Management

A Practical Introduction
Third Edition
Angelo Kinicki &
Brian K. Williams

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

 Chapter 12: Motivating Employees

Achieving Superior Performance

in the Workplace
Motivating for Performance
What Motivates Employees?
Do Rewards Work?
How Should Jobs Be Designed?
What Incentives Should Be Used
Does Compensation Motivate?

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 12.1 Motivating For Performance

 Motivation: may be defined as the psychological

processes that arouse and direct goal-directed
behavior.

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

McGraw-Hill/Irwin 3 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 12.1 Motivating For Performance

WHAT IS MOTIVATION?

The psychological processes that arouse and

direct goal-directed behavior is motivation
In a simple model of motivation, people have
needs that motivate them to perform specific
behaviors for which they receive rewards that feed
back and satisfy the original needs
Rewards can be extrinsic (the payoff a person
receives from others for performing a particular task),
or intrinsic (the satisfaction a person receives from
performing the particular task itself)
Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin
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 Intrinsic vs. Extrinsic Rewards
Extrinsic = Outside

Recognition Intrinsic = Inside Praise

Feeling of Job
Well Done
Pride
Promotions Salary Increase

Sense of Status
Gifts Achievement

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 12.1 Motivating For Performance

Figure 12.1: A Simple Model Of Motivation

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 12.1 Motivating For Performance

WHY IS MOTIVATION IMPORTANT?

It is important to motivate people to

-join your organization
-stay with your organization
-show up for work at your organization
-perform better for your organization
-do extra for your organization

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 12.2 Content Perspectives
On Employee Motivation

WHAT KINDS OF NEEDS MOTIVATE

EMPLOYEES?

Theories that emphasize the needs that motivate people are

content perspectives or need-based perspectives
-where needs are defined as physiological or psychological
deficiencies that arouse behavior
Three content perspectives are Maslow’s hierarchy of
needs, McClelland’s acquired needs theory, and Herzberg’s
two-factor theory

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 12.2 Content Perspectives
On Employee Motivation
1. Abraham Maslow put forth the hierarchy of needs theory
which proposes that people are motivated by five levels of
needs:
At the most basic level, people try to fulfill physiological
needs (basic human needs like food, clothing, and shelter)
Next, are safety needs (physical safety, emotional security,
avoidance of violence)
Then, belongingness needs (love, friendship, affection)
Next, esteem needs (self-respect, status, reputation,
recognition, and self-confidence)
Finally, self-actualization needs (self-fulfillment increasing
competence, using abilities to the fullest)

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 12.2 Content Perspectives
On Employee Motivation
Figure 12.2: Maslow’s Hierarchy of Needs

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

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 Maslow’s Hierarchy of Needs: What the
Organization Can Do

5. Self-
actualization needs 5. Self-
Offer adequate actualization
ventilation, heat, water, needs
base pay 4. Esteem Needs

3. Belongingness Needs

2. Safety Needs

1. Physiological Needs

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

McGraw-Hill/Irwin 11 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 Maslow’s Hierarchy of Needs: What the
Organization Can Do (Cont.)

5. Self-
actualization
Offer safe working
needs conditions, job security,
4. Esteem Needs
health and retirement
benefits
3. Belongingness Needs

2. Safety Needs

1. Physiological Needs

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

McGraw-Hill/Irwin 12 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 Maslow’s Hierarchy of Needs: What the
Organization Can Do (Cont.)

Offer interaction with 5. Self-

others, participation inactualization needs
workgroup, good
5. Self-
relations with actualization
supervisors needs

4. Esteem Needs

3. Belongingness Needs

2. Safety Needs

1. Physiological Needs

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

McGraw-Hill/Irwin 13 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 Maslow’s Hierarchy of Needs: What the
Organization Can Do (Cont.)

