CH-13 Motivating for Performance – Management: Leading and Collaborating in a Competitive World : Chapter Notes

Chapter 13 Motivating for Performance LEARNING OBJECTIVES 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 individuals 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. CHAPTER OUTLINE Motivating for Performance Setting Goals Goals That Motivate Stretch Goals Limitations of Goal Setting Set Your Own Goals Reinforcing Performance (Mis)Managing Rewards and Punishments Managing Mistakes Providing Feedback Performance-Related Beliefs The Effort-to-Performance Link The Performance-to-Outcome Link Impact on Motivation Managerial Implications of Expectancy Theory Understanding People’s Needs Maslow’s Need Hierarchy Alderfer’s ERG Theory McClelland’s Needs Need Theories: International Perspectives Designing Motivating Jobs Job Rotation, Enlargement, and Enrichment Herzberg’s Two-Factor Theory The Hackman and Oldham Model of Job Design Empowerment Achieving Fairness Assessing Equity Restoring Equity Procedural Justice Employee Satisfaction and Well-being Quality of Work Life Psychological Contracts CHAPTER RESOURCES Experiential Exercises 1. Assessing Yourself 2. Personal Goal Setting 3. What do Students Want from Their Jobs? Cases Big Bison Resorts: Finding the Key to What Employees Value Social Enterprise Giving Veterans a Renewed Sense of Purpose Lecturettes 1. Social Character and Locus of Control 2. Pay as a Motivator KEY STUDENT QUESTIONS The concepts that students typically find difficult in this chapter include: Differences between job enlargement, job enrichment, and job rotation. Differences between positive reinforcement, negative reinforcement, punishment, and extinction. Differences between expectancy, instrumentality, and valence in expectancy theory. Spend extra time on these topics during lecture, and ask students to give you examples of each concept to assess their understanding. Students are also likely to ask very situation-specific questions about motivation, including: 1. “When a supervisor is given the task of supervising remote employees, those employees are usually fairly independent and self-sufficient; therefore, they are not likely to require a supervisor monitoring their every move. However, remote employees still require the same amount of motivation as office employees, and in some cases even more than what office employees require, so what kind of motivation do they get?” 2. “How can you convince poor performers that the merit pay system is for real without showing them the raises given to top performers?” 3. “What is the best way to motivate employees when managers are short on resources?” Answers to Student Questions 1. When employees are independent and self-sufficient, it is particularly important to pay attention to intrinsic motivators—the nature of the work they are given, opportunities for growth and recognition, and feelings of achievement. Long-distance managers need to assign work carefully, be sure that employees have the resources they need to do the work and allow employees to take credit for their work, in order to motivate them effectively. 2. When answering this question, talk about both expectancy theory and pay-for-performance plans. The issue here is not necessarily knowing how much others have made, but rather, knowing how compensation is linked to performance. For that reason, managers have to be very explicit about the compensation plan, which may include showing them a merit pay matrix such as the following: Performance Evaluation Rating Percent Pay Raise 1 (Poor) 0% 2 (Acceptable) 2% 3 (Good) 3% 4 (Outstanding) 5% 3. Again, this is a question that can best be answered by explaining how to use intrinsic, in addition to extrinsic, motivators. However, it should be pointed out that managers who have scarce resources will be most effective if they also let their employees know that resources are scarce and if they are committed to sharing resources with employees when times improve. CLASS ROADMAP POWERPOINTS Slide 1 Motivating for Performance Slide 2 Chapter Introduction Quotes Slide 3 Learning Objectives MANAGEMENT IN ACTION What Makes SAS a Great Place to Work? Every year since the Great Place to Work Institute started compiling its list of the 100 Best Companies to Work For, published in Fortune magazine, SAS has been on the list. SAS (named after its first product, Statistical Analysis Software), the world’s leader in data analytics software, has more than 14,000 employees in 45 countries. It also took the top spot on the institute’s first list of the World’s Best Multinational Workplaces. The recognition is partly a result of SAS’s generous perks, including adoption assistance, parental leave, and college scholarships for children of employees, as well as extensive facilities at the North Carolina headquarters. However, what employees are most excited about are the company’s values and the opportunity it gives them to be creative. I. MOTIVATING FOR PERFORMANCE POWERPOINTS Slide 4 Motivating for Performance LO 1: Identify the kinds of behaviors managers need to motivate in people. Motivation refers to forces that energize, direct, and sustain a person’s efforts. The company must motivate people to (Exhibit 13.1): Join the organization Remain in the organization Come to work regularly Perform Exhibit good citizenship Example 13.1 - Motivation: Wanda Brown, Vice President and General Manager of Cyberna Group, states compensation is definitely not a key motivator for people in their careers. Money becomes an issue when someone feels he’s underpaid vis-à-vis the market or there’s inequity with co-workers. Ms. Brown states true motivators include recognition and appreciation from employers, challenge and the opportunity to participate