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Flashcards in Chapter 16 Deck (83):
1

Motivation

The set of forces that cause people to behave in certain ways.
The goal of managers is to maximize desired behaviors and minimize undesirable behaviors.

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Determinants of Individual Performance

Motivation - The desire to do the job.
Ability - The capability to do the job.
Work environment - The resources to do the job.

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Historical Perspectives on Motivation

The Traditional Approach
The Human Relations Approach
The Human Resource Approach

4

The Traditional Approach

Frederick Taylor (Scientific Management)
Workers are interchangable tools of production
Assumptions
• Work is inherently unpleasant.

5

The Human Relations Approach

Emphasized the role of social processes in the workplace.
Assumptions
• Maintaining the appearance of employee participation is important.
• Managers know more than the worker.
• Economic gale (money) is the primary motivation for performance.

6

The Human Resource Approach

Emphasized value of employees to organization.
Assumptions
• Management’s job is to encourage participation and create a work environment that motivates employees.
• Employees want to and are able to make genuine contributions.

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Content Perspectives

Approaches to motivation that try to answer the question, “What factors in the workplace motivate people?”

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Content Perspectives of Motivation

Maslow’s Hierarchy of Needs
Aldefer’s ERG Theory
Herzberg’s Two-Factor Theory
McClelland’s Achievement, Power, and Affiliation Needs

9

The Need Hierarchy Approach

People must, in a hierarchical order, satisfy five groups of needs:
Physiological needs
Security needs
Belongingness needs
Esteem needs
Self-actualization needs

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Physiological needs

basic survival and biological function.

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Security needs

Seeking a safe physical and emotional environment.

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Belongingness needs

for love and affection.

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Esteem needs

For positive self-image/self-respect and recognition and respect from others.

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Self-actualization needs

Realizing one's potential for personal growth and development.

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Weakness of Maslow’s theory

Five levels of need are not always present.
Ordering or importance of needs is not always the same.
Cultural differences can impact the ordering and salience of work.

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Contributions of Maslow's Theory

Identified and categorized individual needs.
Emphasized importance of needs to motivation.

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The ERG Theory (Alderfer)

People’s needs are grouped into three overlapping categories—existence, relatedness, and growth.

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ERG Theory collapses Maslow’s hierarchy into three levels:

Existence needs
Relatedness needs
Growth needs

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Existence needs

Physiological and security needs.

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Relatedness needs

Belongingness and esteem by others.

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Growth needs

Encompass needs for self-esteem and selfactualization.

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ERG theory assumes that:

Multiple needs can be operative at one time (there is no absolute hierarchy of needs).
If a need is unsatisfied, a person will regress to a lower-level need and pursue that need (frustration-regression).

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The Two-Factor Theory (Herzberg)

People’s satisfaction and dissatisfaction are influenced by two independent sets of factors—motivation factors and hygiene factors.

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The Two-Factor Theory assumes

Job satisfaction and job dissatisfaction are on two distinct continuums:
• Motivational factors
• Hygiene factors
Motivation is a two-step process.
Ensuring that the hygiene factors are not deficient and not blocking motivation.
Giving employees the opportunity to experience motivational factors through job environment.

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Motivational factors

(work content)
Satisfaction to no satisfaction.

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Hygiene factors

(work environment)
Dissatisfaction to no dissatisfaction.

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Individual Human Needs (McClelland)

The need for achievement
The need for affiliation
The need for power

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The need for achievement

The desire to accomplish a goal or task more effectively than in the past.

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The need for affiliation

Need for affiliation is a desire for human companionship and acceptance.

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The need for power

The desire to be influential in a group and to be in control of one’s environment.

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Process Perspectives on Motivation

Expectancy Theory
The Porter-Lawler Extension of Expectancy Theory
Equity Theory
Goal-Setting Theory
Reinforcement Theory

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Process Perspectives

Approaches to motivation that focus on why people choose certain behavioral options to satisfy their needs and how they evaluate their satisfaction after they have attained their goals.

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Expectancy Theory

Motivation depends on how much we want something and how likely we are to get it.

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Expectancy Theory Assumes:

Behavior is determined by a combination of personal and environmental forces.
People make decisions about their own behavior in organizations.
Motivation leads to effort, when combined with ability and environmental factors, that results in performance which, in turn, leads to various outcomes that have value (valence) to employees.

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Elements of Expectancy Theory

Effort-to-Performance Expectancy
Performance-to-Outcome Expectancy
Valence

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Effort-to-Performance Expectancy

Effort will lead to a high level of performance.

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Performance-to-Outcome Expectancy

Performance will lead to a specific outcome.
The consequence or reward for behaviors.

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Valence

How much an individual values a particular outcome.
Attractiveness of the outcome to the individual.

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For motivated behavior to occur:

Both effort-to-performance expectancy and performance-to outcome expectancy probabilities must be greater than zero.
The sum of the valences must be greater than zero.

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The Porter-Lawler Extension of Expectancy
Theory Assumptions:

People will be more satisfied if performance in organization results in fair rewards.
High performance can lead to rewards and high satisfaction.