Offer recognition, status,

challenges, merit pay,
employee participation
in making decisions

5. Self-
actualization
needs

4. Esteem Needs

3. Belongingness Needs

2. Safety Needs

1. Physiological Needs

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

McGraw-Hill/Irwin 14 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 Maslow’s Hierarchy of Needs: What the
Organization Can Do (Cont.)

Offer training,
creativity, promotions,
employee control over 5. Self-
jobs actualization needs

5. Self-
actualization
needs

4. Esteem Needs

3. Belongingness Needs

2. Safety Needs

1. Physiological Needs

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

McGraw-Hill/Irwin 15 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 Rules of Maslow’s Hierarchy of Needs

Unsatisfied
Self-
Actualization

Esteem Needs
Social Needs
(Belongingness)
Safety Needs Satisfied
Physiological Needs
Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin
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 Chapter 12: Motivating Employees

CLASSROOM PERFORMANCE SYSTEM

Which of the following is not one of Maslow’s needs?

A) psychological needs
B) esteem needs
C) self-actualization needs
D) safety needs

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 Chapter 12: Motivating Employees

CLASSROOM PERFORMANCE SYSTEM

Love, friendship, and affect needs are part of which

of Maslow’s five needs?

A) belongingness needs
B) esteem needs
C) self-actualization needs
D) safety needs
Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin
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 12.2 Content Perspectives
On Employee Motivation
2. David McClelland proposed the acquired needs theory
which argues that three needs (achievement, power, and
affiliation) are major motivators in the workplace
The three needs are associated with different sets of work
preferences
People with a high need for achievement excel in technical
fields that require creativity and individual skills
People who have a high need for power will do well in jobs
where they can control others and be publicly applauded for
their accomplishments
People with a high need for affiliation prefer work where
personal relationships and social approval are important

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

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 Needs Theories: McClelland

 Acquired Needs Theory: states that three needs are

major motives determining people’s behavior in the
workplace:
 Need for achievement – desire to excel
 Need for affiliation – desire for friendly relations with
other people
 Need for power – desire to be responsible for other
people, to influence their behavior, or to control
them
 Negative power – personal power
 Positive power – institutional power
Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin
McGraw-Hill/Irwin 20 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 McClelland’s Three Needs

Achievement Affiliation 5. “well-balanced

A Self- individual”
actualization needs

Power

Achievement Affiliation

A “control freak” Power

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

McGraw-Hill/Irwin 21 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 12.2 Content Perspectives
On Employee Motivation

3. Frederick Hertzberg proposed that work

satisfaction and dissatisfaction arise from two
different factors:
Lower level needs are usually handled through
hygiene factors (factors associated with job
dissatisfaction like salary and working conditions)
Higher level needs are associated with motivating
factors (factors associated with job satisfaction)
So, managers should eliminate dissatisfaction,
then focus on encouraging motivation

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

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 Herzberg’s Two-Factor Concept

Job-Related Job Environment

(Motivators) (Hygiene Factors)
• Achievement • Working Conditions
• Recognition • Salary
• Work Itself • Policy &
• Growth/Advancement Administration
• Responsibility • Supervision
• Peer Relationships

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 12.2 Content Perspectives
On Employee Motivation

Figure 12.4:
Hertzberg’s Two-
Factor Theory:
Satisfaction Versus
Dissatisfaction

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

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 A Comparison of Needs Theories:
Maslow, Herzberg, and McClelland

Maslow Herzberg
5. Self- McClelland
actualization needs
Self-actualization Achievement
Higher Motivating factors
level Esteem Power
needs
Belongingness Affiliation

Safety
Lower
level Hygiene factors
needs Physiological

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

McGraw-Hill/Irwin 25 © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 Chapter 12: Motivating Employees

CLASSROOM PERFORMANCE SYSTEM

Which of the following is not a hygiene factor?

A) working conditions
B) company policy
C) responsibility
D) supervisors

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 12.3 Process Perspectives
On Employee Motivation

IS A REWARD ENOUGH?

