CH-5 Motivation at Work – Organizational Behavior: Science, The Real World, and You : Book Guide

5. MOTIVATION AT WORK REVIEW QUESTIONS: suggested answers How can knowledge of motivation theories help managers? Answer: The workforce is increasingly diverse. Knowledge of motivation theories can help managers use a variety of techniques for motivating employees with a wide range of needs, interests, and abilities. What are the five categories of motivational needs described by Maslow? Give an example of how each can be satisfied. Answer: The needs hierarchy begins with fulfilling physiological needs, such as food and shelter. The second level involves safety and security needs that are satisfied by a feeling of safe surroundings, such as a well-lit environment in which to work. Family and friends can meet third level needs for love and social relationships. Fourth is the esteem need, which can be satisfied by titles and actions that earn respect from others. The final level is the self-actualizing need, which is the need to achieve one's full potential. What are the Theory X and Theory Y assumptions about people at work? How do they relate to the hierarchy of needs? Answer: Theory X is a skeptical, negative view of individuals and their relationship to tasks and work. Theory Y views individuals as highly motivated and responsible for their actions. Theory X individuals would be concerned with the lower three levels of Maslow's needs, and Theory Y individuals are concerned with the higher-order needs. What three manifest needs does McClelland identify? Answer: McClelland identifies needs for achievement, power, and affiliation. These needs are learned. Individuals and cultures differ in their levels of these needs. How do hygiene and motivational factors differ? What are the implications of the two-factor theory for managers? Answer: Hygiene factors are factors such as supervision, work policies, and working conditions. Hygiene factors can prevent dissatisfaction, but do not lead to satisfaction. Motivational factors include a sense of achievement, recognition, and responsibility. Motivational factors may lead to satisfaction. Managers need to realize that both contribute to workers' attitudes toward the job. What are two new ideas in motivation that managers are using? Answer: The first of two new ideas in motivation being used by managers focuses on eustress, strength, and hope. This perspective focuses on individuals’ interpretations of events. The second centers on positive energy and full engagement. In this view, the manager’s task is to help individuals learn to manage their energy so that they can experience periodic renewal and recovery and thus build positive energy and capacity for work. How is inequity determined by a person in an organization? How can inequity be resolved if it exists? Answer:Individuals in organizations calculate equity through a concept of social exchange. This intuitive exchange compares the demands versus the contributions of individuals in an environment. A person compares his/her input/outcome ratio to the same ratio for another person. The strategies for remedying an inequitable situation include (1) altering one's outcomes, (2) altering one's inputs, (3) altering the comparison other's outputs, (4) altering the comparison other's inputs, (5) selecting a different comparison other, (6) rationalizing the inequity, and (7) leaving the organizational situation. What are the key concepts in the expectancy theory of motivation? Answer: This theory focuses on personal perceptions of desired outcomes of behavior, in conjunction with effort and performance. Valence is the value placed on the anticipated reward. Expectancy is the belief that effort will lead to performance. Instrumentality is the belief that performance is related to the rewards. DISCUSSION and communication QUESTIONS: suggested answers What do you think are the most important motivational needs for the majority of people? Do you think your needs differ from those of most people? This is similar to the research question that asks what motivates supervisors versus what motivates employees. Most of us think our motives are superior and deeper than the rest of the organizational members. No one wants to be merely normal or average. Most of us may share lower level needs, but there may be differences in the higher level needs. Important Motivational Needs for Most People 1. Basic Needs: According to Maslow's hierarchy of needs, the most fundamental needs are physiological needs (e.g., food, water, shelter) and safety needs (e.g., security, stability). These needs are critical for survival and comfort. 2. Social Needs: Many people seek social belonging and relationships. This includes the need for love, friendship, and a sense of community. 3. Esteem Needs: The desire for self-esteem and recognition is also significant. People often strive for respect from others, achievement, and a sense of competence. 4. Self-Actualization: The need for personal growth, self-fulfillment, and realizing one's potential is important for many, though it tends to become a priority once basic needs are met. Personal Reflection: My needs align with these general motivational needs, but there might be some variation in priorities. For instance: • Personal Values: My personal values might place a higher emphasis on self-actualization and achievement, while others might prioritize social connections or financial stability more. • Life Stage and Context: My current stage in life and specific circumstances (e.g., being a student or entering the workforce) might shift the emphasis among these needs. For instance, academic and career aspirations might be more prominent, compared to someone who is more focused on establishing a family or achieving financial security. In summary, while most people share common motivational needs, individual priorities can vary based on personal values, life stages, and circumstances. At what level in Maslow's hierarchy of needs are you living? Are you basically satisfied at this level? Answer: One of the difficulties with this question is that we typically move up and down the scale in different phases of our lives, or different surroundings. Students may not grasp this readily. Level in Maslow's Hierarchy of Needs As a college student, I am likely operating primarily at the esteem level of Maslow's hierarchy. Here’s a breakdown: 1. Physiological Needs: These are generally met, as basic necessities such as food, water, and shelter are typically provided, either by myself or through support systems like family or student services. 2. Safety Needs: Safety needs are also generally satisfied, given that there is a stable environment provided by housing, health services, and other institutional supports. 3. Social Needs: Social needs might be actively pursued through friendships, peer interactions, and involvement in campus activities. Developing a sense of belonging and community is important at this stage. 4. Esteem Needs: A significant focus is likely on building self-esteem through academic achievements, skill development, and gaining recognition for accomplishments. Success in these areas can greatly influence overall satisfaction. 