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Identify four early theories of motivation and evaluate their applicability today. Apply the predictions of Cognitive Evaluation theory to intrinsic and extrinsic rewards. Compare and contrast goal-setting theory and Management by Objectives. Contrast reinforcement theory and goal-setting theory. Demonstrate how organizational justice is a refinement of equity theory. Apply the key tenets of expectancy theory to motivating employees. Compare contemporary theories of motivation. Explain to what degree motivation theories are culture-bound. © 2009 Prentice-Hall Inc. All rights reserved. 6- 1Defining Motivation: Defining Motivation The result of the interaction between the individual and the situation. The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal – specifically, an organizational goal. Three key elements: Intensity – how hard a person tries Direction – effort that is channeled toward, and consistent with, organizational goals Persistence – how long a person can maintain effort © 2009 Prentice-Hall Inc. All rights reserved. 6- 2Early Theories of Motivation: Early Theories of Motivation These early theories may not be valid, but they do form the basis for contemporary theories and are still used by practicing managers. Maslow’s Hierarchy of Needs Theory Alderfer’s ERG (Existence, Relatedness, and Growth) McGregor’s Theory X and Theory Y Herzberg’s Two-Factor Theory McClelland’s Theory of Needs © 2009 Prentice-Hall Inc. All rights reserved. 6- 3Maslow’s Hierarchy of Needs: Maslow’s Hierarchy of Needs There is a hierarchy of five needs. A s each need is substantially satisfied, the next need becomes dominant. Assumptions Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied Must move in hierarchical order © 2009 Prentice-Hall Inc. All rights reserved. 6- 4 Lower Order External Higher Order Internal See E X H I B I T 6-1Alderfer’s ERG Theory: Alderfer’s ERG Theory A reworking of Maslow to fit empirical research. Three groups of core needs: Existence (Maslow: physiological and safety) Relatedness (Maslow: social and status) Growth (Maslow: esteem and self-actualization) Removed the hierarchical assumption Can be motivated by all three at once Popular, but not accurate, theory © 2009 Prentice-Hall Inc. All rights reserved. 6- 5McGregor’s Theory X and Theory Y: McGregor’s Theory X and Theory Y Two distinct views of human beings: Theory X (basically negative) and Theory Y (positive). Managers used a set of assumptions based on their view The assumptions molded their behavior toward employees No empirical evidence to support this theory. © 2009 Prentice-Hall Inc. All rights reserved. 6- 6Herzberg’s Two-Factor Theory: Herzberg’s Two-Factor Theory © 2009 Prentice-Hall Inc. All rights reserved. 6- 7 See E X H I B I T S 6-2 and 6-3 Key Point: Satisfaction and dissatisfaction are not opposites but separate constructs Extrinsic and Related to Dissatisfaction Intrinsic and Related to SatisfactionCriticisms of Two-Factor Theory: Criticisms of Two-Factor Theory Herzberg says that hygiene factors must be met to remove dissatisfaction. If motivators are given, then satisfaction can occur. Herzberg is limited by his procedure Participants had self-serving bias Reliability of raters questioned Bias or errors of observation No overall measure of satisfaction was used Herzberg assumed, but didn’t research, a strong relationship between satisfaction and productivity © 2009 Prentice-Hall Inc. All rights reserved. 6- 8McClelland’s Three Needs Theory: McClelland’s Three Needs Theory Need for Achievement (nAch) The drive to excel, to achieve in relation to a set of standards, to strive to succeed Need for Power (nPow) The need to make others behave in a way that they would not have behaved otherwise Need for Affiliation (nAff) The desire for friendly and close interpersonal relationships People have varying levels of each of the three needs. Hard to measure © 2009 Prentice-Hall Inc. All rights reserved. 6- 9Performance Predictions for High nAch: Performance Predictions for High nAch People with a high need for achievement are likely to: Prefer to undertake activities with a 50/50 chance of success, avoiding very low- or high-risk situations Be motivated in jobs that offer high degree of personal responsibility, feedback, and moderate risk Not necessarily make good managers – too personal a focus. Most good general managers do NOT have a high nAch Need high level of nPow and low nAff for managerial success Good research support, but it is not a very practical theory © 2009 Prentice-Hall Inc. All rights reserved. 6- 10Contemporary Theories of Motivation: Cognitive Evaluation Theory Goal-Setting Theory Management by Objectives (MBO) Self-Efficacy Theory Also known as Social Cognitive Theory or Social Learning Theory Reinforcement Theory Equity Theory Expectancy Theory Contemporary Theories of Motivation © 2009 Prentice-Hall Inc. All rights reserved. 6- 11Cognitive Evaluation Theory: Cognitive Evaluation Theory Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation Major Implications for work rewards Intrinsic and extrinsic rewards are not independent Extrinsic rewards decrease intrinsic rewards Pay should be noncontingent on performance Verbal rewards increase intrinsic motivation; tangible rewards reduce it Self-concordance When the personal reasons for pursuing goals are consistent with personal interests and core values (intrinsic motivation), people are happier and more successful © 2009 Prentice-Hall Inc. All rights reserved. 