Copyright ©2017 Pearson Education, Inc.
1-1 10-1
11
Motivating
and Rewarding
Employees
Copyright ©2017 Pearson Education, Inc. 11-2
Learning Objectives
• Define and explain motivation
• Compare and contrast early theories of motivation
• Compare and contrast contemporary theories of motivation
• Discuss current issues in motivating employees
Copyright ©2011 Pearson Education 10-3
11-
1 Define and explain
motivation.
Copyright ©2017 Pearson Education, Inc. 11-4
1. What is Motivation?
• The process by which a person’s efforts are energized, directed, and sustained
toward attaining a goal
Motivation has three key elements:
• The energy element is a measure of intensity or drive where the quality and
intensity of the effort must be considered
• High levels of effort lead to favorable job performance when the effort is
directed toward, and consistent with, organizational goals.
• Finally, motivation includes a persistence dimension where employees keep
putting forth effort to achieve those goals
• Motivating high levels of employee performance is an important
organizational concern, as it identifies whether employees are excited about
their work or not
Copyright ©2011 Pearson Education 10-5
11- Compare and
2 contrast early
theories of
motivation.
Copyright ©2017 Pearson Education, Inc. 11-6
Maslow’s Hierarchy of Needs Theory
• The best-known motivation theory is probably Abraham Maslow’s
hierarchy of needs theory. Maslow was a psychologist who
proposed that within every person is a hierarchy of five needs:
Lower 1. Physiological needs – food, drink, shelter, sex
order
needs
satisfied
2. Safety needs – security and protection from physical and
externally emotional harm
3. Social needs – affection, belongingness, acceptance,
Higher friendship
order
needs 4. Esteem needs – self-respect, autonomy, achievement, status,
satisfied
internally recognition, attention
5. Self-actualization needs – growth, achieving full potential, self-
fulfilment
Copyright ©2011 Pearson Education 10-7
Copyright ©2011 Pearson Education 10-8
Therefore, in order for organizations to motivate
their employees, they need to understand what
need level a particular employee is on in the
hierarchy and focus on satisfying needs at or
above that level
Copyright ©2009 Pearson Education, Inc.
10-9
Publishing as Prentice Hall.
McGregor’s Theory X and Theory Y
Douglas McGregor is best known for proposing two assumptions
about human nature:
•Theory X
– Is a negative view of people that assumes employees have little
ambition, dislike work, want to avoid their responsibility, and
need to be closely controlled to work effectively
•Theory Y
– Is a positive view of people that assumes employees enjoy their
work, seek out and accept responsibility, and can exercise self-
direction
Copyright ©2011 Pearson Education 10-10
Copyright ©2009 Pearson Education, Inc.
10-11
Publishing as Prentice Hall.
There is no evidence that one method motivates
employees more than the other, therefore to
maximize employee motivation, Theory Y
managers need to include employees in decision
making, provide responsible and challenging jobs,
and develop good group relations
Copyright ©2009 Pearson Education, Inc.
10-12
Publishing as Prentice Hall.
Herzberg’s Two-Factor Theory
• Herzberg wanted to know when people felt exceptionally good
(satisfied) or bad (dissatisfied) about their jobs.
• He concluded from people’s responses that certain characteristics
were consistently related to job satisfaction (as seen on the left
side of the exhibit), and other characteristics were related to job
dissatisfaction (factors on the right side).
• When people felt good about their work, they tended to cite
intrinsic factors arising from the job itself, such as achievement,
recognition, and responsibility. But when they were dissatisfied,
they tended to cite extrinsic factors arising from the job context,
such as company policy, administration, supervision, interpersonal
relationships, and working conditions.
Copyright ©2011 Pearson Education 10-13
Managers can
Increases job eliminates job
satisfaction and dissatisfaction
motivation but can’t
motivate
Copyright ©2011 Pearson Education 10-14
Copyright ©2011 Pearson Education 10-15
However, Herzberg believed that the opposite of
satisfaction was not dissatisfaction.
Therefore, in order for organizations to motivate
their employees, they need to emphasize
motivators, the intrinsic factors having to do with
the job itself.
Copyright ©2009 Pearson Education, Inc.
10-16
Publishing as Prentice Hall.
McClelland’s Three-Needs Theory
Suggests that there are three acquired needs that are major motives in
work:
• Need for Achievement (nAch)
–The drive to succeed and excel in relation to a set of standards
• Need for Power (nPow)
–The need to make others behave in a way that they would not have
behaved otherwise
• Need for Affiliation (nAff)
–The desire for friendly and close interpersonal relationships
Copyright ©2011 Pearson Education 10-17
Therefore, in order for organizations to motivate
their employees, employees can be trained to
stimulate their achievement need by being in
situations where they have personal
responsibility, feedback, and moderate risks.