Process perspectives are concerned with the

thought processes by which people decide to act
Three process perspectives on motivation are
equity theory, expectancy theory, and goal-setting
theory

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 12.3 Process Perspectives
On Employee Motivation
1. Equity theory focuses on employee perceptions as to how
fairly they think they are being treated relative to others
The central issues of equity theory are inputs (what you
think you put into the job), outputs (the rewards you could
receive), and comparisons (how your inputs and outputs
compare to those of others)
Employees that believe they are being treated fairly are
more likely to support their organizations than those who
perceive inequities
Managers need to understand employee perceptions, allow
employees to participate in important decisions, and have an
appeal process in place

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 12.3 Process Perspectives
On Employee Motivation
Figure 12.6: Equity Theory

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 12.3 Process Perspectives
On Employee Motivation
2. Victor Vroom’s expectancy theory argues that people are
motivated by how much they want something, and how likely
they think they are to get it
According to expectancy theory, people will do what they
can, when they want to
Expectancy is the belief that a particular level of effort will
lead to a particular level of performance
If people believe their efforts matter, they will work harder
Instrumentality is the expectation that successful
performance of the task will lead to the desired outcome
Managers want to know what they will get for successful
performance

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 Employee Questions
About Expectancy Theory
 What is the probability that I
can perform at the required
level if I try?
 What is the likelihood my
performance will lead to the
desired outcomes?
 What value do I place on the
outcome?

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 12.3 Process Perspectives
On Employee Motivation
Valence is the value or importance a worker assigns to the
possible outcome or reward
For motivation to be high, employees need to score high on
all three elements

Managers should ask the following questions when they are

trying to motivate employees
-what are the job objectives and the performance level
desired?
-are rewards linked to performance?
-do employees believe you will deliver the right rewards for
the right performance?

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 12.3 Process Perspectives
On Employee Motivation

3. Goal setting theory suggests that employees can

be motivated by goals that are specific and
challenging, but achievable
Managers can motivate by setting the right goals in
the right ways
Goals should be SMART - Specific, Measurable,
Attainable, Results-oriented, and have Target dates

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12.4 Job Design Perspectives
On Motivation

Job Design

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

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 12.4 Job Design Perspectives
On Motivation
SHOULD FIRMS FIT PEOPLE TO JOBS, OR JOBS
TO PEOPLE?

Job design is the division of an organization’s work

among its employees and the application of
motivational theories to jobs to increase satisfaction
and performance
Traditionally, people were fitted to jobs, today,
many companies fit jobs to people

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 12.4 Job Design Perspectives
On Motivation
SHOULD FIRMS FIT PEOPLE TO JOBS, OR JOBS
TO PEOPLE?

In companies that fit people to jobs, the challenge

then, is to make the worker compatible with the work
To do this, firms may use job simplification where
the number of tasks a worker performs is reduced to
improve productivity

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 12.4 Job Design Perspectives
On Motivation

In companies where jobs are fitted to people, the

challenge is to make the work compatible to workers
so that performance and job satisfaction rise
Two techniques for doing this are job enlargement
and job enrichment
Job enlargement consists of increasing the number
of tasks in a job to increase variety and motivation
Job enrichment consists of building into a job such
motivating factors as responsibility, achievement,
recognition, stimulating work, and advancement
Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin
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 12.4 Job Design Perspectives
On Motivation

The Job Characteristics Model

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 12.4 Job Design Perspectives
On Motivation
The job characteristics model consists of five
core job characteristics that affect three critical
psychological states of an employee that in turn
affect work outcomes - the employee’s motivation,
performance, and satisfaction
The five core characteristics are:
-skill variety - the extent to which a job requires a
person to use a wide range of different skills and
abilities
-task identity - the extent to which a job requires a
worker to perform all the tasks needed to complete
the job from beginning to end

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 12.4 Job Design Perspectives
On Motivation

-task significance - the extent to which a job

affects the lives of other people, whether inside or
outside the organization
-autonomy - the extent to which a job allows an
employee to make choices about scheduling different
tasks and deciding how to perform them
-feedback - the extent to which workers receive
clear, direct information about how well they are
performing the job

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12.4 Job Design Perspectives
On Motivation
Figure 12.8: The Job Characteristics Model

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 12.4 Job Design Perspectives
On Motivation

HOW DOES THE MODEL WORK?

