Problem Set #3 - Paper Answers

1. List and describe different variable-pay programs. Be sure to include piece-rate plans, profit-sharing plans, and gainsharing

2. Evaluate variable-pay programs in terms of their impact on motivation and productivity

3. Discuss Maslow’s hierarchy of needs including the types of needs and how they become dominant.

The assignment is to answer the question provided above in essay form. This is to be in narrative form. Bullet points should not to be used. The paper should be at least 1.5 – 2 pages in length, Times New Roman 12-pt font, double-spaced, 1 inch margins and utilizing at least one outside scholarly or professional source related to organizational behavior. This does not mean blogs or websites. This source should be a published article in a scholarly journal. This source should provide substance and not just be mentioned briefly to fulfill this criteria. The textbook should also be utilized. Do not use quotes. Do not insert excess line spacing. APA formatting and citation should be used.

Essentials of Organizational Behavior

Fourteenth Edition

Chapter 6

Perception and Individual Decision Making

After studying this chapter you should be able to:
Explain the factors that influence perception.
Describe attribution theory.
Explain the link between perception and decision making.
Contrast the rational model of decision making with bounded rationality and intuition.
Explain how individual differences and organizational constraints affect decision making.
Contrast the three ethical decision criteria.
Describe the three-stage model of creativity.

Perception
Perception: A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment
The world as it is perceived is the world that is behaviorally important

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Perception is the way people organize the massive amounts of information they receive into patterns that give it meaning. People will use their perceptions of reality, not reality itself, to decide how to behave.
3

Factors Influencing Perception

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
There are many factors that influence people’s perceptions. The factors are either in the perceiver, such as attitudes and experience; in the situation, such as social setting and time; or in the target, such as sounds, size, or background.
4

Perception

Situation

Perceiver

Target

Person Perception: Attribution Theory
Attribution Theory: Suggests that perceivers try to “attribute” the observed behavior to a type of cause:
Internal – behavior is believed to be under the personal control of the individual
External – the person is forced into the behavior by outside events/causes

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The attribution theory helps us to understand our perceptions about others. Research has shown that our perceptions about others are based upon the assumptions we make about them. The attribution theory says that when we observe behavior we try to determine if it is internally or externally driven. If it is internally driven, than it is under the person’s control, whereas external causes are not under the individual’s control.
5

Determinants of Attribution
Distinctiveness – whether an individual displays different behaviors in different situations (the uniqueness of the act)
Consensus – does everyone who faces a similar situation respond in the same way as the individual did?
Consistency – does the person respond the same way over time?

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
We can use three factors to help us decide if behavior is internally or externally controlled: distinctiveness, consensus, consistency. Distinctiveness shows different behaviors in different situations. Consensus looks at the response and compares it to others in the same situation to see if it is consistent with the behaviors of others. Consistency looks to see if the response is the same over time.
6

Attribution Theory

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
This chart looks at the elements of the attribution theory and helps us to make the connection between external or internal driven factors.
7

Attribution Errors and Biases
Fundamental attribution error:
Tendency to underestimate the influence of external factors and overestimate that of internal factors
Self-serving bias: Occurs when individuals overestimate their own (internal) influence on successes and overestimate the external influences on their failures
The basic process of attribution applies across cultures, but Western cultures tend to be more individualist, while Asian cultures are more group oriented

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
There are errors and biases in the attributions we make. First, we often tend to underestimate the influence of external factors and overestimate the influence of internal factors. This is called the fundamental attribution error. The next common error is the self-serving bias. This bias exists when individuals attribute their own successes to internal factors and blame external factors when they don’t have success.
Culture plays a role in the attributions people make. Western cultures tend to focus on the individual, while Asian cultures are more group oriented.
8

Shortcuts Used in Judging Others
Selective Perception: A perceptual filtering process based on interests, background, and attitude
Halo Effect: Drawing a general impression based on a single characteristic
Contrast Effects: Our reaction is influenced by others we have recently encountered (the context of the observation)
Stereotyping: Judging someone on the basis of the perception of the group to which they belong

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
There are some frequently used shortcuts in judging others. People will utilize past experience, their attitudes, and their interests to interpret information on their own biases, often misperceiving the situation.
Judgment can also utilize the halo effect, where individuals draw generally favorable impressions about an individual using a single characteristic.
Contrast effects occur when we are making judgments about an individual and comparing them to other individuals we have recently encountered.
Stereotyping is when we judge someone on the basis of perception of the group to which he or she belongs.
9