5. Self-Actualization: This level may be in progress as well, with a focus on personal growth, exploring potential, and setting long-term goals. However, full self-actualization might be more relevant in later stages of life. Satisfaction at This Level: • Academic and Career Goals: If I am achieving academic goals and receiving recognition for my work, I might feel relatively satisfied at the esteem level. • Personal Fulfillment: Engagement in activities that align with personal interests and long-term goals also contributes to satisfaction. • Challenges: There might be challenges, such as balancing academic pressures with personal development, that could impact overall satisfaction. In summary, while I am likely focused on esteem and self-actualization needs, satisfaction at this level can vary based on personal achievements, goal progress, and how well these needs are being met. Assume you are leaving your current job to look for employment elsewhere. What will you look for that you do not have? If you do not have a job, assume you will be looking for one soon. What are the most important factors you will seek? Answer: This should relate to where students are on their needs hierarchy. Encourage students to use the terminology of motivational factors that they learned in this chapter. Students may also use equity theory and expectancy theory concepts to explain what they seek in a job. Factors to Look for in a New Job 1. Career Growth Opportunities: • Reason: Look for roles that offer clear paths for advancement and opportunities to develop new skills. This helps in building a long-term career and achieving personal and professional goals. 2. Work-Life Balance: • Reason: Seek positions that offer flexibility and support for maintaining a healthy balance between work responsibilities and personal life. This is crucial for long-term job satisfaction and overall well-being. 3. Company Culture and Values: • Reason: A positive work environment and alignment with the company's values can significantly impact job satisfaction. Look for organizations with a culture that supports diversity, inclusion, and aligns with personal values. 4. Compensation and Benefits: • Reason: Competitive salary and comprehensive benefits packages (e.g., health insurance, retirement plans) are important for financial stability and job satisfaction. 5. Challenging and Engaging Work: • Reason: Roles that provide meaningful and challenging work can keep you motivated and engaged. Look for jobs that align with your interests and allow you to leverage your strengths. 6. Supportive Management and Team: • Reason: Having a supportive manager and collaborative team can enhance job satisfaction and personal growth. Seek out workplaces with strong leadership and a positive team dynamic. In Summary: When looking for a new job, focus on career growth, work-life balance, company culture, compensation, engaging work, and supportive management. These factors contribute to a fulfilling and sustainable career. If you were being inequitably paid in your job, which strategy do you think would be the most helpful to you in resolving the inequity? What tactics would you consider using? Answer: Adams's theory of inequity is a logical approach to this problem. The resolution of inequity strategy could be to alter the input, to leave the organization, to alter the comparison other's input, or any of the ways of restoring equity. Students can also compare themselves in terms of equity sensitivity, benevolence, or entitlement. If faced with inequitable pay, the most helpful strategy would likely be to engage in open and constructive dialogue with your manager or HR. This approach allows for a direct discussion about your concerns and provides a platform to present your case. Here are some key tactics to consider: 1. Prepare a Solid Case: • Tactic: Gather evidence of your accomplishments, performance metrics, and any industry salary benchmarks. Demonstrating how your contributions align with the company’s goals and how your compensation compares to market standards can strengthen your case. 2. Request a Formal Review: • Tactic: Schedule a meeting with your manager or HR to discuss your compensation. Frame the conversation around your performance and contributions rather than focusing solely on the disparity. Request a performance review or salary evaluation if one is not already scheduled. 3. Highlight Your Value: • Tactic: Emphasize how your work has positively impacted the company. Discuss specific projects, responsibilities, or results that showcase your value and contributions. This can help justify why a pay adjustment may be warranted. 4. Explore Alternatives: • Tactic: If a direct salary increase is not possible, consider negotiating other forms of compensation, such as bonuses, additional benefits, professional development opportunities, or flexible work arrangements. 5. Stay Professional: • Tactic: Approach the situation with a professional and constructive attitude. Avoid expressing frustration or dissatisfaction in a manner that could be perceived as confrontational. Instead, focus on a collaborative discussion aimed at finding a resolution. 6. Consider Long-Term Implications: • Tactic: Assess whether the issue of pay inequity is a symptom of a broader problem within the organization, such as a lack of career progression opportunities or systemic issues with compensation practices. This can help you decide whether to stay with the company or seek opportunities elsewhere. In Summary: To resolve pay inequity, prepare a well-documented case, request a formal review, highlight your value, explore alternative compensation options, maintain professionalism, and consider the broader implications of the issue. These tactics can help address the inequity effectively. Do you believe you can do a better job of working or studying than you are currently doing? Do you think you would get more pay and benefits or better grades if you did a better job? Do you care about the rewards (or grades) in your organization (or university)? Answer: The first portion of the question relates to tangible, self-motivated goals. Most students will answer yes to being able to do a better job. Occasionally students are so overloaded that they have assessed the obligations in their lives (work, school, and family) and determined that they will have to balance their efforts. The underlying theme is whether all of their current motivation rests in predicable, tangible, outcomes. Believing you can improve your performance at work or in your studies is a common self-reflective process. Here’s a breakdown of how this can impact your outcomes: 1. Improvement Potential: • Self-Assessment: If you believe you can do a better job, this reflects an awareness of your potential and areas for improvement. This mindset can drive you to enhance your skills, adopt better study or work habits, and strive for higher performance. 2. Rewards and Outcomes: • Impact on Pay and Benefits: Generally, improving performance can lead to better pay and benefits. In a work environment, higher performance often results in promotions, raises, or bonuses. In academic settings, it can lead to higher grades and potentially more opportunities like scholarships or internships. • Impact on Grades: Higher performance in your studies typically results in better grades. This improvement can also open doors to advanced programs or job opportunities. 3. Value of Rewards: • Personal Motivation: Caring about rewards or grades can be a significant motivator. If you value the recognition, financial incentives, or academic achievements, improving your performance to achieve these rewards becomes more important. • Intrinsic vs. Extrinsic Motivation: Some people are driven more by intrinsic rewards (personal satisfaction and achievement) than extrinsic ones (pay, grades). Understanding what motivates you can help tailor your efforts effectively. Summary: If you believe you can improve your work or study performance, it can lead to better pay, benefits, or grades. The degree to which you care about these rewards often influences your motivation and effort. Recognizing your potential for improvement and understanding what you value can help guide your actions and achieve desired outcomes. What important experiences have contributed to your moral and ethical development? Are you working to further your own moral maturity at this time? Answer: This is a difficult, but thought-provoking question, to answer in class. This question is better for a homework review question, and is an excellent question for an essay exam. Students can assess their own level of moral maturity. Important experiences that contribute to moral and ethical development often include: 1. Personal Experiences: • Challenges and Choices: Facing and overcoming ethical dilemmas, such as deciding whether to report a wrongdoing or handle a difficult situation honestly, helps shape one's moral framework. • Relationships and Mentorships: Learning from mentors, family, and friends who model ethical behavior can significantly influence your own values and decision-making. 