CHAP 10: MANAGING EMPLOYEE MOTIVATION AND PERFORMANCE

A. THE NATURE OF MOTIVATION

Motivation: The set of forces that cause people to behave in certain ways
Determinants of individual performance: Motivation, Ability, Work environment
 Motivation is only 1 in 3 determinants

B. CONTENT PERSPECTIVES ON MOTIVATION

Content perspectives: Approach to motivation that tries to answer the question “What
factors motivate people?”
Focus on needs and need deficiencies of individuals
1. The Needs Hierarchy Approach: Maslow’s hierarchy of needs

- Physiological: attending to basic survival and biological functions

- Security: Seeking a safe physical and emotional environment.
- Belongingness: Experiencing love and affection.
- Esteem: Having a positive self-image/self-respect and recognition and respect
from others.
- Self-actualization:Realizing one’s potential for personal growth and
development.
Contributions of Maslow’s Theory
- Identified and categorized individual needs.
 - Emphasized importance of needs to motivation.
Weaknesses of Maslow’s Theory
- All 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 needs.
2. The Two-factory Theory (Herzberg) (mô hình hai nhân tố)
Factors influencing the satisfaction continuum—called motivation factors—are
related specifically to the work content.
The factors presumed to cause dissatisfaction—called hygiene factors—are related
to the work environment

3. Individual Human needs (McClelland)

Need for achievement: The desire to accomplish a goal or task more effectively than in
the past
Need for affiliation (sự gắn kết): The desire for human companionship and acceptance
Need for power: The desire to be influential in a group and to control one’s
environment
C. PROCESS PERSPECTIVES ON MOTIVATION
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 those goals
1. Expectancy theory
Expectancy theory Suggests that motivation depends on two things—how much we
want something and how likely we think we are to get it
Theory assumes that:
- Behavior is determined by personal and environmental forces.
- People make decisions about their own behavior.
 - Different people have different types of needs, desires, and goals.
- People choose among alternatives of behaviors in selecting one that that
leads to a desired outcome.

a. Effort-to-Performance Expectancy: The individual’s perception of the

probability that effort will lead to high performance
b. Performance-to-Outcome Expectancy: The individual’s perception that
performance will lead to a specific outcome
c. Outcomes and Valences:
Outcomes Consequences of behaviors in an organizational setting, usually rewards
Valence An index of how much an individual values a particular outcome; the
attractiveness of the outcome to the individual (thể hiện tầm quan trọng)
d. The Porter–Lawler Extension
- Assumptions:
o If performance results in equitable and fair rewards, people will
be more satisfied.
o High performance can lead to rewards and high satisfaction.
- Types of Rewards:
o Extrinsic rewards are outcomes set and awarded by external parties
o Intrinsic rewards are outcomes that are internal to the individual
 2. Equity Theory
Equity theory: Contends that people are motivated to seek social equity in the rewards
they receive for performance
Inputs to the job include: Time, experience, effort, education, and loyalty
Outcomes from a job include: Pay, recognition, promotions, social relationships,
and intrinsic rewards

Perception of Inequity:
- Feeling under-rewarded—reduce inequity by:
o Changing inputs by trying harder or slacking off.
o Changing outcomes by demanding a raise.
o Distorting ratios by altering perceptions of self or of others.
o Leaving situation by quitting the job.
o Choosing another object person.
- Feeling over-rewarded:
o Increase or decrease inputs.
o Distort ratios by rationalizing.
 o Help the object person gain more outcomes.
Perception of Equity:
- Feeling equitably rewarded:
o Maintain performance and accept comparison
as fair estimate.
3. Goal-Setting Theory
Theory’s Assumptions:
- Behavior is a result of conscious goals and intentions.
- Setting goals influences behavior in organizations.
Characteristics of Goals:
- Goal difficulty: the extent to which a goal is challenging and requires effort
- Goal specificity: the clarity and precision of the goal
- Goal acceptance: the extent to which a person accepts a goal as his or her own.
- Goal commitment: the extent to which he or she is personally interested in
reaching the goal.

(The Expanded Goal-Setting Theory of Motivation)

D. REINFORCEMENT PERSPECTIVES ON MOTIVATION
Reinforcement theory Approach to motivation that argues that behavior that results in
rewarding consequences is likely to be repeated, whereas behavior that results in
punishing consequences is less likely to be repeated
 Focuses on the role of rewards as they cause behavior to change or remain the
same over time
1. Kinds of Reinforcement in Organizations
Positive reinforcement: A method of strengthening behavior with rewards or positive
outcomes after a desired behavior is performed
Avoidance: Used to strengthen behavior by avoiding unpleasant consequences that
would result if the behavior were not performed
Punishment: Used to weaken undesired behaviors by using negative outcomes or
unpleasant consequences when the behavior is performed
Extinction: Used to weaken undesired behaviors by simply ignoring or not reinforcing
them
2. Providing Reinforcement in Organizations
Fixed-interval schedule: Provides reinforcement at fixed intervals of time, such as
regular weekly paychecks
Variable-interval schedule: Provides reinforcement at varying intervals of time, such
as occasional visits by the supervisor
Fixed-ratio schedule: Provides reinforcement after a fixed number of behaviors
regardless of the time interval involved, such as a bonus for every fifth sale
Variable-ratio schedule: Provides reinforcement after varying numbers of behaviors
are performed, such as the use of compliments by a supervisor on an irregular basis
Organizational behavior modification (OB Mod) Method for applying the basic
elements of reinforcement theory in an organizational setting
 Specific behaviors are tied to specific forms of reinforcement.
E. POPULAR MOTIVATIONAL STRATEGIES
1. Empowerment and Participation
Empowerment: The process of enabling workers to set their own work goals, make
decisions, and solve problems within their sphere of responsibility and authority.
Participation: The process of giving employees a voice in making decisions about
their own work
2. Alternative Forms of Work Arrangements
a. Variable Work Schedules
Compressed work schedule: Working a full 40-hour week in fewer than the traditional
five days
“Nine-eighty” schedule: Working one full week (five days) and one compressed week
(four days), yielding one off-work day every other week
b. Flexible Work Schedules: Work schedules that allow employees to select, within
broad parameters, the hours they work
c. Job Sharing: When two part-time employees share one full-time job
d. Telecommuting: Allowing employees to spend part of their time working offsite,
usually at home
F. USING REWARD SYSTEMS TO MOTIVATE PERFORMANCE
Reward system: Formal and informal mechanisms by which employee performance is
defined, evaluated, and rewarded
Effects of organizational rewards
- Higher-level performance-based rewards motivate employees to work harder.
- Rewards help align employee self-interest with organizational goals.
- Rewards foster increased retention and citizenship.
1. Merit Reward Systems
Merit pay: Pay awarded to employees on the basis of the relative value of their
contributions to the organization
Merit pay plan: Compensation plan that formally bases at least some meaningful
portion of compensation on merit
2. Incentive Reward Systems
Piece-rate incentive plan: Reward system wherein the organization pays an employee
a certain amount of money for every unit he or she produces