The Link Between Perception and Decision Making
Decision making occurs as a reaction to a perceived problem
Perception influences:
Awareness that a problem exists
The interpretation and evaluation of information
Bias of analysis and conclusions

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
In organizational behavior we are concerned with how decisions are made and perceptions play a significant role in that process. Often decision making occurs as a reaction to a problem or a perceived discrepancy between the way things are and they way we would like them to be. A decision is then made based on various alternatives that have been developed from the data collected. Perception influences this entire process from problem recognition to data selection to alternative chosen.
10

Rational Decision-Making Model
Rational decision-making model
Define the problem
Identify the decision criteria
Allocate weights to the criteria
Develop the alternatives
Evaluate the alternatives
Select the best alternative
This model is seldom actually used: it’s more of a goal than a practical method

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Decision making is done by individuals but occurs in organizations. There are some models that can help us in thinking through decision making in organizations. The first is the rational decision-making model.
The steps are outlined in this slide. Although this is a good model, it is more of a goal than a practical method.
11

Bounded Rationality
The limited information-processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize
People seek solutions that are satisfactory and sufficient, rather than optimal (they “satisfice”)
Bounded rationality is constructing simplified models that extract the essential features from problems without capturing all their complexity

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The second model, bounded reality, represents more of the real world where it seeks solutions that are the best given the information that is available. Basically, bounded rationality constructs simplified models that identify the essential features from problems without getting into all their complexity.
12

Decision Making in Bounded Rationality
Simpler than rational decision making, decision making under bounded rationality is composed of three steps:
Limited search for criteria and alternatives – familiar criteria and easily found alternatives
Limited review of alternatives – focus on alternatives, similar to those already in effect
Satisficing – selecting the first alternative that is “good enough”

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
This slide details the three key steps in bounded rationality decision making which makes it a much more simple process than the rational decision-making model.
13

Intuitive Decision Making
Intuitive decision making: A non-conscious process created out of distilled experience
Increases with experience
Can be a powerful complement to rational analysis in decision making

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The third model is based on intuition. This is the non-conscious process that occurs as a result of experiences that result in quick decisions.
14

Common Biases and Errors
Overconfidence Bias: As managers and employees become more knowledgeable about an issue, the less likely they are to display overconfidence
Anchoring Bias: A tendency to fixate on initial information and fail to adequately adjust for subsequent information
Confirmation Bias: Seeking out information that reaffirms our past choices and discounting information that contradicts past judgments
Availability Bias: Basing judgments on readily available information

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
There are many biases and errors that occur in the decision-making process. The overconfidence bias is when an individual believes too much in his own ability to make good decisions. The anchoring bias is when an individual makes decisions based on the information received first and not on the new information received. The next error often made is with the confirmation bias where, during the decision-making process, the individual uses only facts that support his decision. Availability bias involves emphasizing information that is more readily at hand, information that is recent and vivid.
15

More Biases and Errors
Randomness Error: Our tendency to believe we can predict the outcome of random events
Escalation of Commitment: Staying with a decision even when there is clear evidence that it is wrong
Risk Aversion: Preferring a sure thing over a risky outcome
Hindsight Bias: Believing falsely that we could have predicted the outcome of an event after that outcome is already known

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Some additional decision-making errors include the escalation of commitment error which occurs when there is an increasing commitment to a decision in spite of evidence that it is the wrong decision. Randomness error refers to our tendency to think we have some control over our world.
Risk aversion is when the decision maker has a tendency to prefer a sure thing over a risky outcome. The hindsight bias occurs after an outcome is already known and then believing it could have been accurately predicted beforehand.
16

Individual Differences on Decision Making
Personality
Gender
General mental ability
Cultural differences
Nudging

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
There are many individual differences, including those based on personality, gender, general mental ability, cultural differences, and nudging that influence decision making and create deviations from the rational model defined earlier.
17

Organizational Constraints on Decision Making
Performance evaluations
Reward systems
Formal regulations
System-imposed time constraints
Historical precedents

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
There are many organizational constraints to good decision making that create deviations from the rational model defined earlier. Managers shape their decisions on performance evaluations, reward systems, and formal regulations. They also base decisions on system-imposed time constraints and historical precedents. All these factors may influence the decisions that are made.
18

