, Work Design (excerpted from pp. 78–80). © 1980 by Addison-Wesley Publishing Co., Inc. Reprinted by permission of Addison-Wesley Longman, Inc.


Job Design Theory (cont’d)Job Design Theory (cont’d)Skill Variety

The degree to which a job requires a variety of different activities (how may different skills are used in a given day, week, month?).

Task Identity

The degree to which the job requires completion of a whole and identifiable piece of work (from beginning to end).

Task Significance

The degree to which the job has a substantial impact on the lives or work of other people.


Job Design Theory (cont’d)Job Design Theory (cont’d)Autonomy

The degree to which the job provides substantial freedom and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out.

Feedback

The degree to which carrying out the work activities required by a job results in the individual obtaining direct and clear information about the effectiveness of his or her performance.


Computing a Motivating Potential ScoreComputing a Motivating Potential Score

People who work on jobs with high core dimensions are generally more motivated, satisfied, and productive.

Job dimensions operate through the psychological states in influencing personal and work outcome variables rather than influencing them directly.

People who work on jobs with high core dimensions are generally more motivated, satisfied, and productive.

Job dimensions operate through the psychological states in influencing personal and work outcome variables rather than influencing them directly.


Job Design and SchedulingJob Design and Scheduling

Job Rotation

The periodic shifting of a worker from one task to another.

Job Enlargement

The horizontal expansion of jobs.

Job Enrichment

The vertical expansion of jobs.


Guidelines for Enriching a JobGuidelines for Enriching a Job

E X H I B I T 7–2E X H I B I T 7–2Source: J.R. Hackman and J.L. Suttle, eds., Improving Life at Work (Glenview, IL: Scott Foresman, 1977), p. 138.


Alternative Work ArrangementsAlternative Work ArrangementsFlextime

Employees work during a common core time period each day but have discretion in forming their total workday from a flexible set of hours outside the core.

Job Sharing

The practice of having two or more people split a 40-hour-a-week job.


Example of a Flextime ScheduleExample of a Flextime Schedule



Alternative Work Arrangements, cont.

Alternative Work Arrangements, cont.

Categories of telecommuting jobs:• Routine information handling tasks• Mobile activities• Professional and other knowledge-related tasks

Categories of telecommuting jobs:• Routine information handling tasks• Mobile activities• Professional and other knowledge-related tasks

Telecommuting

Employees do their work at home on a computer that is linked to their office.


TelecommutingTelecommutingAdvantages

– Larger labor pool

– Higher productivity

– Less turnover

– Improved morale

– Reduced office-space costs

Disadvantages (Employer)

– Less direct supervision of employees

– Difficult to coordinate teamwork

– Difficult to evaluate non-quantitative performance


Performance = f(A x M x O)Performance = f(A x M x O)

E X H I B I T 6–9E X H I B I T 6–9Source: Adapted from M. Blumberg and C.D. Pringle, “The Missing Opportunity in Organizational Research: Some Implications for a Theory of Work Performance,” Academy of Management Review, October 1982, p. 565.


What is Employee Involvement?What is Employee Involvement?Employee Involvement Program

A participative process that uses the entire capacity of employees and is designed to encourage increased commitment to the organization’s success.


Examples of Employee Involvement ProgramsExamples of Employee Involvement ProgramsParticipative Management

A process in which subordinates share a significant degree of decision-making power with their immediate superiors.


Examples of Employee Involvement Programs (cont’d)Examples of Employee Involvement Programs (cont’d)Representative Participation

Workers participate in organizational decision making through a small group of representative employees.

Works CouncilsGroups of nominated or elected employees who must be consulted when management makes decisions involving personnel.

Board RepresentativeA form of representative participation; employees sit on a company’s board of directors and represent the interests of the firm’s employees.


Examples of Employee Involvement Programs (cont’d)Examples of Employee Involvement Programs (cont’d)

Quality Circle

A work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions, and take corrective actions.


Linking EI Programs and Motivation TheoriesLinking EI Programs and Motivation Theories

Employee Involvement

Programs

Employee Employee Involvement Involvement

ProgramsPrograms

Theory Y(Believing employees want to be involved)

Theory YTheory Y(Believing (Believing employees employees want to be want to be involved)involved)

Two-Factor Theory(Intrinsic

Motivation)

TwoTwo--Factor Factor TheoryTheory((Intrinsic Intrinsic

Motivation)Motivation)

ERG Theory(Employee

Needs)

ERG TheoryERG Theory((EmployeeEmployee

Needs)Needs)


Rewarding Employees: Four Aspects Rewarding Employees: Four Aspects

•What to Pay (Internal vs. external equity)

•How to Pay (e.g Piece rate, merit based, bonuses, profit sharing, gain sharing, ESOPs, skill-based pay)

•What Benefits to Offer (e.g.,Flexible benefits)

•How to Recognize Employees


Rewarding Employees: Variable Pay ProgramsRewarding Employees: Variable Pay Programs

Variable Pay Programs

A portion of an employee’s pay is based on some individual and/or organization measure of performance.