in an organization and undergo personal growth. CONNECT ISeeIt! Animated Video: Contingent Consequences SUMMARY When it comes to motivating employees, managers often times try and bring about a certain target behavior by offering specific consequences to employees. This concept is also known as reinforcement theory and is widely used in today’s workplace. ACTIVITY In this activity, students watch a three-minute lecture-type video then answer a series of questions that apply terms associated with reinforcement theory. CLASS DISCUSSION IDEAS The instructor may promote deeper student understanding by asking how the theory may be (or perhaps is) applied in the course to influence outcomes. Sometimes this approach is called “manipulating behavior.” Is this ethical? CONNECT ISeeIt! Animated Video: Job Characteristics Model SUMMARY The Job Characteristics Model of motivation provides managers with a framework on how to design jobs that will motivate their employees. The focus of this model is building jobs that create intrinsic motivation or rather jobs that offer internal rewards such as satisfaction, enjoyment, and a sense of accomplishment. ACTIVITY In this activity, students watch a four-minute lecture like video then answer a series of questions that apply terms associated with the job characteristics model. CLASS DISCUSSION IDEAS The instructor may promote a deeper understanding of the model by asking students to relate the model to Herzberg’s two-factor theory. The instructors may also ask if there are there particular job characteristic that especially interest the students. How could managers use this information to alter their approach? II. SETTING GOALS POWERPOINTS Slide 5 Setting Goals LO 2: List principles for setting goals that motivate employees. A. Goal-setting theory states that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end. B. Goals That Motivate Goals should be acceptable to employees. Acceptable, maximally motivating goals should be challenging but attainable. Goals should be specific, quantifiable, and measurable. Example 13.2 – Goal setting: Google and Intel are spearheading a unique coalition to reduce greenhouse gas emissions from computing by increasing energy efficiency and changing consumer behaviors. They are asking businesses and individuals throughout the world to institute better power management of their computing equipment and purchase energy-efficient computers. This initiative sets aggressive goals to increase efficiency. Stretch goals Stretch goals—Targets that are exceptionally demanding, even sometimes thought to be impossible Two types of stretch goals Vertical—aligned with current activities Horizontal—involve people’s professional development Reward for performance—don’t punish for not meeting stretch goals Limitations of goal setting It is important that a single productivity goal not be established if there are other important dimensions of performance. The manager who wants to motivate creativity should establish creativity goals along with productivity goals. Set your own goals Personal statement of purpose comprised of: distant, inspiring vision a mid-distant goal along the way near-term objectives to start working on immediately III. REINFORCING PERFORMANCE POWERPOINTS Slide 6 Reinforcing Performance Slide 7 Exhibit 13.3 The Consequences of Behavior Slide 8 The Greatest Management Principle in the World LO 3: Summarize how to reward good performance properly. Law of effect – Formulated by Edward Thorndike in 1911 stating that behavior that is followed by positive consequences will likely be repeated. Reinforcers are positive consequences that motivate behavior. Organizational behavior modification (OB Mod) is the application of reinforcement theory in organizational settings. Four key consequences of behavior either encourage or discourage people’s behavior: (Exhibit 13.3) Positive reinforcement is applying valued consequences that increase the likelihood that a person will repeat the behavior that led to it. Negative reinforcement is removing or withholding an undesirable consequence. Punishment is administering an aversive consequence. Extinction is withdrawing or failing to provide a reinforcing consequence. Teaching Tip Students need multiple examples to understand the consequences of behavior described above, especially negative reinforcement. You might try starting with examples of dog training—giving treats when the dog does something right, setting up an electrified grid under the floor to train the dog to stay in one area, telling the dog “no!” when it does something wrong, and letting the dog cry itself to sleep rather than rewarding whimpering. Then ask the students for examples of how the concepts can be applied in the workforce. Negative reinforcement occurs when an employee is on probation for any reason—if the employee does something right, the probation is lifted, thus rewarding the employee’s behavior. Example 13.3 – Positive reinforcement: Bob Kimball, store director for a No Frills Supermarket in Omaha, Neb., loves being the bearer of good news. As part of his morning routine, he relays positive comments from shoppers to his staff. He doesn’t relay these messages in his own words; instead, he plays audio files of the shopper’s actual messages so the associates can hear them verbatim. He feels it’s the best positive reinforcement you can do. (Mis)Managing Rewards and Punishments Identify which kinds of behaviors to reinforce, and those to discourage (Exhibit 13.4) Reward system has to support firm’s strategy Be creative in use of reinforcers Consider prizes (e.g., palm pilots) not money Use non-monetary rewards Managing Mistakes Managers who overuse punishment or use it inappropriately create a climate of fear in the