Ethical Frameworks for Decision Making
Utilitarianism
Provide the greatest good for the greatest number
Rights
Make decisions consistent with fundamental liberties and privileges
Justice
Impose and enforce rules fairly and impartially so that there is equal distribution of benefits and costs

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Ethics should play a role in decision making. There are three ethical criteria that influence decisions. The first is utilitarianism, where the decisions are based on the outcome of the solution. The outcome is analyzed based on seeking the greatest good for the greatest number of people and is the dominant method for businesspeople. The second criterion is rights, where decisions are based on fundamental liberties and privileges in an attempt to protect the basic rights of individuals. The final criterion is justice, where the decision imposes rules in a fair and impartial manner and equitably distributes benefits and costs.
19

Behavioral Ethics
Behavioral ethics
Analyzing how people actually behave when confronted with ethical dilemmas

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Researchers have been exploring the field of behavioral ethics which looks at how people behave when they are confronted with ethical dilemmas. Studies show that we don’t always follow the ethical standards promoted by our organizations and sometimes also violate our own standards.
20

Creativity in Organizations
Creativity: The ability to produce novel and useful ideas
Helps people:
See problems others can’t see
Better understand the problem
Identify all viable alternatives
Identify alternatives that aren’t readily apparent

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Better decisions are those that incorporate novel and useful ideas, or creativity. An organization will tend to make better decisions when creative people are involved in the process. So it is important to identify people who have that creative potential. Some of the methods and theories identified in earlier chapters can help in this process. For example, those who score high in openness to experience tend to be more creative.
21

Three-Stage Model of Creativity

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The core of the model is creative behavior, which has both causes and effects.
22

Creative Behavior
Steps:
Problem formulation: identify a problem or opportunity that requires a solution as yet unknown
Information gathering: possible solutions incubate in an individual’s mind
Idea generation: develop possible solutions from relevant information and knowledge
Idea evaluation: evaluate potential solutions and identify the best one

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Creative behavior occurs in four steps, each of which leads to the next. Problem formulation, information gathering, idea generation, and idea evaluation.
23

Causes of Creative Behavior
Cause of creative behavior:
Intelligence
Personality
Expertise
Ethics
Creative environment
Motivation
Rewards and recognition

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Smart people tend to be more creative because they are better at solving problems. Creative people also tend to be open to experience, have proactive personalities, self-confidence, a tolerance for ambiguity, and a willingness to take risks. Expertise is the single most important predictor of creativity. Ethics and creativity are not correlated – in fact, people who cheat may actually be more creative. If you aren’t motivated to be creative, it is unlikely you will be. Organizations need to foster the free flow of ideas. Freedom from excessive rules encourages creativity.
24

Creative Outcomes
Creative outcomes: ideas or solutions judged to be novel and useful by relevant stakeholders

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Off-the-wall solutions are creative only if they help solve the problem.
Creative ideas do not implement themselves; translating them into creative outcomes is a social process that requires utilizing other concepts addressed in the text.
25

Implications for Managers
Behavior follows perception, so to influence employee behavior at work, assess how employees perceive their work.
Make better decisions by recognizing perceptual biases and decision-making errors we tend to commit.
Adjust your decision-making approach to the national culture you’re operating in and to the criteria your organization values.
Combine rational analysis with intuition.
Try to enhance your creativity.

Essentials of Organizational Behavior

Fourteenth Edition

Chapter 8

Motivation: From Concepts to Applications

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
After studying this chapter you should be able to:
Describe how the job characteristics model (JCM) motivates by changing the work environment.
Compare the main ways that jobs can be redesigned.
Explain how specific alternative work arrangements can motivate employees.
Describe how employee involvement measures can motivate employees.
Demonstrate how the different types of variable-pay programs can increase employee motivation.
Show how flexible benefits turn benefits into motivators.
Identify the motivational benefits of employee recognition programs.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Motivating by Job Design: The Job Characteristics Model
Job characteristics model: jobs are described in terms of five core dimensions:
Skill variety
Task identity
Task significance
Autonomy
Feedback

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The job characteristics model looks at describing any job in terms of five core job dimensions. These job dimensions include skill variety, which is the degree to which the job incorporates a number of different skills and talents. Task identity is another dimension that looks at the degree to which the job requires the completion of a whole and identifiable piece of work. Task significance is included and looks at how the job impacts the lives of others. Autonomy, the fourth dimension, identifies how much freedom and independence workers have over their jobs. And finally, feedback is how much the job generates direct and clear information about the worker’s performance.
3