2. Educational and Professional Experiences: • Academic Learning: Courses and discussions on ethics in various subjects can deepen understanding of moral principles and how they apply to real-world situations. • Workplace Situations: Navigating ethical issues at work, such as handling conflicts of interest or maintaining integrity under pressure, contributes to moral growth. 3. Community Involvement: • Volunteering and Service: Engaging in community service or working with diverse groups exposes you to different perspectives and reinforces the importance of empathy and ethical conduct. Current Efforts to Enhance Moral Maturity: • Reflective Practice: Regularly reflecting on your actions and decisions helps ensure they align with your values and ethical standards. • Continuous Learning: Engaging in ongoing education about ethics and participating in discussions or workshops on moral issues contribute to personal growth. • Seeking Feedback: Getting input from others about your ethical behavior and being open to constructive criticism can aid in improving moral maturity. Overall, actively working on these areas can help further develop your moral and ethical maturity over time. Prepare a memo describing the two employees you work with who most closely operate according to Theory X and Theory Y assumptions about human nature. Be as specific and detailed in your description as you can, using quotes and/or observational examples. Answer: Students who are not in a work setting could describe other students with whom they have worked closely (e.g., in group projects). During discussion of these memos, it would be interesting to also discuss how managers in each of the work settings dealt with each of these employees. Memo To: [Recipient’s Name] From: [Your Name] Date: [Date] Subject: Employees Operating According to Theory X and Theory Y Assumptions Employee Operating According to Theory X Assumptions: Employee Name: John Smith Description: John Smith exemplifies Theory X assumptions, which posit that employees are inherently lazy, require close supervision, and avoid responsibility. His approach to work reflects a belief that employees need to be controlled and motivated primarily through extrinsic rewards and punishments. Observational Examples: • Lack of Initiative: John frequently needs explicit instructions and detailed supervision to complete tasks. For instance, he often asks for step-by-step guidance on routine assignments, reflecting a lack of self-motivation. Recently, John required constant follow-ups on a project that involved basic tasks he had handled before. • Avoidance of Responsibility: John tends to avoid taking responsibility for errors or additional tasks. During a team meeting, when a project issue arose, John deflected blame to others and showed reluctance to offer solutions. This behavior aligns with Theory X's view that employees prefer to avoid responsibility and seek to evade work whenever possible. • Dependence on Supervision: John exhibits a high need for supervision. He frequently checks in for updates and clarification, demonstrating a lack of confidence in making independent decisions. For example, during a recent assignment, John sought approval for every minor decision, indicating a lack of trust in his own judgment. Employee Operating According to Theory Y Assumptions: Employee Name: Sarah Johnson Description: Sarah Johnson embodies Theory Y assumptions, which posit that employees are self-motivated, seek responsibility, and are capable of self-direction. Her approach to work is characterized by a high level of engagement, initiative, and personal responsibility. Observational Examples: • Proactive Behavior: Sarah consistently takes initiative and seeks out new challenges. For instance, she identified an opportunity to streamline a workflow process and independently developed a proposal for improvement, which she presented to the team without being prompted. Her proactive nature is a clear reflection of Theory Y assumptions that employees are motivated to contribute and find better ways to accomplish tasks. • Acceptance of Responsibility: Sarah willingly takes on additional responsibilities and does not shy away from complex tasks. Recently, she volunteered to lead a high-stakes project and successfully managed the team’s performance while also handling unexpected issues. This shows her comfort with assuming responsibility and her intrinsic motivation to excel. • Self-Direction: Sarah demonstrates a high level of autonomy and self-direction. She sets her own goals and works towards them with minimal supervision. For example, she developed a comprehensive plan for a long-term project and executed it effectively, demonstrating her ability to work independently and her belief in her own capability to manage her work. Conclusion: John Smith's behaviors align with Theory X assumptions, indicating a need for close supervision and motivation through external means. In contrast, Sarah Johnson’s actions reflect Theory Y assumptions, demonstrating self-motivation, initiative, and a willingness to take on responsibility. Understanding these differences can help tailor management strategies to better support each employee's needs and maximize their effectiveness in the workplace. [Your Name] [Your Position] Develop an oral presentation about the most current management practices in employee motivation. Find out what at least four different companies are doing in this area. Be prepared to compare these practices with the theory and research in the chapter. Answer: This is an excellent opportunity for students to learn about motivational programs that are actually being used by companies. During class discussion encourage students to evaluate the effectiveness of these programs based on the theories and research from the chapter. Oral Presentation: Current Management Practices in Employee Motivation Introduction: Good [morning/afternoon/evening], everyone. Today, we’ll explore the most current management practices in employee motivation by examining how four different companies approach this critical aspect of organizational behavior. We will also compare these practices with established theories and research from our textbook. 1. Google: Emphasizing Employee Autonomy and Innovation Current Practice: Google is renowned for its focus on fostering creativity and innovation through employee autonomy. The company offers “20% time,” which allows employees to spend up to 20% of their workweek on projects they are passionate about, even if they are not directly related to their core job responsibilities. Theory Comparison: This practice aligns with Herzberg’s Two-Factor Theory, which emphasizes the importance of motivating factors such as recognition and personal growth. Google’s approach also supports Self-Determination Theory (SDT), which highlights the need for autonomy as a key driver of intrinsic motivation. 2. Salesforce: Implementing Comprehensive Recognition Programs Current Practice: Salesforce has developed a robust recognition program known as "Ohana Culture," which focuses on acknowledging employees' contributions regularly. This includes peer-to-peer recognition, milestone celebrations, and personalized rewards to make employees feel valued. Theory Comparison: Salesforce’s recognition practices align with Maslow’s Hierarchy of Needs, particularly the esteem needs, where recognition plays a crucial role. It also supports the Equity Theory, as fair and consistent recognition helps in maintaining balance and reducing feelings of inequity among employees. 