workplace. Causes people to focus on short-term Causes people to focus on themselves, not others To manage mistakes effectively Recognize that everyone makes mistakes Praise people who deliver bad news to their bosses Punish inaction, not good-faith efforts Talk about your failures with your people, and show how you learned from them Give people second, and maybe third chances Encourage people to try new things, and don’t punish them if they don’t work out. Providing Feedback Managers should: consider all potential causes of poor performance pay full attention when employees ask for feedback give feedback according to guidelines in Chapter 10 Possible sources of feedback customers work statistics performance reviews Managers should actively seek feedback and avoid negative emotions when receiving it. IV. PERFORMANCE-RELATED BELIEFS POWERPOINTS Slide 9 Expectancy Theory LO 4: Describe the key beliefs that affect people’s motivation. Expectancy theory is a theory proposing that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome. (Exhibit 13.5) The effort-to-performance link is used to explain behavior. The first belief, expectancy, is people’s perceived likelihood that their efforts will enable them to successfully attain their performance goals The performance-to-outcome link is used to predict behavior. Performance results in some type of outcome, or consequence. Instrumentality is the perceived likelihood that performance will be followed by a particular outcome. Valence is the value the outcome holds for the person contemplating it. Valences can be positive or negative. Impact on motivation. For motivation to be high, expectancy, instrumentality, and total valence of all outcomes must all be high. Managerial Implications of Expectancy Theory. Key leverage points for influencing motivation are increasing expectancies, identifying positively valiant outcomes, and making performance instrumental toward positive outcomes. Example 13.4 – Using expectancy theory: You are trying to motivate a student to study. In order to get the student to study more, you will have to: 1) Train the student on study techniques, and encourage them by telling them that they have the skills that they need to study well (increases expectancy); 2) Help the student understand the link between studying and job performance—test scores and homework grades. One way of doing this would be to show the student correlations between the amount of time former students spent studying and their grades (increases instrumentality); and 3) Be sure that the final reward for getting good grades on the test and homework (a good grade in the class) is something the student wants (increases valence.) CONNECT ISeeIt! Animated Video: Expectancy Theory SUMMARY The Expectancy Theory of Motivation explains the thought processes people go through as they decide on a current course of behavior. Understanding how the Expectancy Theory of Motivation works will enable managers to keep their employees invested in their jobs and the success of their organization. ACTIVITY Students view a three-minute lecture like animated video and answer a series of multiple-choice questions that apply the terms of expectancy theory. CLASS DISCUSSION IDEAS Break students out into groups and have them develop alternative examples to show how expectancy theory works and present their examples to the class. How can we apply expectancy theory to the motivation of volunteers? Management in Action Progress Report Getting Employees to Back the SAS Mission SAS’s values are based on founder James Goodnight’s own experience of the joy of creating something that benefits others. SAS’s website describes the culture as one that “rewards innovation, encourages employees to try new things and yet doesn’t penalize them for taking chances.” In this work environment, employees give their all to carry out projects. The respectful environment also helps SAS build support for new initiatives such as the Hub, SAS’s internal networking site. • What kinds of reinforcement and feedback do you think would be most effective with SAS employees? Reinforcement should match what employees find desirable or undesirable. Most SAS employees are technical experts attracted to a company that values creativity and innovation. Positive reinforcement should reflect those values—for example, recognition that emphasizes how employees’ accomplishments have benefited SAS and its clients and demonstration of respect such as by giving employees latitude in decision-making. Managers should avoid overusing punishment for mistakes because this can stifle innovation; rather, managers should use mistakes as an opportunity for learning. Likewise, feedback should be used as a tool for learning, not punishing. • How should SAS’s managers apply the implications of expectancy theory) to keep the company innovative? SAS’s managers should provide a work environment that facilitates innovation and set reasonable goals for innovation. They should identify the outcomes that employees value—for example, personal or team recognition and information about how users are benefiting from employees’ work. Finally, managers should make sure that innovative efforts are rewarded in the ways employees value. They should be prepared to offer praise, favorable feedback, pay increases, and other valued rewards when employees innovate. These motivational efforts could include formal performance reward systems. V. UNDERSTANDING PEOPLE’S NEEDS POWERPOINTS Slide 10 Exhibit 13.6 Maslow’s Need Hierarchy Slide 11 Alderfer’s ERG Theory Slide 12 McClelland’s Needs LO 5: Discuss ways in which people’s individual needs affect their behavior. Content theories indicate the kinds of needs that people want to satisfy. Maslow’s Need Hierarchy –is a conception