The Job Characteristics Model

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Much evidence supports the JCM concept that the presence of a set of job characteristics—variety, identity, significance, autonomy, and feedback—does generate higher and more satisfying job performance.
4

Designing Motivational Jobs
JCM-designed jobs give internal rewards
Individual’s growth needs are moderating factors
Motivating jobs must:
Be autonomous
Provide feedback
Be meaningful

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
JCM creates motivational jobs, as they are designed to give internal rewards. Positive outcomes are moderated by individual growth needs, as each individual will respond differently. In order for the jobs to increase motivation, there should be a high degree of autonomy, feedback, and a least one meaningfulness factor such as significance, identity, or variety. Note that because the JCM is relatively individualistic, job enrichment strategies might not have the same effect in collectivistic cultures as they do in individualistic cultures like the United States.
5

Redesigning Jobs: Job Rotation
Job Rotation
The periodic shifting of an employee from one task to another
Also called cross-training
Increases job satisfaction and organizational commitment

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
There are some helpful ways to redesign a job to increase the motivation of the employees. In job rotation, which is also called cross-training, an organization will shift the employee to different tasks with similar skill requirements but all at the same organizational level.
Research shows that job rotation increases job satisfaction and organizational commitment. However, it can decrease the efficiency of decision making, increase training costs, reduce overall productivity, and require more involvement from supervisors.
6

Redesigning Jobs: Relational Job Design
Relational Job Design
Designing work so employees are motivated to promote the well-being of the organization’s beneficiaries
Relate stories from customers who have benefited from the company’s products or services
Connect employees directly with beneficiaries

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Contemporary research is focusing on how to make jobs more prosocially motivating to people. In other words, how can managers design work so employees are motivated to promote the well-being of the organization’s beneficiaries – their customers, clients, patients, or employees?
7

Using Alternative Work Arrangements to Motivate
Flextime
Some discretion over when worker starts and leaves
Job Sharing
Two or more individuals split a traditional job
Telecommuting
Work remotely at least two days per week

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
There are some alternative work arrangements that have been successful in helping increase the motivation of workers. These arrangements give workers more control over their work and thereby can increase their level of motivation. An example of this is flextime. Flextime is short for flexible work hours and allows workers to choose what hours they work within a set time period. So, for example, if the worker needs to work 8 hours a day, the manager may say he or she can choose 8 hours between 6am and 8pm. That flexibility may allow a mom to be home when her kids are coming home from school. Flextime has become popular both within and outside the United States.
Another alternative work arrangement is job sharing, where two workers split a job and each works part time. This is becoming more popular in Japan where it allows employers to avoid layoffs due to overstaffing.
Telecommuting is another alternative work arrangement that has been utilized. This allows employees to work from home at least 2 days a week.
8

Employee Involvement
Employee involvement: A participative process that uses the input of employees to increase their commitment to the organization’s success
Two types:
Participative management
Representative participation

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Employee involvement is defined as a participative process that uses employees’ input to increase their commitment to the overall success of the organization. Depending on the country involved, it may be necessary to modify employee involvement programs to reflect the local culture. Some examples of programs that help with employee involvement are participative management and representative participation.
9

Participative Management
Participative management: Subordinates share a significant degree of decision-making power with superiors
To be effective:
Followers must have confidence and trust in leaders
Leaders should avoid coercion and stress organizational consequences of decisions
Only a modest influence on productivity, motivation, and job satisfaction

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Participative management occurs when managers include employees in the decision-making process.
Participative management has, at times, been considered a panacea for poor morale and low productivity. In reality, for participative management to be effective, followers must have trust and confidence in their leaders. Leaders should refrain from coercive techniques and instead stress the organizational consequences of decisions to their followers.
This type of employee involvement program has shown itself to have limited impact on productivity, motivation, and job satisfaction.
10

Representative Participation
Representative participation: Workers are represented by a small group of employees who participate in decisions affecting personnel
Works councils
Board membership
Redistribute power within an organization
Does not appear to be very motivational

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Representative participation tries to redistribute power by putting labor on a more equal footing with the interests of managers and stockholders. This is achieved by letting workers be represented by small groups of employees who participate in decisions. Nearly every country in Western Europe requires companies to practice representative participation.
11