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The Porter-Lawler Extension of Expectancy
Theory Types of rewards:

Extrinsic rewards
Intrinsic rewards are outcomes that are internal to the individual (e.g., self-esteem and feelings of accomplishment).

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Equity Theory

People want social equity because of the rewards they received for performance.
Equity is an individual’s belief that the treatment he or she receives is fair relative to the treatment received by others.
Individuals view the value of rewards (outcomes) and inputs of effort as ratios and make subjective comparisons of themselves to other people.

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Equity Theory Conditions of and reactions to equity comparisons:

Feeling equitably rewarded.
Feeling under-rewarded—try to reduce inequity.
Feeling over-rewarded.

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Goal-Setting Theory Assumptions

Behavior is a result of goals.
Setting goals influence the behavior.

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Characteristics of Goals

Goal difficulty
Goal specificity
Acceptance
Commitment

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Reinforcement Theory

Rewards cause behavior to change or remain the same over time.

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Reinforcement Theory Assumptions:

Behavior that's rewarded is likely to be repeated.
Behavior that's punished is less likely to be repeated.

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Kinds of Reinforcement in Organizations

Positive reinforcement
Avoidance
Punishment
Extinction

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Providing Reinforcement in Organizations

Reinforcement schedules
Behavior modification (OB mod)

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Reinforcement schedules

Fixed interval schedule
Variable interval
Fixed ratio
Variable Ratio

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Fixed interval schedule

Reinforcement applied at fixed time intervals, regardless of behavior.

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Variable interval schedule

Reinforcement applied at various time intervals.

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Fixed ratio schedule

Reinforcement applied after a fixed number of behaviors, regardless of time.

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Variable Ratio schedule

Provide reinforcement after varying numbers or behaviors are performed, such as the use of compliments by a supervisor on an irregular basis.

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Behavior modification (OB mod)

Applying the basic elements of reinforcement theory in real life.
Specific behaviors are tied to specific forms of reinforcement.

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Popular Motivational Strategies

Empowerment and Participation
Techniques and Issues in Empowerment
New Forms of Working Arrangements

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Empowerment and Participation

Empowerment
Participation
Areas of Participation for Employees

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Empowerment

Enabling workers to set their own work goals, make decisions, and solve problems within their sphere of influence.

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Participation

The process of giving employees a voice in making decisions about their work.

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Areas of Participation for Employees

Making decisions about their jobs.
Decisions about administrative matters (e.g., work schedules).
Participating in decision making about broader issues of product quality.

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Techniques and Issues in Empowerment

Using work teams
Changing the overall method of organizing the firm by becoming more decentralized.

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Conditions necessary for empowerment:

Organization must be sincere about spreading power to lower levels.
Organization must be committed to empowering workers.
Organization must be prepared to increase its commitment to training.

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Variable Work Schedules

Compressed work schedule
Flexible work schedules (flextime)
Job sharing
Telecommuting

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Compressed work schedule

Working a full forty-hour week in less than five days.

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Flexible work schedules (flextime)

Work schedules in which employees have some control over the hours they choose to work; also called flextime.

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Job sharing

when two part-time employees share one fulltime job.

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Telecommuting

Allowing employees to spend part of their
time working off-site, usually at home, by using e-mail, the Internet, and other forms of information technology.

68

Reward System

The formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded.

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Effects of Organizational Rewards

Effect of Rewards on Attitudes
Effect of Rewards on Behaviors
Effect of Rewards on Motivation

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Effect of Rewards on Attitudes

Job satisfaction is affected by employee satisfaction with intrinsic and extrinsic rewards.

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Effect of Rewards on Behaviors

Extrinsic rewards affect employee satisfaction and reduce turnover.
Employees tend to work harder for rewards based on performance.

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Effect of Rewards on Motivation

Employees will work harder when performance will be measured.

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Merit Reward Systems

Base a meaningful portion of individual compensation on merit—the relative value of an individual’s contributions to the organization.

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Incentive Reward Systems

Employee pay is based on employee output.
Incentive pay plans
Piece-rate systems
Sales commissions

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Incentive Reward Systems Assumes:

Performance is under control of individual worker.
Employee works at a single task continuously.
Pay is tightly tied to performance (i.e., pay varies with output).

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Team and Group Incentive Reward Systems

Gain sharing
Profit sharing
Employee Stock Ownership Programs (ESOPs)

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Gain sharing

Is group based, and all members get bonus when predetermined levels are exceeded. Aligns employee and corporate interests.

78

Profit sharing

At the end of the year some portion of the company's profits is paid into a profit-sharing pool that is then distributed to all the employees.

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Employee Stock Ownership Programs (ESOPs)

Gradually grant stock ownership of the firm to employees as a reward.

80

Executive Compensation

Standard Forms of Executive Compensation
Special Forms of Executive Compensation
Criticism of Executive Compensation

81

Standard Forms of Executive Compensation

Base salary
Incentive pay (bonuses)

82

Special Forms of Executive Compensation

Stock option plans
Executive perks

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Criticism of Executive Compensation

Excessively large compensation amounts.
Compensation not tied to overall and long-term performance of the organization.
Earnings gap between executive pay and typical employee pay