of human needs organizing needs into a hierarchy of five major types Specifies his conception of people satisfying their needs in a specified order, from bottom to top: (Exhibit 13.6) Physiological (food, water, sex, and shelter) Safety or security (protection against threat and deprivation) Social (friendship, affection, belonging, and love) Ego (independence, achievement, freedom, status, recognition, and self-esteem) Self-actualization (realizing one’s full potential: becoming everything one is capable of being). Concerns about Maslow’s theory: Maslow’s theory is a simplistic and not altogether accurate theory of human motivation. Not everyone progresses through the five needs in hierarchical order. Contributions of Maslow’s hierarchy Identified important need categories Idea that lower level needs must be satisfied before higher level needs become important Alerts managers to importance of personal growth and self-actualization Example 13.5 – Job perception and motivation: How people perceive their jobs can have a big impact on how motivated they are to do those jobs. For example, Adam Grant of the University of Michigan found that people who become firefighters because they want to make a difference in people’s lives are more satisfied than firefighters who are in the profession to make money or have an exciting career. Alderfer’s ERG Theory- a human needs theory postulating that people have three basic sets of needs that can operate simultaneously Alderfer’s ERG Theory postulates three sets of needs: Existence – all material and physiological desires Relatedness – involve relationships with other people and are satisfied through the process of mutually sharing thoughts and feelings Growth – motivate people to productively or creatively change themselves or their environment. Multiple Generations at Work Millennials Want to Fulfill Higher-Order Needs A recent survey found that 60 percent of Millennials leave their organizations in less than three years. Many companies are trying to attract, motivate, and retain this generation of employees by offering flexible work arrangements, additional vacation time, and relaxed dress codes. For some firms, these measures may not be enough to motivate and retain high performers. David Glickman, CEO of mobile carrier Ultra Mobile, believes that Millennials are motivated by jobs that fulfill their higher order needs. Eighty percent of Ultra Mobile’s 300 plus employees and contractors are Millennials. Over the past two years, Ultra Mobile has grown rapidly to about $120 million in sales revenue and reports a high level of retention. Glickman suggests that many Baby Boomers at younger ages were willing to accept jobs that fulfilled basic needs like a constant paycheck, modest home, and so forth. However, for Millenials, Glickman has the following tips: focus on results, not time in the office; make your organization a cool place to work; and leverage Millenials’ passion. McClelland’s Needs The most important needs for managers, according to McClelland are: The need for achievement is characterized by a strong orientation toward accomplishment and an obsession with success and goal attainment. The need for affiliation reflects a strong desire to be liked by other people. The need for power is a desire to influence or control other people. Personalized power – expressed through the aggressive manipulation and exploitation of others. Socialized power – it can be channeled toward the constructive improvement of organizations and societies. Need theories: International perspectives – profoundly important in the United States, but not universally important. Managers in the United States care most strongly about achievement, esteem, and self-actualization whereas managers in Greece and Japan are motivated more by security. Social needs are most important in Sweden, Norway, and Denmark. VI. DESIGNING MOTIVATING JOBS POWERPOINTS Slide 13 Designing Motivating Jobs Slide 14 Social Enterprise Slide 15 Job Rotation, Enlargement, and Enrichment Slide 16 Herzberg’s Two-Factor Theory Slide 17 Exhibit 13.7 The Hackman and Oldham Model Slide 18 Empowerment LO 6: Define ways to create jobs that motivate. Types of motivators Extrinsic rewards are rewards given to people by the boss, the company, or some other person. Intrinsic reward is a reward the person derives directly from performing the job itself. Job rotation, Enlargement, and Enrichment Job rotation is changing from one routine task to another to alleviate boredom. Job enlargement is similar to job rotation in that people are given additional tasks to do. Job enrichment means that jobs are restructured or redesigned by adding higher levels of responsibility. Herzberg’s Two-Factor Theory- involves describing two factors affecting people’s work motivation and satisfaction Hygiene factors are characteristics of the workplace. They include: Company policies Working conditions Pay Co-workers Supervision Motivators are factors that make a job more motivating. They include: The nature of the work itself Actual job responsibilities Opportunity for personal growth and recognition Feelings of achievement that the job provides Contributions of Herzberg’s theory highlights distinction between extrinsic rewards (hygiene factors) and intrinsic rewards (motivators) reminds managers to use motivators as well as extrinsic rewards sets the stage for theories that explain how managers can enrich people’s jobs. Example 13.6 – Motivating Jobs: Wood & Grieve is an Australian engineering firm that recently won a “Client Choice Award” from BRW, Australia’s top business magazine. The Wood & Grieve website recruits new employees with the following incentives: When the company does well, two profit shares are passed on to all staff per