Using Pay to Motivate Employees
Major strategic rewards decisions:
What to pay employees
How to pay individual employees

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
As we saw in previous chapters, money is not the primary driver for job satisfaction. However, it does motivate individuals, and companies often underestimate its impact in keeping top talent.
It is critical to figure out what to pay and to establish a pay structure that makes sense for your industry and organization. Then it is imperative that the organization utilizes this pay system and applies it to the pay of individual employees.
12

What to Pay
Establishing a pay structure
Balance between:
Internal equity – the worth of the job to the organization
External equity – the external competitiveness of an organization’s pay relative to pay elsewhere in its industry
A strategic decision with trade-offs

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Setting pay levels can be complex and requires a balance of internal and external pay equity. Internal equity looks at the worth of the job to the organization and compares it with what others are making within the organization. External equity looks at external competitiveness of an organization’s pay relative to pay elsewhere.
13

How to Pay
Variable-Pay Programs
Base a portion of the pay on a given measure of performance
Piece-rate pay plan
Merit-based pay
Bonuses
Profit-sharing plans
Employee-stock ownership plan (ESOP)

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Some types of variable-pay programs include piece-rate, merit-based, bonuses, profit-sharing, and employee-stock ownership plans. Globally, about 80 percent of companies offer some type of variable-pay plan.
14

Variable-Pay Programs
Piece-Rate Pay: workers are paid a fixed sum for each unit of production completed
Merit-Based Pay: pay is based on individual performance appraisal ratings
Bonuses: rewards employees for recent performance
Employee Stock Ownership Plans (ESOPs) – plans in which employees acquire stock, often at below-market prices

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Some types of variable-pay programs include piece-rate, merit-based, bonuses, and skill-based pay. Piece-rate pay plans pay a fixed amount of money for each unit of production. Merit-based pay plans are similar, paying based on performance. However, it is not necessarily tied to production because in some jobs, output is not as easy to measure. Bonuses are another method that is becoming increasingly popular. Bonuses are a lump sum at the end of a set period of time. The amount of the bonus is typically dependent upon the performance of the individual or the organization or some combination of both. Finally, ESOPs are a method used to motivate the employees toward the organizational goals. As part of their benefits package they are able to earn or purchase company stock, often at below-market rates. This encourages them to work toward the overall profitability of the organization, as they have ownership in it and will gain as the company gains.
It is important to remember that while it is often thought that pay increases productivity, it is not true that everyone responds positively to variable-pay plans.
15

Using Benefits to Motivate
Benefits are both an employee provision and an employee motivator
Individual employees value the components of benefits packages differently
A flexible benefits program turns the benefits package into a motivational tool

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Flexible benefits allow employees choices between different benefits. This allows them to customize their options and create a plan that best meets their needs and situation. This increases their motivation because they realize the organization has their best interest in mind.
16

Using Intrinsic Rewards to Motivate
Employee recognition programs
Can be as simple as a spontaneous comment
Can be formalized in a program
Recognition is the most powerful workplace motivator – and the least expensive – but fairness is important

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
A method of motivation that has been highly successful is employee recognition programs. This idea recognizes the importance of coupling extrinsic and intrinsic methods to help motivate employees. Recognition is an intrinsic motivation technique that can range from giving an employee the proverbial pat on the back to a more public recognition ceremony. Recognition programs are highly effective and cost very little to administer. There are critics of such programs, however, who say that they can be politically motivated and if the perception is that they are applied unfairly, they can cause more harm than good.
17

Implications for Managers
Recognize individual differences
Use goals and feedback
Allow employees to participate in decisions that affect them
Link rewards to performance
Check the reward system for equity

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The motivational theories presented in this chapter and the last chapter set forth the following overarching ideas. It is important to recognize individual differences when designing and applying motivational programs. Managers will get better results if they use goals and feedback and allow employees to participate in the decisions that impact them. Finally, by linking rewards to performance and making sure the system is equitable, better results will follow.
18

Essentials of Organizational Behavior

Fourteenth Edition

Chapter 7

Motivation Concepts

After studying this chapter you should be able to:
Describe the three key elements of motivation.
Compare the early theories of motivation.
Contrast the elements of self-determination theory and goal-setting theory.
Demonstrate the differences between self-efficacy theory, reinforcement theory, equity theory, and expectancy theory.
Identify the implications of employee job engagement for managers.
Describe how the contemporary theories of motivation complement one another.