3. Netflix: Promoting a High-Performance Culture Current Practice: Netflix promotes a culture of high performance by offering significant autonomy and responsibility to employees, coupled with a focus on candid feedback and continuous improvement. Their approach includes "Freedom and Responsibility," where employees are trusted to make decisions and are held accountable for results. Theory Comparison: Netflix’s practices resonate with Theory Y, which assumes that employees are self-motivated and seek responsibility. It also aligns with Expectancy Theory, where the clarity of expectations and rewards based on performance drive motivation. 4. Zappos: Fostering a Strong Organizational Culture Current Practice: Zappos places a strong emphasis on company culture and employee happiness. They offer extensive training, promote from within, and have a unique “Culture Book” where employees contribute their thoughts on the company culture. Zappos also provides a “pay to quit” program to ensure that employees are genuinely committed. Theory Comparison: Zappos’s focus on culture and employee happiness aligns with the Job Characteristics Model (JCM), which emphasizes the importance of meaningful work and a supportive work environment. It also supports Herzberg’s Two-Factor Theory by addressing hygiene factors through a positive work environment and motivation factors through growth opportunities. Conclusion: In summary, the management practices at Google, Salesforce, Netflix, and Zappos illustrate diverse approaches to motivating employees, from fostering autonomy and innovation to comprehensive recognition programs and strong cultural values. These practices reflect key theories of motivation, such as Herzberg’s Two-Factor Theory, Maslow’s Hierarchy of Needs, Self-Determination Theory, and the Job Characteristics Model. By comparing these practices with theoretical frameworks, we gain a deeper understanding of how modern organizations effectively motivate their employees. Thank you for your attention. I’m happy to take any questions or discuss these practices further. [Your Name] [Your Position] Interview a manager and prepare a memo summarizing the relative importance she or he places on the needs for achievement, power, and affiliation. Include whether these needs have changed over time and what job aspects satisfy these needs. Answer: In class, students can compare the perspectives of the different managers they interviewed. Encourage the students to see if a pattern emerges among the managers regarding the importance of these needs. Discuss why students think there is or is not a pattern. Memo: Summary of Manager’s Needs for Achievement, Power, and Affiliation To: [Recipient Name] From: [Your Name] Date: [Current Date] Subject: Summary of Manager’s Needs for Achievement, Power, and Affiliation Introduction: This memo summarizes an interview with [Manager’s Name], focusing on their needs for achievement, power, and affiliation, as well as how these needs have evolved over time and which job aspects satisfy them. 1. Needs for Achievement: Importance: [Manager’s Name] places a high priority on the need for achievement. This need drives them to set challenging goals, seek feedback on their performance, and strive for excellence. They are motivated by a sense of accomplishment and the ability to overcome obstacles. Changes Over Time: Over the years, the manager’s need for achievement has intensified, particularly as they have taken on more leadership responsibilities. Initially, the focus was on personal accomplishment, but it has evolved to include organizational achievements and team success. Job Aspects Satisfying This Need: • Challenging Projects: Opportunities to work on complex and impactful projects that push their skills and knowledge. • Performance Feedback: Regular feedback and recognition for meeting or exceeding goals. • Career Advancement: Opportunities for promotions and career growth. 2. Needs for Power: Importance: The need for power is also significant for [Manager’s Name], though it is balanced with a focus on positive influence and leadership. They are motivated by the ability to influence decisions, shape organizational strategies, and lead teams effectively. Changes Over Time: Their need for power has become more nuanced over time. Initially, it was more about personal authority, but now it focuses on empowering others and making a broader impact on the organization. Job Aspects Satisfying This Need: • Leadership Roles: Positions that allow them to lead teams and make strategic decisions. • Influence in Decision-Making: Opportunities to participate in key organizational decisions and strategic planning. • Mentorship: The ability to mentor and develop other employees. 3. Needs for Affiliation: Importance: The need for affiliation is moderately important to [Manager’s Name]. They value strong interpersonal relationships and teamwork, and they derive satisfaction from being part of a cohesive and supportive work environment. Changes Over Time: The need for affiliation has remained relatively stable, but its expression has changed. Earlier in their career, it was more about building personal relationships; now, it involves fostering a positive team culture and organizational camaraderie. Job Aspects Satisfying This Need: • Team Collaboration: Opportunities to work closely with colleagues and build strong professional relationships. • Supportive Work Environment: A workplace culture that values and supports employee well-being and teamwork. • Social Interaction: Regular team meetings, social events, and collaborative activities. Conclusion: In summary, [Manager’s Name] places significant importance on the needs for achievement, power, and affiliation. These needs have evolved over time, with a growing focus on leadership and organizational impact, as well as a stable emphasis on positive interpersonal relationships. Understanding these needs can help tailor managerial practices and create a supportive environment that aligns with their motivational drivers. Please let me know if you need any additional information. [Your Name] [Your Position] ETHICal dilemma Using consequential, rule-based, and character theories, evaluate Jim’s options. Answer: Jim’s options are to retain Bill and try to find a way to motivate him, or fire Bill due to his substandard performance. Consequential—If Jim can find a way to motivate Bill, the result will be that Bill returns to his formerly excellent performance. Bill will keep his job and the company will benefit from his contribution. If Jim fires Bill, Bill will be out of work and the company will have to find someone to replace him, which could mean a costly search and substantial training at worst, or a series of internal changes at best. Rule-based—Jim’s obligation is to do what is best for the company, whether that means finding a way to motivate Bill again or firing him. This view of ethics is somewhat irrelevant in this particular situation because it doesn’t drive the decision. Character—Jim has always valued Bill as an employee and likes him as a person. He seems to be the kind of manager who tries to do everything he can to help his employees succeed. Retaining Bill and trying again to find a way to motivate him would be consistent with these traits, while firing him would contradict these traits. What should Jim do? Why? Answer: Jim should retain Bill and try again to find a way to motivate him, or at least find out if Bill’s change in performance has something to do with the departure of his youngest son for college. Although Jim has to be careful about prying into Bill’s home situation, he already knows about the youngest son’s