year. This is unique. We are a private company where the owners of the company work alongside everyone else. We are non-bureaucratic and foster a flat hierarchal structure. We have a young, enthusiastic, vibrant and professional workplace. Bring your personality to work—we encourage it! We're all about having some fun while we work. You'll be given plenty of responsibility from day one, along with the opportunity to work on a diverse range of exciting projects . From high-rise buildings, schools, and sports complexes to prisons, airports, and resorts. Extracurricular diversions galore! From the Wood'n'Groovers rock band, the Great Race for Telethon and Corporate Triathlons to river cruises, rock climbing, and corporate croquet! Plus a social club who are doing something new every month. We're going from strength to strength. We're profitable and successful and growing in a national context. A tangible and exciting career path is available for everyone at all levels. So what do you think? Is Wood & Grieve a place where you might like to work? Why or why not? The Hackman and Oldham Model of Job Design. (Exhibit 13.7) Psychological states occur when people are working on enriched jobs, that is, jobs that offer the following five core job dimensions: Skill variety – different job activities involving several skills and talents. Task identity – the completion of a whole, identifiable piece of work. Task significance – an important, positive impact on the lives of others. Autonomy – independence and discretion in making decisions. Feedback – information about job performance. Growth need strength is the degree to which individuals want personal and psychological development. Empowerment-the process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization. One disadvantage is that managers undermine it by sending mixed messages. Empowerment encourages the following beliefs among employees: They perceive meaning in their work, meaning that their job fits their values and attitudes. They feel competent, or capable of performing their jobs with skill. They have a sense of self-determination, of having some choice over the tasks, methods, and pace of their work. They have an impact; they have some influence over important strategic, administrative, or operating decisions or outcomes on the job. CONNECT Case Analysis: The Electricity of Job Enrichment SUMMARY The Hackman and Oldham model explains how managers can enrich people’s jobs. In this activity, students have a chance to consider a person’s job as it relates to the core job dimensions of Hackman and Oldham’s model and decide whether or not the job leads to high motivation based on the five core job dimensions: (1) skill variety, (2) task identity, (3) task significance, (4) autonomy, and (5) feedback. The most effective job enrichment increases all five core dimensions. The case presents Michaela who works as an electrician. She states that it’s pretty great, seeing something go from nothing to completion. She also really likes how having full control over her work and the variety of her work responsibilities. ACTIVITY After reading the brief case describing Michaela’s perspective on her work, students are to answer a series of multiple-choice questions applying the Hackman and Oldham model. CLASS DISCUSSION IDEAS Launch an extended discussion on the Hackman and Oldham model by applying it to other jobs that may be familiar to students. VII. ACHIEVING FAIRNESS POWERPOINTS Slide 19 Equity Theory Slide 20 Procedural Justice LO 7: Summarize how people assess fairness and how to achieve fairness. Equity theory proposes that when people assess how fairly they are treated, they consider two key factors: 1. Outcomes a. refer to the various things the person receives on the job: recognition, pay, benefits, satisfaction, security, job assignments, punishments 2. Inputs b. refer to the contributions the person makes to the organization: effort, time, talent, performance, extra commitment, good citizenship, etc. Example 13.7 - Equity: In 2011, thousands of teachers went on strike in Washington in opposition to the state’s plan to limit collective bargaining, compensation, and fringe benefits of public employees. In unionized jobs, this is one potential consequence of employees’ perceptions of inequity. Only 6.9% of private sector employees are union members, compared to 36.2% of those working in the public sector. Overall, government workers earn 5% more than private sector employees and are much more likely to have traditional pension plans (78%) than those working in the private sector (20%). B. Assessing Equity 1. People assess equity by comparing the ratio of their own outcomes to inputs against the outcome-to-input ratio of some comparison person (Exhibit 13.8). C. Restoring Equity 1. People who feel inequitably treated and dissatisfied are motivated to do something to restore equity. This involves at least one of the following: a. reducing inputs b. increasing outcomes c. walking away from situation d. changing the other person’s ratio D. Procedural justice- using fair process in decision-making and making sure others know that the process was as fair as possible. To increase the likelihood that process will be seen as fair: make it open and visible, state decision criteria in advance rather than after the fact make sure that the most appropriate people make the decisions give people a chance to participate in the decision-making process provide an appeal process that allows people to question decisions safely and receive complete answers CONNECT Manager’s Hot Seat: Bullying in the Workplace SUMMARY The goal of this activity is to demonstrate to students actions that can be considered bullying in the workplace. In the video, Susan Sheppard, Creative Design