6- 12 See E X H I B I T 6-4Locke’s Goal-Setting Theory: Locke’s Goal-Setting Theory Basic Premise: That specific and difficult goals, with self-generated feedback , lead to higher performance Difficult Goals: Focus and direct attention Energize the person to work harder Difficulty increases persistence Force people to be more effective and efficient Relationship between goals and performance depends on: Goal commitment (the more public the better!) Task characteristics (simple, well-learned) Culture (best match is in North America) © 2009 Prentice-Hall Inc. All rights reserved. 6- 13Implementation: Management by Objectives: MBO is a systematic way to utilize goal-setting. Goals must be: Tangible Verifiable Measurable Corporate goals are broken down into smaller, more specific goals at each level of organization. Four common ingredients to MBO programs: Goal specificity Participative decision making Explicit time period Performance feedback Implementation: Management by Objectives © 2009 Prentice-Hall Inc. All rights reserved. 6- 14 See E X H I B I T 6-5Bandura’s Self-Efficacy Theory: Bandura’s Self-Efficacy Theory An individual’s belief that he or she is capable of performing a task. Higher efficacy is related to: Greater confidence Greater persistence in the face of difficulties Better response to negative feedback (work harder) Self-Efficacy complements Goal-Setting Theory. © 2009 Prentice-Hall Inc. All rights reserved. 6- 15 See E X H I B I T 6-6 Given Hard Goal Higher Self-Set Goal Increased Confidence Higher PerformanceIncreasing Self-Efficacy: Increasing Self-Efficacy Enactive mastery Most important source of efficacy Gaining relevant experience with task or job “Practice makes perfect” Vicarious modeling Increasing confidence by watching others perform the task Most effective when observer sees the model to be similar to him- or herself Verbal persuasion Motivation through verbal conviction Pygmalion and Galatea effects - self-fulfilling prophecies Arousal Getting “psyched up” – emotionally aroused – to complete task Can hurt performance if emotion is not a component of the task © 2009 Prentice-Hall Inc. All rights reserved. 6- 16Reinforcement Theory: Similar to Goal-Setting Theory, but focused on a behavioral approach rather than a cognitive one. Behavior is environmentally caused Thought (internal cogitative event) is not important Feelings, attitudes, and expectations are ignored Behavior is controlled by its consequences – reinforcers Is not a motivational theory but a means of analysis of behavior Reinforcement strongly influences behavior but is not likely to be the sole cause Reinforcement Theory © 2009 Prentice-Hall Inc. All rights reserved. 6- 17Adams’ Equity Theory: Adams’ Equity Theory Employees compare their ratios of outcomes-to-inputs of relevant others. When ratios are equal: state of equity exists – there is no tension as the situation is considered fair When ratios are unequal: tension exists due to unfairness Underrewarded states cause anger Overrewarded states cause guilt Tension motivates people to act to bring their situation into equity © 2009 Prentice-Hall Inc. All rights reserved. 6- 18 See E X H I B I T 6-7Equity Theory’s “Relevant Others”: Can be four different situations: 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 Equity Theory’s “Relevant Others” © 2009 Prentice-Hall Inc. All rights reserved. 6- 19Reactions to Inequity: Reactions to Inequity Employee behaviors to create equity: Change inputs (slack off) Change outcomes (increase output) Distort/change perceptions of self Distort/change perceptions of others Choose a different referent person Leave the field (quit the job) Propositions relating to inequitable pay: Paid by time: Overrewarded employees produce more Underrewarded employees produce less with low quality Paid by quality: Overrewarded employees give higher quality Underrewarded employees make more of low quality © 2009 Prentice-Hall Inc. All rights reserved. 6- 20Justice and Equity Theory: Justice and Equity Theory © 2009 Prentice-Hall Inc. All rights reserved. 6- 21 See E X H I B I T 6-8 Overall perception of what is fair in the workplace. Vroom’s Expectancy Theory : Vroom’s Expectancy Theory The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual. © 2009 Prentice-Hall Inc. All rights reserved. 6- 22 See E X H I B I T 6-9 Expectancy of performance success Instrumentality of success in getting reward Valuation of the reward in employee’s eyesIntegrating Contemporary Motivation Theories: Integrating Contemporary Motivation Theories Based on Expectancy Theory © 2009 Prentice-Hall Inc. All rights reserved. 6- 23 See E X H I B I T 6-10 Global Implications: Global Implications Motivation theories are often culture-bound. Maslow’s Hierarchy of Needs Theory Order of needs is not universal McClelland’s Three Needs Theory nAch presupposes a willingness to accept risk and performance concerns – not universal traits Adams’ Equity Theory A desire for equity is not universal “Each according to his need” – socialist/former communists Desire for interesting work seems to be universal. There is some evidence that the intrinsic factors of Herzberg’s Two-Factor Theory may be universal 6- 24 © 2009 Prentice-Hall Inc. All rights reserved.Summary and Managerial Implications: Summary and Managerial Implications Need Theories (Maslow, Alderfer, McClelland, Herzberg) Well known, but not very good predictors of behavior Goal-Setting Theory While limited in scope, good predictor Reinforcement Theory Powerful predictor in many work areas Equity Theory Best known for research in organizational justice Expectancy Theory Good predictor of performance variables but shares many of the assumptions as rational decision making 6- 25 © 2009 Prentice-Hall Inc. All rights reserved.PowerPoint Presentation: All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright ©2009 Pearson Education, Inc. 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