• Piece rate pay plans

• Profit sharing plans

• Gain sharing plans


Variable Pay Programs (cont’d)Variable Pay Programs (cont’d)

Profit-Sharing PlansOrganization wide programs that distribute compensation based on some established formula designed around a company’s profitability.

Gain SharingAn incentive plan in which improvements in group productivity determine the total amount of money that is allocated.

Piece-rate Pay PlansWorkers are paid a fixed sum for each unit of production completed.


Rewarding Employees Rewarding Employees

Employee Stock Ownership Plans (ESOPs)

Company-established benefit plans in which employees acquire stock as part of their benefits.


Skill-Based Pay PlansSkill-Based Pay Plans

Benefits of Skill-based Pay Plans:1. Provides staffing flexibility.

2. Facilitates communication across the organization.

3. Lessens “protection of territory” behaviors.

4. Meets the needs of employees for advancement (without promotion).

5. Leads to performance improvements.

Benefits of Skill-based Pay Plans:1. Provides staffing flexibility.

2. Facilitates communication across the organization.

3. Lessens “protection of territory” behaviors.

4. Meets the needs of employees for advancement (without promotion).

5. Leads to performance improvements.

Pay levels are based on how many skills employees have or how many jobs they can do.


Skill-Based Pay Plans (cont’d)Skill-Based Pay Plans (cont’d)

Drawbacks of Skill-based Pay Plans:1. Lack of additional learning opportunities that will

increase employee pay.

2. Continuing to pay employees for skills that have become obsolete.

3. Paying for skills which are of no immediate use to the organization.

4. Paying for a skill, not for the level of employee performance for the particular skill.

Drawbacks of Skill-based Pay Plans:1. Lack of additional learning opportunities that will

increase employee pay.

2. Continuing to pay employees for skills that have become obsolete.

3. Paying for skills which are of no immediate use to the organization.

4. Paying for a skill, not for the level of employee performance for the particular skill.


Linking Skill-based Plans and Motivation Theories

Linking Skill-based Plans and Motivation Theories

Skill Based Pay Plans

Skill Based Pay Skill Based Pay PlansPlans

Reinforcement Theory

Reinforcement Reinforcement TheoryTheory

Equity

Theory

Equity Equity

Theory Theory

ERG Theory (Growth)

ERG Theory ERG Theory (Growth)(Growth)

McClelland’s Need for

Achievement

McClellandMcClelland’’s s Need for Need for

AchievementAchievement


Flexible BenefitsFlexible Benefits

Flexible Spending Plans: allow employees to use their tax-free benefit dollars to purchase benefits and pay service premiums.

Flexible Spending Plans: allow employees to use their tax-free benefit dollars to purchase benefits and pay service premiums.

Modular Plans: predesigned benefits packages for specific groups of employees.

Modular Plans: predesigned benefits packages for specific groups of employees.

Core-Plus Plans:a core of essential benefits and a menu-like selection of other benefit options.

Core-Plus Plans:a core of essential benefits and a menu-like selection of other benefit options.

Employees tailor their benefit program to meet their personal need by picking and choosing from a menu of benefit options.


Employee Recognition ProgramsEmployee Recognition ProgramsIntrinsic rewards: stimulate intrinsic motivation – Personal attention given to employee

– Approval & appreciation for a job well done

– Growing in popularity and usage

Benefits of programs– Fulfill employees’ desire for recognition

– Inexpensive to implement

– Encourages repetition of desired behaviors

Drawbacks of programs– Susceptible to manipulation by management


E X H I B I T 7–2E X H I B I T 7–2From the Wall Street Journal, October 21, 1997. Reprinted by permission of Cartoon Features Syndicate.


Implications for ManagersImplications for Managers

In Order to Motivate Employees– Recognize individual differences.

– Use goals and feedback.

– Allow employees to participate in decisions that affect them.

– Link rewards to performance.

– Check the system for equity.

Organizational Behavior - Session 3

Business

additional

explicit time

free benefit

alternative

job dimensions

david mcclellands

flexible spending

high core