Manager at Word-of-Mouth Marketing Group, is consistently bullied by her colleague, Alexandra Woodward, the boss's sister. ACTIVITY Students look at the nine-minute video and are presented four multiple-choice questions applying aspects of motivational theories. CLASS DISCUSSION IDEAS Instructors may wish to ask how Susan may have approached the conversation differentially to reach some level of resolution with Alex. Is Susan enabling Alex’s bad behavior? While we can see productivity and motivation issues, are any legal compliance issues in the case? CONNECT Manager’s Hot Seat: Cyberloafing SUMMARY The goal of this activity is to demonstrate to students how job design impacts employees. In the video, we see a discussion regarding an employee’s recent performance decline. Bryan Dobbs has received multiple complaints about Davy Siegler over the past two months. Dobbs sets up a meeting with the intention of discovering what issues are causing Siegler's clear lack of motivation and poor production. He recently received an “above average” performance appraisal but no pay increase. ACTIVITY Students watch a nine-minute video then answer a series of multiple-choice questions relating motivation theory to the characters. CLASS DISCUSSION IDEAS A class discussion could be the evaluation of the conversation in the video, asking these questions: Was the Bryan successful in reaching Davy? What motivational approach was utilized by Bryan? What could Bryan have done earlier that may have prevented, or at least limited Davy’s performance decline? VIII. EMPLOYEE SATISFACTION AND WELL-BEING POWERPOINTS Slide 21 The Impact of Worker Dissatisfaction Slide 22 Quality of Work Life Slide 23 QWL Program Categories Slide 24 Psychological Contract Slide 25 Management in Action Slide 26 In Review LO 8: Identify the causes and consequences of a satisfied workforce. Job dissatisfaction creates a workforce that is more likely to exhibit: Higher turnover Higher absenteeism Less good citizenship among employees More grievances and lawsuits Strikes Stealing, sabotage, and vandalism Poorer mental & physical health More injuries Poor customer service Lower productivity and profits Quality of work life (QWL) programs designed to create a workplace that enhances employee well-being and satisfaction. QWL has eight categories: Adequate and fair compensation. A safe and healthy environment. Jobs that develop human capacities. A chance for personal growth and security. A social environment that fosters personal identity, freedom from prejudices, a sense of community, and upward mobility. Constitutionalism or the rights of personal privacy, dissent, and due process. A work role that minimizes infringement on personal leisure and family needs. Socially responsible organizational actions. Example 13.8 – QWL programs: The University of Pennsylvania has QWL programs in three areas: Work-Life Balance, Health Promotion and Wellness, and Appreciation and Recognition. They offer everything from Snow Day Child Care services to discounts on fitness clubs, to achievement recognition programs as ways of improving life for their employees. Psychological Contracts—a set of perceptions of what employees owe their employers, and what their employers owe them. Management in Action – Onward How SAS Makes Work Motivating Evidence that SAS is motivating successfully include low employee turnover, a flood of job applicants, and steady growth in revenues. Employees believe that their contributions are valued because SAS rewards managers for providing this kind of leadership. Managers’ performance is appraised in part on how well the managers advocate for and develop their people. Corporate policies offer further evidence of the company’s respect for its people. Notably, it trusts employees to accomplish their work despite a standard workweek of 35 hours and unlimited sick days. And it reinforces the meaningfulness of employees’ work by providing many reminders of the ways in which SAS software is useful to people around the world. • How does SAS make its jobs motivating? What other principles of job design could enhance motivation at SAS? SAS uses a combination of extrinsic and intrinsic rewards. Extrinsically, SAS provides generous employee benefits and hours that promote work/life balance. Intrinsically, it emphasizes the meaningfulness of SAS’s products and structures jobs, so employees feel ownership of what they accomplish. Creative work is valued, and CEO James Goodnight takes employees questions at monthly breakfast meetings. • What elements of SAS’s approach to motivation do you think would contribute most to job satisfaction? Why? Students’ opinions and answers will vary, most likely according to what they have found motivational in their own lives. They should draw on principles from this chapter to explain their reasons for choosing an approach. CONNECT Video Case: Life at Google SUMMARY Motivation refers to forces that energize, direct, and sustain a person’s efforts. To be effective, managers must understand which behaviors they want to motivate employees to exhibit. Most of these behaviors can be grouped into three general categories: (1) join the organization; (2) remain with the organization; (3) perform to achieve a high level of output. The video case describes life at Google. From its humble beginnings in 1998 as a search engine, Google has grown into an industry giant. Google has done so much that it is impossible to document everything here. Numerous employee perks are discussed in the video, and the employees seem happy and committed. ACTIVITY Students view a seven-minute video and answer a number of multiple-choice questions that apply various motivational theories and terms to the Google context. CLASS DISCUSSION IDEAS The