departure and Jim and Bill are likely to be friends who discuss personal issues anyway. This course of action allows Jim to act in an ethical manner based on both the consequential and character views of ethics. EXPERIENTIAL EXERCISES 5.1 What Do You Need From Work? This exercise encourages students to think broadly about what they desire from a work experience. During Step 2 of this exercise (sharing of group results with the class) encourage discussion across groups regarding similarities and differences in ratings that might have occurred. In particular, have students consider why differences in ratings exist (i.e., because of differences in length of work experience, type of work experience, etc.). Discussion could also center on organizations’ effectiveness at meeting these needs (and why they are or are not effective). What to Do? This exercise presents students with a true-to-life illustration of equity theory. Discussion may focus on attributions for the inequity stemming from factors such as gender or parental status. Factors such as external labor market conditions, which also may contribute to pay inequity, may be discussed. Alternative Experiential Exercise Motivation: Three Incidents Instructor's Notes: Students are provided three incidents with 5 choices of actions. For each of the following incidents, students are asked to determine whether the individuals will be motivated to behave as desired. This exercise takes approximately thirty minutes of class time, with groups of 4-6 in each group. The first example is very quick, and students believe they have motivation theory "wrapped up.” The second example gets more complicated, and by the third example, most of them miss the issues. Expectancy theory, job characteristics model, and effort-performance relationship are all relevant for these examples. I. The key sentences in this example are, (1) He also knows that Walter needs a scholarship to be able to go to college, and (2) However, an article in the Sunday Sports section reports that two of the major state university coaches are recruiting him. A. Has nothing additional for motivation. Walter already knows this. B. This isn't Walter's valence; probably knows this as well. C. This answer does not increase valence for THIS school. D. Best answer; this approach would be unique to this school and deals with Walter's needs. E. Doesn't deal with the problem. II. Joyce's sales are instrumental to incentive bonus; therefore, there is high valence for Joyce. A. This approach is useful only if you need to build effort to performance expectancy. B. She knows this already. C. Goal is high valence, not necessarily the answer. D. Best answer. Use if problem-solving or ability is the issue. Looks like a "know-how" problem. E. Apparently, she doesn't know how to improve. III. They are likely to begin cooperating now anyway. Very few students select E because they believe we are always to DO SOMETHING. Many students pick up on the issues of the U.S. in another country. The key to this answer is that none of the previous choices, A-D provide anything in motivation theory that has not already been provided. This is wasted effort to duplicate the same approaches. * SOURCE: Conrad Jackson, The University of Alabama, Huntsville. Motivation: Three Incidents For each of the following incidents, determine whether the individuals will be motivated to behave as desired. Then select the appropriate managerial action from those listed. I. Frank Edwards is head basketball coach at a small regional state university, a campus of the state's main university system. He has just had a visit with Walter Johnson, a local high school athlete who is clearly one of the state's blue chip basketball prospects. Frank desperately needs a player of Walter's potential to turn his mediocre team around, but he realizes that it won't be easy to sign him. He is confident that he made it clear to Walter that there is a scholarship available for Walter if he wants it. He also knows that Walter needs a scholarship to be able to go to college. However, an article in the Sunday Sports section reports that two of the major state university coaches (larger schools upstate, with nationally known basketball programs) intend to actively recruit Walter, also. Coach Edwards should take which of the following actions? A: Send Walter a written and notarized offer of the scholarship. B: Write Walter's parents, stressing that the scholarship will cover all of his tuition, room and board, and book expenses. C: Write a letter to Walter stressing to him the value of a college education. D: Talk to Walter again, stressing the likelihood that he would make the starting five in his freshman year. E: Do nothing. Walter will probably sign with him anyway. II. Joyce, a recent College of Business graduate, has been working several months as a sales person for a small manufacturer of computers and word processors. She is one of two sales people working a large metropolitan area. Her sales manager, Eric Kurtz, is concerned about her performance, however. He is aware that Joyce wants very much to have high sales in order to participate in the company's generous incentive bonus plan. She has expressed her satisfaction with the way the plan operates, and was clearly in agreement that there is a booming demand for computers and word processors in the market area. He is puzzled, therefore, by her poor performance. He should take which of the following actions? A. Post sales performance figures in the office so that everyone can see how the sales persons are doing. B. Have a talk with Joyce, stressing the details of how she can benefit financially from increased sales. C. Tell Joyce that unless she begins to reach her quota within the next three months, she will be terminated from employment. D. Ask Joyce to accompany him on sales calls to several new customers. E. Do nothing. Her performance should soon be improving. III.Motumba is a small African nation with rich deposits of several rare metals. Tall, forbidding mountains to the North and West make it impossible to ship out ore in these directions. Kobutsu, the country bordering on their East has a modern deep-water port city, and an extensive rail network, which make it a logical alternative route for shipping out the ore. However, due to a long-running conflict between the heads of state of the two countries, Kobutsu has not allowed Motumban ore to be transported to and through its port, and Motumba has been forced to settle for sending out small quantities through the neighboring country to the south via a long route of antiquated rail facilities. Recently, however, the government of Kobutsu changed, with a new head of state coming to power who had a reputation of being friendly toward the Motumbans and cognizant of the potential benefits to Kobutsu of serving as a transportation route for their ore. As U.S. Department of State envoy to that area, your action should be: A. Meet with the Kobutsun head of State, stressing the potential benefits of being a transportation link for Motumban ore. B. Meet with the Kobutsun head of State and point out the opportunity present for a new constructive relationship with Kobutsu. C. Send a letter to the Kobutsun Minister of Commerce stressing the likelihood of being able to work out a trade agreement with Motumba. D. Invite both heads of State to the U.S., and tell both of them that the U.S. will cut off all economic aid to them if they do not begin to cooperate. E. Do nothing. They are likely to begin cooperating now anyway. EXTRA EXPERIENTIAL EXERCISES The following alternative exercises to supplement the material in the textbook can be obtained from: Marcic, Dorothy, Seltzer, Joseph, & Vaill, Peter. Organizational Behavior: Experiences and Cases, 6th Ed. South-Western College Publishing Company, 2001. Work vs. Play. p. 49-51. Time: Part A, 40-55 minutes; Part B, 30-55 