What Is Motivation?
Motivation: The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining an organizational goal
Intensity: the amount of effort put forth to meet the goal
Direction: efforts are channeled toward organizational goals
Persistence: how long the effort is maintained

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
It is easy to see that some individuals are more motivated than others. However, the reasons for that motivation are more difficult to determine. When defining motivation, it is important to look at the interaction between the individual and the situation. There are three key elements that help us define motivation. The first is intensity, or how hard the person tries to accomplish the task. The second is direction, or the effort that is channeled toward organizational goals. The final element is persistence, or how long a person can maintain the effort.
3

Early Theories of Motivation
Maslow’s Hierarchy of Needs Theory
Herzberg’s Two-Factor (Motivation-Hygiene) Theory
McClellan’s Theory of Needs (Three Needs Theory)

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
There are a number of theories of motivation that help us gain a better understanding of the concept. Some of the earlier theories are not entirely valid anymore, but they are still used by many managers.
4

Hierarchy of Needs Theory (1 of 2)

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The Hierarchy of Needs Theory was developed by Abraham Maslow in the 1950s. His theory states that with every individual there is a hierarchy of five needs. As each need is met or satisfied, the next need becomes dominant. His theory posits that individuals are stuck in their existing need level until it is satisfied, and then they can move on to the next level. For example, until their safety needs are met they will not be able to move on to the social level. The organization of these need levels may vary across cultures.
5

Two-Factor Theory
Not Dissatisfied
Dissatisfied
Satisfied
Not Satisfied
Quality of supervision
Pay
Company policies
Physical working conditions
Relationships
Job security
Hygiene Factors
Promotional opportunities
Opportunities for personal growth
Recognition
Responsibility
Achievement
Motivation Factors

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Herzberg’s Two-Factor theory is another one of the earlier developed theories. This theory sets forth that satisfaction and dissatisfaction are not opposites, but two separate ideas. There is a set of factors that when present will help to avoid dissatisfaction in workers. This elements of this group are called hygiene factors and include such things as salary, working conditions, and company policies. There is another set of factors that will help to cause satisfaction in workers. The elements of this group are called motivators and include things such as growth, responsibility, and achievement. These sets are distinct, and the presence of hygiene factors does not cause satisfaction; it just helps avoid dissatisfaction.
6

Hierarchy of Needs Theory (2 of 2)

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The opposite of “satisfaction” is “no satisfaction,” and the opposite of “dissatisfaction” is “no satisfaction.”
7

McClelland’s Theory of Needs
Need for Achievement (nAch)
The drive to excel
Need for Power (nPow)
The need to make others behave in a way they would not have behaved otherwise
Need for Affiliation (nAff)
The desire for friendly and close interpersonal relationships

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The final earlier theory of needs we will look at is McClelland’s need theory. He bases his theory on the idea that people are motivated in the workplace by three main needs. The first need is the need for achievement or the drive to excel in relation to a set of defined standards. The second is the need for power, to make others behave in a way that they would not have behaved otherwise. The final need addressed in this theory is the need for affiliation. Affiliation looks at the relationship aspect and the desire for close relationships. People will have varying levels of these needs, which makes this theory difficult to measure.
8

McClelland’s High Achievers
High achievers prefer jobs with:
Personal responsibility
Feedback
Intermediate degree of risk (50/50)
High achievers are not necessarily good managers
High nPow and low nAff is
related to managerial success

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The need that has received the most attention by researchers is the need for achievement. Achievers will carefully measure the odds and try to take on activities that are challenging, but not too high risk. They tend to be motivated in jobs that are more individualistic in nature and provide regular and effective feedback.
Achievers tend to not make good managers because they have more of a personal focus. Strong managers have a higher level of need for power and a lower level of need for affiliation as they are trying to motivate a team to move toward a given direction.
The view that a high achievement need acts as an internal motivator presupposes two cultural characteristics – willingness to accept a moderate degree of risk and concern with performance. This combination is found in Anglo-American countries such as the United States, Canada, and Great Britain, and much less in more collectivistic societies like Chile and Portugal.
Of the early theories on motivation, McClelland’s theory has the best research support, but it has less practical effect than the others.
9

Contemporary Theories of Motivation
Self-Determination Theory
Goal-Setting Theory
Management by Objectives