instructor may ask students if Google’s approach would work in other contexts and why it may or may not be suitable. Will the approach work in a unionized environment? CONNECT Click and Drag: Which Motivation Theory Fits SUMMARY This activity helps students to differentiate among the theories in this chapter by having them match the short version of a theory or a unique attribute of that theory to its proper name. ACTIVITY In this exercise, students are presented six manager statements and theories to match. CLASS DISCUSSION IDEAS The leadership chapter can be tied by asking students to align the given motivational theories to leadership approaches. Alternatively, groups could develop and present brief summaries of the approaches. BOTTOM LINE What is one goal you have set for yourself as a student? If you haven't set any goals, start by setting one now for this course. Answers will vary. Students should see that goal setting is a motivational tactic they can use to their personal advantage. What is rewarding about feedback from your manager? Answers will vary. Feedback can represent attention that is emotionally gratifying or, if the employee performs well, can lead to rewards such as interesting assignments, promotions, and pay increases. Effective feedback also provides information that the receiver can use to improve his or her performance and career prospects. The objective of this question is to help students think about performance feedback as something desirable that they can benefit from applying. Why might an employee be more innovative when a job is intrinsically rewarding? Employees who are intrinsically rewarded are inclined to devote more time and energy to a task. Name two ways to ensure that empowerment is done right. The text offers the following principles to choose from: Create an environment in which employees el they have real influence within their area of responsibility. Give them the information they need to do their best. Give them knowledge about how to use the information and do their work. Give them the power to make decisions related to their work. Give them rewards for making contributions. Give clear strategic direction but leave room for flexibility and calculated risk-taking. In an organization with a strategy focused on low cost, is employee satisfaction important? Why or why not? Yes. Without satisfaction, the organization is likely to encounter higher absenteeism and turnover, more grievances and lawsuits, more problems such as stealing and strikes, more injuries, and poorer worker health. All of these outcomes raise costs directly or indirectly. In addition, satisfied employees, in the right environment, could be advocates and idea generators for cost-cutting. SOCIAL ENTERPRISES Giving Veterans a Renewed Sense of Purpose Staffed by veterans, Team Rubicon bridges the gap between the moment a natural disaster happens and when other aid organizations respond. Of those veterans who would like to work for Team Rubicon, what types of rewards are likely to keep them motivated: extrinsic, intrinsic, or both? Intrinsic rewards are likely to keep these veterans motivated. As the case describes, helping others in a time of crisis provides them with a sense of self-worth and accomplishment. This is not to say that an answer of both is incorrect as an extrinsic reward, such as compensation for being a staff member, may be motivating as well. However, the main motivation here is intrinsic. To what degree do you think Team Rubicon will make a positive impact on natural disaster victims? Explain. Answers will vary, but Team Rubicon should hopefully make a high degree of positive impact on natural disaster victims. The resources brought to these areas during times of crisis, especially the knowledgeable and experienced veterans, are priceless. LECTURETTES LECTURETTE 13.1: Social Character and Locus of Control SOCIAL CHARACTER AND PERFORMANCE A person’s social character can be a critical ingredient in the motivation-performance-reward process that must be maximized by management. The popular “social character” theory contends that people can be divided into two distinct categories based on the nature of their social characters. Inner-directed individuals are those people who look to their own standards and values for behavioral direction. Other-directed individuals are those who look to others around them for standards and values for behavioral direction. 3. One’s social character, or relative inner-directiveness or other-directiveness, influences one’s perceptions of motivational factors, personal behavior, performance, performance evaluation, and rewards. 4. Other-directed people, who look to others for behavioral standards, are found to perform best in those decision-making situations that feature group interactions, such as in-group brainstorming sessions. 5. Inner-directed people, who look to their own behavioral standards, are found to perform best in those decision-making situations that feature individual work, such as in nominal grouping and the Delphi technique. 