minutes. Purpose: To examine the concept of motivation. Motivating the Simpsons. p. 45-47. Time: 20 minutes. Purpose: To apply expectancy theory. Fandt, Patricia M. Management Skills: Practice and Experience. West Publishing Company, 1994. In-Basket Exercise: Initiating and Maintaining Action. p. 61-62. In-Basket Exercise: Holding Others Accountable. p. 69-72. TAKE 2 BIZ FLIX: Friday Night Lights (I) PPT Slide 33 Organizations Discussed: Permian High School The Odessa, Texas passion for Friday night high school football (Permian High Panthers) comes through clearly in this cinematic treatment of H. G. (Buzz) Bissinger’s well-regarded book of the same title. Coach Gary Gaines (Billy Bob Thornton) leads them to the 1988 semifinals where they must compete against a team of much larger players. Fast-moving pace in the football sequences and a slower pace in the serious, introspective sequences give this film many fine moments. Motivation: “Can you get the job done, Mike?” This scene starts with a panning shot of the Winchell’s house. Coach Gaines says to Mike Winchell (Lucas Black), “Can you get the job done, Mike?” The scene follows a harsh practice and Mike talking to someone from a telephone booth. The film continues with the Odessa-Permian vs. Cooper football game. What to Watch for and Ask Yourself PPT Slide 40 This chapter defined motivation as “the process of arousing and sustaining goal-directed behavior.” Does Mike Winchell show the characteristics of this definition early in the scene? Do you expect him to show any of the characteristics after the scene ends and he returns to the team? Answer: Mike’s early behavior in the scene shows extreme uncertainty about going forward. He is more concerned about his mother than himself. Mike also answers the coach’s questions with uncertainty while he plays with the toy car. Coach Gaines helps him focus on his future. Gaines urges Mike to get out of that house and focus more on himself than on his mother. Which needs discussed earlier in this chapter does Mike appear focused on early in the scene? Which needs can become his focus later in the scene? See the “The Hierarchy of Needs” and “ERG Theory” sections earlier in this chapter for some suggestions. Answer: Mike focuses on lower order needs, especially safety needs early in the scene. Coach Gaines guides him to a focus on higher order needs such as esteem and self-actualization. Apply “McClelland’s Need Theory” to this scene. Which parts of that theory appear in this scene? Give specific examples. Answer: Coach Gaines tries to focus Mike on the need for achievement. Mike does not have that focus early in this scene. It begins to show toward the end of the scene as Coach Gaines continues his encouragement. WORKPLACE VIDEO: Urban Escapes Video Case Synopsis When today’s young professionals look to take a break from the busy city life, they look to Urban Escapes. Founded in 2008 by Maia Josebachvili and Bram Levy, the social travel firm has earned high praise for its vast array of exciting outdoor adventures. From whitewater rafting in the Poconos to camping in the Catskills, the company’s guided trips help customers escape the bubble and recapture the lust for life. For the Urban Escapes employees working behind the scenes to deliver “Zen Escape Yoga Hikes” and “Boulder and Brew Tours,” motivation comes naturally. The company’s managers and guides are driven by the freedom and opportunity that only a start-up company can offer. “We gave everyone a lot of ownership in their cities,” Josebachvili says of her guides. “Initially, we said every time you want to run a trip, you run it by us. Within a few months, I was like, ‘Okay, if you know it’s going to work, don’t come to us—you got this’. After a year, I felt really good about what they were doing.” According to Levy, founding a company taught him important lessons about people and motivation. “When people are excited about something, they’ll do virtually anything,” Levy states. “We had employees across the country working for us for virtually no income and no stability, and merely because they enjoyed what we had to offer, and because they were having fun.” Since 2008, the Urban Escapes roster has grown to more than eight directors, twenty city managers, and dozens of adventure guides. Josebachvili claims that the company’s directors, many of whom are in their mid-twenties, are excited about rapid expansion. “We’re asking someone who is 23 years old to manage five different cities and city managers,” she says. Employees respond positively to the difficult challenge, and if the company succeeds, they also share in the financial rewards—and even part time guides get bonuses. But at this early stage, working for Urban Escapes is not about stability or following a traditional career path. To a large degree, it’s about adventure. “We’re selling the non-traditional path,” Levy states. “We’re selling the opportunity to do something truly unique and different and fun.” Discussion Questions and Solutions Which needs in Maslow’s hierarchy are most important to the employees who work for Urban Escapes, and how can managers use this information to develop a highly motivated workforce? Answer: Urban Escapes is about adventure, new life experiences, and the great outdoors. People who work at the social travel firm are dedicated to fulfilling their higher order needs, such as self-actualization needs, esteem needs, and belongingness needs. The guided trips bring together large groups of travelers, and the destinations include action-filled outdoor activities. Levy conveys the mindset of his employees when he notes that they worked “for virtually no income and no stability because they enjoyed what we had to offer and were having fun.” Managers can utilize this knowledge to better reward individuals who experience life at the higher levels of Maslow’s needs pyramid. For the typical Urban Escapes employee, traditional pay and benefits packages may pale in comparison to special travel perks, paid leave for personal trips, or gifts related to outdoor gear and apparel. According to equity theory, how might an Urban Escapes guide react if he or she feels underpaid or unappreciated? Answer: Although employees at Urban Escapes aren’t necessarily “in it for the money,” every employee desires equitable pay and treatment, and people are motivated to act when they find themselves in situations of inequity or unfairness. People who feel underpaid relative to their contributions or in comparison to others may respond in several ways. For instance, if an employee of Urban Escapes feels underpaid, he or she might gradually make less of an effort on the job or begin to miss work more frequently (decrease inputs). An assertive employee, however, might ask superiors for a raise or promotion (increase outcomes). Another employee may cope with perceived inequity by artificially inflating the status of his or her position (change perceptions of outcomes). Finally, an employee who cannot change his or her situation is likely to leave the company and look elsewhere. New perspectives on equity theory suggest that three individual dispositions may also influence the response to inequity: Equity Sensitives respond as the original theory suggests, Benevolents will tolerate an equity ratio less than that of their comparison other, and Entitleds feel comfortable with an equity ratio greater than that of their comparison other. What outcomes or rewards possess high valence for the managers and guides who work at Urban Escapes? Answer: According to the expectancy theory of motivation, employees find some rewards to be highly attractive and motivational. The value or importance one places on a particular reward is called valence. For local guides, pay does not necessarily possess high valence; however, the freedom to plan and lead amazing trips at the company expense is highly attractive. For