High motivation, high performance, high satisfaction, and
low absenteeism and turnover are associated with how much
workers feel they are doing meaningful work, whether they
feel they are responsible for the outcomes of the work, and
whether they have knowledge of the results of the work
When using the model, managers need to:
-diagnose the work environment to see whether a problem
exists
-determine whether job redesign is appropriate
-consider how to redesign the job

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 12.5 Reinforcement Perspectives
On Motivation

WHAT INCENTIVES INFLUENCE BEHAVIOR?

Reinforcement theory attempts to explain behavior

change by suggesting that behavior with positive
consequences tends to be repeated, whereas
behavior with negative consequences tends not to be
repeated
When reinforcement theory is used to change
human behavior, it is called behavior modification

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 12.5 Reinforcement Perspectives
On Motivation
Reinforcement is anything that causes a given behavior to
be repeated or inhibited
There are four types of reinforcement:
1. The use of positive consequences to encourage desirable
behavior is called positive reinforcement
2. The removal of unpleasant consequences following a
desired behavior is called negative reinforcement
3. The withholding or withdrawal of positive rewards for
desirable behavior, so that the behavior is less likely to occur
in the future is called extinction
4. The application of negative consequences to stop or
change undesirable behavior is called punishment

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12.5 Reinforcement Perspectives
On Motivation
Figure: 12.9: Four Types of Reinforcement

Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin

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 12.5 Reinforcement Perspectives
On Motivation
When using positive reinforcement or punishment,
managers should:
Reward only desirable behavior
Give rewards as soon as possible
Be clear about what behavior is desired
Have different rewards and recognize individual differences
Punish only undesirable behavior
Give reprimands or disciplinary actions as soon as possible
Be clear about what behavior is undesirable
Administer punishment in private
Combine punishment and positive reinforcement

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 12.6 Using Compensation &
Other Rewards To Motivate
HOW CAN FIRMS USE COMPENSATION AND
OTHER REWARDS TO MOTIVATE?
Wages or salaries are usually not enough to
motivate people to work hard, so many companies
offer incentives as well
Good incentive plans:
-link measurable rewards to performance
-use rewards that satisfy individual needs
-offer rewards that have been agreed on by
managers and employees
-have believable and achievable rewards

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 12.6 Using Compensation &
Other Rewards To Motivate
Some popular incentive plans are:
-pay for performance - pay is based on results using piece rates
-sales commissions - pay is based on a percentage of the earnings
made by sales
-bonuses - cash awards given to employees who achieve specific
performance objectives
-profit sharing - the distribution to employees of a percentage of the
company’s profits
-gainsharing - the distribution of savings or gains to groups of employees
who reduced costs and increased measurable productivity
-stock options - certain employees are given the right to buy stock at a
future date for a discounted price
-pay for knowledge - employee pay is tied to the number of job relevant
skills or academic degrees they earn

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 12.6 Using Compensation &
Other Rewards To Motivate

HOW CAN FIRMS USE NONMONETARY

REWARDS TO MOTIVATE EMPLOYEES?

Organizations need to be sure that:

-employees have a balance between work and life
-employees can expand their skill set
-employees feel valuable

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 12.6 Using Compensation &
Other Rewards To Motivate

The most common non-monetary incentive is the flexible

workplace
Companies need to offer employees a means of balancing
their work and their personal lives
Companies need to create a work environment that is
conducive to productivity
Companies can help employees build their skills by
developing “shadowing” programs and offering tuition
reimbursement
Offering sabbaticals to long-term employees gives people a
change to recharge themselves

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