6. Inner-directed employees, often found in such positions as accounting, engineering, and information systems, have unique attitudes toward a variety of work factors, and they tend to: Be dissatisfied with pay as a motivator. Feel that the amount of pay received is determined by demonstrated administrative skills and productivity. Feel that little importance is placed on seniority and the amount of responsibility and pressure on the job. Perceive the performance evaluation as a negative process. Feel that job-related information is highly important. Reflect a lower degree of role clarity. Have a lower propensity to leave the job. Other-directed employees, often found in such positions as marketing, human resource management, public relations, and public service, also have unique attitudes toward a variety of work factors, and they tend to: Be satisfied with pay as a motivator. Feel that pay is determined by seniority, responsibility, and pressure, and effort expended on the job. Feel that pay is not determined by administrative skills and productivity. Feel that job-related information is not important. Reflect a higher degree of role clarity. Have a higher propensity to leave the job. LOCUS OF CONTROL AND PERFORMANCE More recently, a similar social character concept has been developed called locus of control. Locus of control is the degree to which a person believes that his or her behavior has a direct bearing on the consequences of that behavior. According to the locus of control concept, individuals can be divided into two categories (internals and externals), with characteristics as outlined below: Internals – who tend to: Believe that they can control what happens to them in their lives. Accept responsibility for their own behavior and the resulting consequences of success or failure. Be more effective at collecting and using information. Be more effective at applying past experience to improve performance. Not suffer from anxiety under stressful situations. Externals –who tend to: Believe that what happens to them in their lives is the result of fate or luck. Believe that their lives are in the control of others, so they excuse failure by blaming others or situational factors. Do little in an effort to improve their situations, believing that such actions are a waste of time. Depend on others and on luck or fortune. Suffer from anxiety under stressful situations. LECTURETTE 13.2: Pay as a Motivator IS PAY A MOTIVATOR OF WORK BEHAVIOR? Most students make the mistake of believing that money is one of the strongest motivators of work-related performance. Students may have a higher-than-usual opinion of money simply because they don’t have any, and they may believe that they can buy job satisfaction and happiness. Students are advised not to take that entry-level job based on salary alone because they will soon learn to their regret there are more important things to consider in a job and career. Arguments for and against pay as a motivator are presented below. ARGUMENTS FOR PAY AS A MOTIVATOR Money can motivate people because it can be used to satisfy human needs. Consider the following examples of how pay can be used to satisfy Maslow’s Hierarchy of Needs: Maslow’s needs How needs can be satisfied by pay Physiological Needs Food, clothing, housing Safety and Security Needs Investments, retirement plans, insurance, savings Social Needs Membership in clubs and associations Esteem Needs Designer clothes, expensive cars, jewelry, and other status products Self-Actualization Needs (Pay cannot buy self-actualization) Pay-for-performance: Provides the necessary connection between work-performance and performance evaluation and consequent rewards (or the lack of it). Can provide employees with a sense of ownership in and commitment to the employing institution. Can be used to challenge employees to better work performance. Gives the employing institution more “bang” for its compensation buck. ARGUMENTS AGAINST PAY AS A MOTIVATOR Rising income tax scales tend to reduce the reward value of pay increases. The amount of money available to the employing institution for take-home pay is limited by escalating costs of employee benefit programs. The amount of money available to the employing institution for take-home pay is limited by the fierce international competition from foreign firms with lower operating costs, especially salary costs. The significance of money earned at work is diminished by unemployment insurance and the many forms of social welfare. It is difficult to estimate the amount of pay increase a worker might perceive to be sufficient to overcome the pressures of inflation, rising job aspirations, and increasing expectations with respect to “entitlements to the good life.” Pay plans are usually based on fixed interval scales, which are not as effective as those based on variable ratio scales. The common use of time-based pay plans erodes the perception of a contingency connection between performance and pay, and studies show that pay loses its motivational power when effort is not directly related to pay. Not much is known about the psychological meaning and motivating potential of money. The meaning of money lies in “the eye of the beholder.” Pay has been found to attenuate the effect of rewards such as challenge and responsibility. Pay has been found to produce negative work performance. WHAT’S THE ANSWER? CAN PAY BE A MOTIVATOR? Herzberg’s approach to motivation stipulates that pay can be a demotivator, never a motivator. Following the Herzberg concept, pay below a person’s “threshold level” of pay/worth will cause the worker to become dissatisfied with the job. However, paying the person at or above the person’s “threshold level” will neutralize pay as a dissatisfier so that satisfiers (such as responsibility and challenge) can be used to motivate behavior. Using Maslow’s Hierarchy of Needs Theory, pay can be a motivator if the worker can perceive how the pay can be used to buy need satisfaction. When pay is used in an effort to motivate performance, it is necessary to use a pay-for-performance plan that clearly assigns pay on the basis of performance. Pay-for-performance will not work effectively for all workers. It may motivate internals if the plan is objective and equitable. Pay-for-performance will never motivate externals. Instructor Manual for Management: Leading and Collaborating in a Competitive World Thomas S. Bateman, Scott A. Snell, Robert Konopaske 9781259927645, 9781259546945