Contemporary Mgt Principles
Week 3 – Motivating for
Performance
Dr David Qian dqian@[Link]
Peter Moran pmoran@[Link]
© McGraw Hill, LLC
Learning Objectives
13-1 Identify the kinds of behaviors managers need to motivate in
people.
13-2 List principles for setting goals that motivate employees.
13-3 Summarize how to reward good performance effectively.
13-4 Describe the key beliefs that affect people’s motivation.
13-5 Discuss ways in which people’s individual needs affect their
behavior.
13-6 Define ways to create jobs that motivate.
13-7 Summarize how people assess fairness and how to achieve
fairness.
13-8 Identify causes and consequences of a (dis)satisfied
workforce.
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Management in Action Managing
Motivation
Google emphasizes “psychological safety,” a team culture
that allows and motivates people to ask questions, share
ideas, and take considered risks without feeling insecure or
afraid of failure.
Salesforce, the customer service solutions specialist, offers
perks and benefits that distinguish it from competitors and to
motivate people to join the company, remain, and perform
well.
What are key motivating factors for employees? Is it culture,
benefits, the nature of work?
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Exhibit 13.1 Managers Must Motivate
People to Engage in Key Behaviors
Motivation:
• Forces that
energize, direct,
and sustain a
person’s efforts.
Access the text alternative for slide image
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Setting Goals
Goal-setting theory:
• A motivation theory stating
that people have conscious SMART Goals
goals that energize them Specific
and direct their thoughts
Measurable
and behaviors toward a
particular end. Achievable
Stretch goals: Results-based
• Targets that are particularly Time-specific
demanding, sometimes
even thought to be
impossible.
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Limitations of Goal Setting
People lack relevant ability and knowledge.
Goals are designed to maximize individual performance hurt
group performance.
They can generate manipulative game-playing and unethical
behavior.
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Reinforcing Performance
Law of effect:
• Formulated by Edward Thorndike in 1911, stating that
behavior followed by positive consequences will likely be
repeated.
Four potential consequences of behavior:
1. Positive reinforcement.
2. Negative reinforcement.
3. Punishment.
4. Extinction.
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Exhibit 13.3 Behavior, Consequences, and
Effects
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(Mis)Managing Rewards and Punishments
Reward system should
support the firm’s strategy
Innovative managers use
nonmonetary rewards:
• Intellectual challenge.
• Meaningful
responsibilities.
• Autonomy. At 10:30 every morning, when Richard
Sheridan, CEO, passes the Viking
• Recognition. helmet, Menlo Innovations employees
must talk about their day.
• Greater influence over
decisions. SOURCE: Andre J. Jackson/MCT/Newscom
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Managing Mistakes
Punishment is appropriate when people violate laws, ethical
standards, safety rules.
Overuse of punishment creates a climate of fear.
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Exhibit 13.4 Basic Concepts of Expectancy
Theory
A theory proposing that people will behave based on the
perceived likelihood that their effort will lead to a certain
outcome and on how highly they value that outcome.
Access the text alternative for slide image
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Management in Action What Makes SAS A
Famously Great Place to Work?
SAS (named after its first product, Statistical Analysis Software)
grew steadily since its 1976 founding into one of the world’s
leaders in data analytics software. The company consistently
reports over $3 billion in annual revenue and has approximately
14,000 employees worldwide. For decades, SAS has also been
known as a great place to work, but its consistency at the top is
what’s truly remarkable: SAS has been in the top 10 of Fortune’s
World’s Best Workplaces for the past decade.
1. How aligned do you feel employees' satisfaction is to their job
performance? How does a firm’s culture contribute to employee
satisfaction?
2. If you were trying to motivate your team or the people who
report to you, what strategies would you use?
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Managerial Implications of Expectancy
Theory
Three crucial implications:
1. Increase expectancies.
2. Identify possible valence outcomes.
3. Make performance instrumental toward positive
outcomes.
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Understanding People’s Needs
The best-known approaches are:
• Maslow’s need hierarchy.
• Alderfer’s ERG theory.
• McClelland’s needs.
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Exhibit 13.5 Maslow’s Need Hierarchy
Source: D. Organ and T. Bateman, Organizational Behavior, 4th ed. New York: McGraw-Hill, 1991
Access the text alternative for slide image
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Alderfer’s ERG Theory
A human needs theory suggesting that people have three
basic sets of needs that can operate simultaneously
1. Existence.
2. Relatedness.
3. Growth.
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McClelland’s Needs
Different needs motivate different people.
• Need for achievement.
• Need for affiliation.
• Need for power.
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Designing Motivating Jobs
Extrinsic reward:
• Reward given to a person by the boss, the company, or
some other person.
Intrinsic reward:
• Reward a worker derives directly from performing the job
itself.
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SPOTLIGHT ON… Using Duty as a Source
of Motivation
There are many strategies for motivating others. Some
organizations try motivating people with better salaries or
benefits; others foster fun and friendly environments. Team
Rubicon, co-founded by Marine vet and CEO Jake Wood,
wants to motivate by instilling a sense of duty.