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
There are a number of contemporary theories of motivation that have utilized the older theories to provide us with a deeper understanding of motivation in the workplace.
10

Self-Determination Theory
Self-determination theory: People prefer to have control over their actions so when they feel they are forced to do something they previously enjoyed, motivation will decrease
Cognitive evaluation theory: Proposes that the introduction of extrinsic rewards for work (pay) that was previously intrinsically rewarding tends to decrease overall motivation
Self-concordance: Considers how strongly people’s reasons for pursuing goals are consistent with their interests and core values

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The self-determination theory states that people prefer to have control over their actions. So, anything that makes a previously enjoyed task feel more like an obligation than a freely chosen activity will diminish their motivation.
Cognitive evaluation theory sets forth that in the workplace intrinsic and extrinsic rewards are not independent of one another. In fact, the presence of extrinsic rewards may decrease the intrinsic rewards. In addition to extrinsic rewards, managers need to realize the importance of using goal setting and verbal rewards as a method to increase motivation.
Self-concordance considers how strongly people’s reasons for pursuing goals are consistent with their interests and core values. Across cultures, if individuals pursue goals because of intrinsic interest, they are more likely to attain goals, are happier when they do, and are happy even when they do not.
11

Goal-Setting Theory
Goals increase performance when goals are:
Specific
Difficult, but accepted by employees
Accompanied by feedback: self-generated feedback is best
Contingencies in goal-setting theory
Goal commitment: public goals better
Task characteristics: simple and familiar is better
National culture: Western culture suits best

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Edwin Locke developed what is called the goal-setting theory. The idea behind this theory is that goals that are specific and effectively difficult can lead to higher performance if they include self-generated feedback. A difficult goal will help the individual to focus and direct attention as well as energize them to work harder. The difficulty of the goal will increase persistence and force people to be more effective and efficient.
The relationship between goals and performance depends on how committed the individual is to the goal as well as how specific the tasks are. Most of the research has been done in the United States so the applicability of this theory to other cultures is suspect.
12

Management by Objectives
Management by objectives (MBO): Converts overall organizational objectives into specific objectives for work units and individuals
Common ingredients:
Goal specificity
Explicit time period
Performance feedback
Participation in decision making

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
An implementation of the goal-setting theory is Management by Objectives, better known as MBO. MBO is a systematic way to utilize goal-setting theory in which goals are set jointly by managers and employees. The goals must be tangible, verifiable, and measurable in order to be effective. The manager helps to break down the organizational goals into smaller, more specific goals for the employee. In order for MBO to be effective, the goals must be specific, the employees must participate in the goal setting, there must be a defined time period, and feedback must be incorporated into the process.
13

Cascading of Objectives

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
This exhibit shows the organization’s overall objectives translated into specific objectives for each level (divisional, departmental, individual).
14

Other Contemporary Theories of Motivation
Self-Efficacy Theory
Reinforcement Theory
Equity Theory
Organizational Justice
Expectancy Theory

Self-Efficacy Theory (1 of 2)
Self-efficacy theory: An individual’s belief that he or she is capable of performing a task
Also known as social cognitive theory or social learning theory
Self-efficacy increased by:
Enactive mastery: gain experience
Vicarious modeling: see someone else do the task
Verbal persuasion: someone convinces you that you have the skills
Arousal: get energized

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Another theory of motivation is the self-efficacy theory developed by Albert Bandura. This theory is based on an individual’s belief that he or she is capable of performing a task. This theory is a complement to the goal-setting theory, as it incorporates goals into the process. Higher efficacy is related to greater confidence, greater persistence in the face of difficulties, and responding to negative feedback by working harder, not shutting down.
16

Self-Efficacy Theory (2 of 2)

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Goal-setting theory and self-efficacy theory don’t compete; they complement each other. As this exhibit shows, employees whose managers set difficult goals for them will have a higher level of self-efficacy and set higher goals for their own performance. Why? Setting difficult goals for people communicates your confidence in them.
17

Reinforcement Theory
Reinforcement theory: Behavior is a function of consequences
Operant conditioning theory
Behaviorism
Social- learning theory and reinforcement

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
In contrast to goal setting, reinforcement theory suggests that behavior is a function of consequences. Reinforcement strengthens a behavior and increases the chances it will be repeated. The most relevant component of reinforcement theory, is operant conditioning theory which argues that people learn to behave a certain way to either get something they want or to avoid something they don’t want.
The view that we can learn by observing and direct experience is called social-learning theory.
18