the company’s city managers who fulfill traditional managerial duties, high pay and good benefits are likely to prove motivational, along with bonus rewards for hitting goals. For all Urban Escapes employees, profit sharing or ownership is likely to be a desired outcome, as Urban Escapes is a startup company, and founding employees of start-ups typically share in the financial rewards of ownership and acquisitions. For any valence to be motivational, Urban Escapes employees must believe that their work efforts will lead to performance (expectancy). They must also believe that performance will lead to the desired outcome (instrumentality). Any breakdown in this chain of expectancy can threaten employee motivation. CASE SOLUTION: Compensation Controversies at AIG Linkage of Case to Chapter Material This case focuses on the controversial $165 million in retention bonuses paid to employees of the Financial Products unit of the American International Group (AIG), a behemoth insurance and financial services company. In early 2008, employees in the Financial Products unit were asked to remain with the company through the unit’s shutdown and, essentially, to work themselves out of a job. To entice talented employees to stay and work through the shut-down, a contractual retention bonus plan was instituted. When the bonuses were paid in early 2009, controversy and outrage arose given that AIG was the recipient of a substantial amount of United States government bailout money under its Troubled Assets Relief Program (TARP). Amid this controversy, Edward Liddy, AIG’s CEO, requested the bonus recipients to return half of the bonus amount. Some Financial Products employees decided to return their bonuses; others opted to keep their bonuses. Many affected Financial Products employees felt betrayed by AIG because of repeated reassurances of the bonus payments under contractual obligations. Subsequently, Kenneth Feinberg, the federal government’s overseer of executive compensation at AIG and other major TARP recipients, played a key role in addressing the controversy over the AIG retention bonuses. He made several controversial decisions with respect to compensating AIG’s executives. The case is related to multiple motivational concepts. Internal needs reflect the reasons for which the employees chose to remain employed with AIG during the process of winding down the Financial Products business. External incentives reflect the retention bonus payments. In addition, needs theories of motivation can be invoked to provide perspective on what seem to be important motivational factors for the Financial Products employees. Equity theory and the individual/organizational exchange (or social exchange) relationship are highly relevant to the caseand, arguably, provide the best explanation of the behavioral dynamics described in the case. Both perspectives help in explaining and understanding employees’ reactions to being asked to return part of their bonuses in the wake of the outrage expressed by the public and the federal government. Expectancy theory also can be applied to the case facts by examining the impact of expectancy, instrumentality, and valence on the motivation of the Financial Products employees. Suggested Answers for Discussion Questions What types of work behaviors did AIG intend to encourage through its retention bonus plan? Answer: Because the employees of the Financial Products unit were actually being asked to work themselves out of a job by helping to wind down the business, AIG had to engender the commitment and loyalty of those same employees. In addition to these key behaviors, AIG needed the employees to exercise business acumen and shrewdness to realize the best possible price in selling off the assets of the Financial Products unit. Which needs seem to be important to the employees of AIG’s Financial Products unit? Answer: Given that some of AIG’s Financial Products employees contracted for an annual salary of $1 with the opportunity to earn substantial bonuses, a powerful argument can be made that lower-order needs are not especially relevant here. In addition, the fact that 73 Financial Products employees received $1 million or more in bonus payments indicates that basic human needs certainly were not unfulfilled. The Financial Products employees very likely were motivated by the higher-order needsesteem and self-actualization in Maslow’s need hierarchy, achievement motivation in McClelland’s needs theory, and motivation factors in Herzberg’s two-factor theory. Employees of the Financial Products unit probably viewed winding down the business to be a challenge that they could meet. They also may have viewed the bonuses as symbolic representations of the value of their contributions to the Financial Products unit. Moreover, since they were being paid large sums of money to stay with AIG and help wind down the Financial Products unit, these employees may have thought, “I must be really good if AIG is paying me this much money to retain me through the wind-down process!” Such a perception certainly indicates ego-involvement, which in turn is suggestive of the higher-order needs. Using the model of the individual-organizational exchange relationship, explain the relationship that employees of AIG’s Financial Products unit believed they had with the company. How was this exchange relationship violated? Answer: The individual-organizational exchange relationship (or social exchange relationship) is based on the demands and contributions of the employees (i.e., individuals) and AIG (i.e., the organization). AIG initiated the process of shutting down the Financial Products unit, and in doing so asked the employees of that unit to remain with the organization while winding down the business and essentially working themselves out of their jobs. Substantial bonuses, which were not linked to performance on the downside, were offered as an inducement to remain on the job. In short, AIG demanded loyalty and help in unwinding the business, making as much money for the company as possible. In exchange, the employees would receive substantial bonuses, without AIG imposing any risk on the employees for poor performance (i.e., paper losses). The employees’ contributions were: working to sell off the assets of the Financial Products unit for the best price possible; working long hours and sacrificing family time; working themselves out of a job; and, in some instances, having already supplied many years of dedicated service and/or accepting an annual salary of $1 in the final year. The employees’ demands were to receive the bonusesmany of which were very substantialfor which they had contracted when agreeing to remain with AIG and help wind down the Financial Products unit. Instead, the employees were subject to much criticism for getting bonuses subsequent to the government bailout, and in response to AIG’s CEO, Edward Liddy, request that employees to return half their bonus. Without a doubt, the employees perceive that an inequitable exchange relationship exists. The employees expected to receive the retention bonuses for which they had contracted in exchange for working themselves out of jobs. Then AIG’s leadership, reacting to governmental and public pressure, sought to alter a contractual obligation. This sense of inequity in the individual- organizational exchange relationship for the employees of the Financial Products unit is perhaps best conveyed in the comments of Jake DeSantis, the Financial Products unit executive who wrote the following in his New York Times Op-Ed open letter to CEO Liddy: “After 12 months of hard work dismantling the company—during which A.I.G. reassured us many times we would be rewarded in March 2009—we in the financial products unit have been betrayed by A.I.G. and are being unfairly persecuted by elected officials. In response to this, I will now leave the companyI take this