Copyright ©2009 Pearson Education, Inc.
10-18
Publishing as Prentice Hall.
11- Compare and
contrast
3 contemporary
theories of
motivation.
Copyright ©2017 Pearson Education, Inc. 11-19
Goal-Setting Theory
• Goal-Setting Theory
– Specific goals increase performance and difficult goals result in
higher performance than easy goals
– This means that: (1) working toward a goal is a major source of
job motivation and (2) specific and challenging goals are
superior motivating forces
– Therefore, managers can motivate employees to increase their
performance and obtain organizational goals by ensuring goals
are specific, challenging and that employees receive feedback
– In addition to feedback, there are three other contingencies
that influence goal performance, namely goal commitment,
adequate self-efficiency and national culture
Copyright ©2011 Pearson Education 10-20
Belief that he/she is
capable of
performing a task
Copyright ©2011 Pearson Education 10-21
Job Design
• Job Design
– The way tasks are combined to form complete jobs
– Managers should design jobs deliberately and thoughtfully to
reflect the demands of the changing environment, the
organization’s technology, and employees’ skills, abilities, and
preferences
– When jobs are designed like this, employees are motivated to
work hard
– How can managers design jobs that motivate?**
• Job Characteristics Model (JCM)
– According to Hackman and Oldham, any job can be described in
terms of the five core job dimensions: skill variety, task identity,
task significance, autonomy and feedback
Copyright ©2011 Pearson Education 10-22
CREATES
CREATES
Internal rewards are obtained
when an employee learns that
he/she personally performed
well on a task that he/she cares
about. If these conditions
characterize a job the more
positive the outcomes will be
Copyright ©2011 Pearson Education 10-23
Copyright ©2009 Pearson Education, Inc.
10-24
Publishing as Prentice Hall.
Equity Theory
• Equity Theory
– Employees compare what they get from a job (outcomes) in
relation to what they put into it (inputs) and then compare their
inputs-outcomes ratio with that of relevant others (referent)
and then corrects any inequity
– If an employee perceive their ratio to be equitable in relation to
a referent, there is no problem, however; if the ratio is
inequitable, they will view themselves to be under-rewarded or
over-rewarded.
– When inequities occur employees will attempt to do something
about it. The result may be lower/higher productivity,
improved/reduced quality of output, increased absenteeism,
or voluntary resignation.
Copyright ©2011 Pearson Education 10-25
Copyright ©2011 Pearson Education 10-26
Therefore, to ensure employees are motivated,
organizations should consider openly sharing
information on how allocation decisions are
made, follow consistent and unbiased
procedures, and engage in similar practices to
increase the perception of procedural justice
(fairness of the process used to determine the
distribution of rewards)
Copyright ©2009 Pearson Education, Inc.
10-27
Publishing as Prentice Hall.
Expectancy Theory
• The most comprehensive explanation of how employees are
motivated, which states that an individual tends to act in a certain
way based on the expectation that the act will be followed by a given
outcome and on the attractiveness of that outcome to the individual
• This theory includes three variables or relationships:
• Expectancy or effort-performance linkage - exerting a given
amount of effort will lead to a certain level of performance
• Instrumentality or performance-reward linkage - performing at a
particular level is instrumental to attaining the desired outcome
• Valence or attractiveness of reward - importance that the
individual places on the potential outcome or reward (goals and
needs of the individual)
Copyright ©2011 Pearson Education 10-28
This explanation of motivation can be summed up
in the following questions: How hard do I have to
work to achieve a certain level of performance,
and can I actually achieve that level? What reward
will performing at that level get me? How
attractive is the reward to me, and does it help me
achieve my own personal goals?
The key to expectancy theory is understanding an
individual’s goals and the links between effort
and performance, between performance and
rewards, and between rewards and individual
goal satisfaction.
Copyright ©2009 Pearson Education, Inc.
10-29
Publishing as Prentice Hall.
Integrating Motivation
Theories
Copyright ©2017 Pearson Education, Inc. 11-30
11-
Discuss current
4 issues in motivating
employees.
Copyright ©2017 Pearson Education, Inc. 11-31
4. Motivating a Diverse Workforce
To maximize motivation among today’s workforce, managers need to:
•Hold meetings with employees to keep the lines of communication open
•Get employee input on issues
•Establish a common goal, such as maintaining excellent customer service,
to keep everyone focused
•Create a community feel so employees can see that managers care about
them and their work
•Give employees continuing opportunities to learn and grow
•Provide Flexible Work Arrangements
•Have an open book management policy
•Initiate employee recognition programs
•Implement pay for performance programs
Copyright ©2011 Pearson Education 10-32
END
Copyright ©2009 Pearson Education, Inc.
10-33
Publishing as Prentice Hall.