Equity Theory (1 of 2)
Equity theory: Employees weigh what they put into a job situation (input) against what they get from it (outcome)
They compare their input-outcome ratio with the input-outcome ratio of relevant others

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Adam’s equity theory utilizes the perception theory that we looked at in previous chapters. The idea is that employees compare their ratios of outcomes to inputs of others they see as relevant. When they see the ratios as equal, there is a perceived state of equity and no tension arises. However, when they perceive the ratios to be unequal, they may experience anger or guilt depending on the result of the equity analysis, and then tension can arise. This tension can motivate people to act in a way that brings the situation into a more equitable state.
19

Equity Theory (2 of 2)
Equity theory suggests employees who perceive inequity will make one of six choices:
Change inputs
Change outcomes
Distort perceptions of self
Distort perceptions of others
Choose a different referent
Leave the field

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Some of these propositions have been supported, but others haven’t. First, inequities created by overpayment do not seem to significantly affect behavior in most work situations. Second, not everyone is equity-sensitive.
20

Model of Organizational Justice

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Increasingly, we think of equity as organizational justice, a larger perception of what is fair in the workplace. Employees perceive their organizations as just when they see that what they receive matches what they have put in.
One key element of organizational justice is distributive justice. Employees tend to perceive their outcomes are fairest when they are distributed equitably. Procedural justice examines the perceived fairness of the process used to determine the distribution of rewards.
Beyond outcomes and procedures, research shows that employees care about two other forms of fairness that have to do with the way they are treated during interactions with others.
The first type is informational justice, which reflects whether managers provide employees with explanations for key decisions and keep them informed of important organizational matters.
The second type is interpersonal justice, which reflects whether employees are treated with dignity and respect.
These three components make up an individual’s view of justice within the organization.
Equity theory is popular in the United States because U.S. style reward systems assume that employees are highly sensitive to equity in reward allocation. Research shows, however, that in other cultures inputs and outputs may be valued differently. Managers need to determine what is considered “fair” in a particular culture. Managers need to be transparent, consistent, and unbiased in their decision making.
21

Expectancy Theory (1 of 2)
Three key relationships:
Effort-performance: perceived probability that exerting effort leads to successful performance
Performance-reward: the belief that successful performance leads to desired outcome
Rewards-personal goals: the attractiveness of organizational outcome (reward) to the individual

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The most commonly used and widely accepted theory of motivation is Victor Vroom’s Expectancy Theory. This theory argues that the strength of a tendency to act in a certain way is dependent on the strength of the expectation that they will receive a given outcome and that the outcome is desired.
Employees are willing to work harder if they believe that their actions will get them an outcome they desire. For example, employees are willing to work long and hard hours if they know that they will be rewarded through promotion, recognition, or pay in response to their hard work.
22

Expectancy Theory (2 of 2)

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Expectancy theory helps explain why a lot of workers aren’t motivated on their jobs and do only the minimum necessary to get by.
Questions employees need to answer in the affirmative if their motivation is to be maximized:
If I give a maximum effort, will it be recognized in my performance appraisal?
If I get a good performance appraisal, will it lead to organizational rewards?
If I’m rewarded, are the rewards attractive to me?
23

Job Engagement
Job Engagement: The investment of an employee’s physical, cognitive, and emotional energies into job performance
Organizations where employees are highly engaged have:
Higher levels of productivity
Fewer safety incidents
Lower turnover

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Research shows that highly successful organizations tend to have more engaged employees than average organizations. Highly engaged employees believe it is meaningful to work, are inspired by their leaders, and have similar values to those of the organization.
24

Integrating Theories

Implications for Managers
Make sure extrinsic rewards for employees are not viewed as coercive, but instead provide information about competence and relatedness.
Consider goal-setting theory. Clear and difficult goals often lead to higher levels of employee productivity.
Consider reinforcement theory regarding quality and quantity of work, persistence of effort, absenteeism, and accident rates.
Consult equity theory to help understand productivity, satisfaction, absence, and turnover variables.
Expectancy theory offers a powerful explanation of performance variables such as employee productivity, absenteeism, and turnover.

Turn in your highest-quality paper
Get a qualified writer to help you with

“ Problem Set #3 ”

Get high-quality paper

NEW! AI matching with writer

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order