action after 11 years of dedicated, honorable service to A.I.G. I can no longer effectively perform my duties in this dysfunctional environment, nor am I being paid to do so. Like you, I was asked to work for an annual salary of $1, and I agreed out of a sense of duty to the company and to the public officials who have come to its aid. Having now been let down by both, I can no longer justify spending 10, 12, 14 hours a day away from my family for the benefit of those who have let me down.” Which motivation theory do you think has the most relevance for understanding the responses of the Financial Product employees to the implementation and unraveling of the retention bonus plan? Explain the reasoning behind your answer. Answer: The equity theory of motivation has the most relevance for explaining the situation with the implementation and unraveling of the retention bonus plan. The facts cited in the suggested answer to the previous question with respect to the demands and contributions of the employees in the individual/organizational exchange relationship are relevant here as well. With respect to inputs, the employees worked to sell off the assets of the Financial Products unit for the best price possible; worked long hours and sacrificed family time; worked themselves out of a job; and, in some instances, had contributed many years of dedicated service and/or accepted an annual salary of $1 in the final year. In terms of outcomes, the employees received bonuses, part of which they were asked to return subsequent to the governmental and public outrage about the bonuses. In addition, some employees and their families were being harassed and some employees felt they were betrayed by AIG’s leadership. From an equity theory perspective, this is a clear case of perceived underpaymenteven though, in absolute monetary terms, the bonuses were astronomical compared to the ordinary citizens’ frame of reference. In discussing this question, students could invoke the motivational perspective of expectancy theory. In expectancy theory, motivational force is a multiplicative function of expectancy, instrumentality, and valence. Expectancy is the belief that effort leads to performance, which in the case of AIG’s employees would reflect the belief that, by remaining with the company and working on selling off the assets of the Financial Products unit (i.e., effort), the result would be the closing of the business, while minimizing losses but hopefully making a profit, and working themselves out of a job (i.e., performance). Instrumentality is the belief that performance is related to rewards; in this case, employees winding down the Financial Products business and working themselves out of job would generate the bonuses for which they had contracted (i.e., the rewards). Valence is the value or importance the employees place on a particular reward; the bonuses are a highly valued reward for AIG employees. From the expectancy theory perspective, expectancy is high and valence is strongly positive but instrumentality is low. Rather than performance leading to desired rewards, performance led to public and governmental outrage, harassment, and the request to return 50 percent of the bonus payment. Because of the multiplicative relationship among expectancy, instrumentality, and valence, work motivation would be diminished because instrumentality is low even though expectancy and valence are high. The amount of compensation earned by executivesas well as by professional athletes and famous actors/actresses and musiciansoften spark emotionally-charged debate. Do you believe the $1 million plus retention bonuses received by 73 employees of AIG’s Financial Products was excessive? Why or why not? Answer: For most people a $1 million (or more) bonus is a dream, a fantasy, something that will never, ever be realized! Yet such extraordinary compensation does occur, and many times the individuals receiving it are high profile individuals. These cases invoke a lot of discussion, not to mention admiration, aspiration, envy, jealousy, anger, disgust, and a whole host of other emotions. Thus, this question has the potential for generating some rather interesting, and perhaps heated, debate among students. In discussing this question, students might draw on the ideas embedded in the suggested answers to the preceding two questions. In particular, focus should be on what contributions these highly compensated individuals make to their organizations and to society, and whether those contributions merit extraordinary compensation. The students should consider the contributions/salary equation for highly paid professional athletes or actor/actresses or musicians, for example, in relation to say, elementary school teachers would are charged with the intellectual development of youngsters but who are paid much more modestly. Of course, students will think of many other comparative examples to discuss, but the crucial element of the discussion should focus on the value of the contribution made by the work being done relative to the amount of compensation being earned. It is in this type of analysis that the question of whether or not compensation is excessive can be explored more rationally. Do you think that the various decisions made by Kenneth Feinberg with respect to executive compensation at AIG were justified? Explain the reasoning behind your answer. Answer: The case describes five decisions made by Kenneth Feinberg. First, he rejected much of the proposed pay package that AIG put forth for “a group of highly paid employees as being inconsistent with the ‘public interest’.” Second, he decided that the base salary for these employees should not exceed $500,000 annually. Third, he did not rule out bonuses for financial-products employees which were scheduled to be paid in 2010. Fourth, he allowed AIG to “compensate executives with ‘stock units’ tied to the value of four of its insurance units, which would be payable in three equal annual installments, starting two years after they were granted. Fifth, he decided that five high-paid officials at the financial-products unit should get only the cash salaries that were in effect at the end of 2008 rather than ‘significant increases in cash base salary.’ Because Feinberg represented the federal government and in turn the American taxpayers, these decisions should be evaluated primarily from the perspective of what best serves the public interest. All of his decision could be argued to put the public interest foremost in making decisions. However, Feinberg did not neglect the interests of AIG and it executives. He kept their interests in mind by not ruling out bonuses scheduled for 2010. He also promoted AIG’s interests in becoming a sustainable business by linking executive stock bonuses to their continuing employment with the company. Students will likely have varying viewpoints of Feinberg’s decisions. Such diversity of opinion should be encouraged, but the reasons behind those differences should be explored very rigorously. Kenneth Feinberg’s decisions regarding executive compensation at AIG were largely justified as they aimed to balance public outrage with fairness and incentivize performance. Given AIG’s role in the financial crisis and the need to restore public trust, Feinberg's approach sought to reduce excessive pay while retaining key talent necessary for the company's recovery. His measures included salary caps and bonus restrictions, reflecting a compromise between regulatory demands and operational needs. However, some argue these decisions were too restrictive and may have hindered recruitment and retention of top talent. SOURCE: This case solution was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business, Valparaiso University. Solution Manual for Organizational Behavior: Science, The Real World, and You Debra L. Nelson, James Campbell Quick 9781111825867