1. How would you characterize duty as a source of
motivation: extrinsic, intrinsic, or both? Why?
2. Most Team Rubicon members are military veterans
familiar with a duty-based culture. How can using a sense
of duty as a motivational force translate to workplaces
with mostly non-military personnel?
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Job Rotation, Enlargement, and
Enrichment
Job Rotation:
• Changing from one task to another to alleviate boredom.
Job Enlargement:
• Giving people additional tasks at the same time to alleviate
boredom.
Job Enrichment:
• Changing a task to make it inherently more rewarding,
motivating, and satisfying.
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Herzberg’s Two-Factor Theory
Hygiene factors:
• Characteristics of the workplace, such as company
policies, working conditions, pay, and supervision, that can
make people dissatisfied.
Motivators:
• Factors that make a job more motivating, such as
additional job responsibilities, opportunities for personal
growth and recognition, and feelings of achievement.
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Exhibit 13.6 Hackman and Oldham Model
of Job Enrichment
SOURCE: J. Richard Hackman, et al., “A New Strategy for Job Enrichment,” California Management Review 17, no. 4
(Summer 19 75), pp. 57–71.
Access the text alternative for slide image
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Empowerment and Engagement
Empowerment:
• Sharing power with employees, enhancing their confidence
in their ability to perform their jobs and their belief that they
are contributors to the organization.
Engagement:
• When employees invest their physical, mental, and
emotional energy into performing their jobs, including
working hard and producing, taking initiative, and
contributing additional citizenship behaviors.
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Exhibit 13.7 Equity Theory
Your Ratio = Other’s Ratio Likely Actions You May Take to
> Perception Restore Equity
>
Your Other’s
Outcomes = Outcomes Equitably
No action necessary.
Your Other’s treated.
Inputs Inputs
Reduce your inputs. Try to
Your Other’s Inequitably increase your outcomes (ask for
Outcomes < Outcomes treated. Feel a raise). Change your
Your Other’s underrewarded perception of inputs or
Inputs Inputs . outcomes (maybe so-and-so
really did deserve the bonus).
Your Other’s Increase your inputs by putting
Inequitably
Outcomes > Outcomes in extra effort. Help other person
treated. Feel
Your Other increase her outcomes (urge
overrewarded.
Inputs Inputs her to ask for a larger bonus).
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Procedural Justice
Using fair process in decision making and making sure
others know that the process was as fair as possible
Perceptions of justices may be increased by:
• Stating decision criteria in advance.
• Making sure appropriate people are viewed as trustworthy.
• Making sure the process is open and visible.
• Allowing for participation and appeal.
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The Impact of Worker Dissatisfaction
• Higher turnover. • Poorer mental and
• Higher absenteeism. physical health.
• Less good citizenship. • More injuries.
• More grievances and • Poor customer service.
lawsuits. • Lower productivity and
• Strikes. profits.
• Stealing, sabotage, and
vandalism.
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SPOTLIGHT ON… Using Technology to
Motivate
Companies are learning that technology can help them
motivate employees.
1. Consider technology as an aspect of job design. How can
it provide, to greater or lesser degrees, the job
characteristics described in this chapter?
2. In what ways does technology motivate you? At school?
At work?
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Quality of Work Life
Quality of work life (QWL) programs create a workplace
that enhances employee well-being.
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QWL Program Categories
1. Adequate and fair compensation.
2. A safe and healthy environment.
3. Jobs that develop human capacities.
4. A chance for personal growth and security.
5. An environment that fosters personal identity, freedom from
prejudice, a sense of community, and upward mobility.
6. Constitutionalism, or the rights of personal privacy, dissent, and
due process.
7. A work role that minimizes infringement on personal leisure and
family needs.
8. Socially responsible organizational actions.
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Psychological Contracts
The contract is a set of perceptions of what employees owe
their employers, and what their employers owe them.
Viewing employment as an alliance is much more likely to
produce a mutually beneficial and satisfying relationship and
a high-performing, successful organization.
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Management in Action Hilton: Motivating
Through Inclusion
Although SAS consistently places in the top 10 of Fortune’s Best
Workplaces for 10 straight years, Hilton has made its own news on
this front, becoming in 2019 the only business in the hospitality
industry to ever become Fortune’s number one company at which
to work—and then it ranked number one in 2020 as well. How
does an organization in an industry not known for employee
motivation and satisfaction achieve such a feat?
1. How strong do you think the connection is between inclusion
and motivation? What behaviors might inclusion motivate?
2. If you were an upper-level manager, to what degree would you
want to know about the daily operations of broad strategy
initiatives? In what ways would it help? Could there be any
drawbacks?
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In Review
1. Identify the kinds of behaviors managers need to motivate in
people.
2. List principles for setting goals that motivate employees.
3. Summarize how to reward good performance effectively.
4. Describe the key beliefs that affect people’s motivation.
5. Discuss ways in which people’s individual needs affect their
behavior.
6. Define ways to create jobs that motivate.
7. Summarize how people assess fairness and how to achieve
fairness.
8. Identify causes and consequences of a (dis)satisfied workforce.
© McGraw Hill, LLC 32
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