CHAPTER 7

Motivating employees
Learning Outcomes
ü Define motivation and explain the three key elements of

motivation.
ü Describe early theories of motivation.

ü Discuss contemporary theories of motivation.

ü Discuss current issues in motivation.

7.1 What Is Motivation?
Motivation
v Is the result of an interaction between the person
and a situation; it is not a personal trait.
v Is the process by which a person’s efforts are
energized, directed, and sustained towards
attaining a goal.
ü Energy: a measure of intensity or drive.
ü Direction: toward organizational goals
ü Persistence: exerting effort to achieve goals.
v Motivation works best when individual needs are
compatible with organizational goals.
7.1 What Is Motivation?
Reward
7.2 Early Theories of Motivation

ü Maslow’s Hierarchy of Needs

ü McGregor’s Theories X and Y

ü Herzberg’s Two-Factor Theory

ü McClelland’s Three Needs Theory

7.2 Early Theories of Motivation
7.2.1 Maslow’s Hierarchy of Needs Theory
v Needs were categorized as five levels of lower- to
higher-order needs.
ü Individuals must satisfy lower-order needs before
they can satisfy higher order needs.
ü Satisfied needs will no longer motivate.
ü Motivating a person depends on knowing at what
level that person is on the hierarchy.
v Hierarchy of needs
ü Lower-order (external): physiological, safety
ü Higher-order (internal): social, esteem, self-
actualization
Exhibit 7–1 Maslow’s Hierarchy of Needs
7.2 Early Theories of Motivation
7.2.2 McGregor’s Theory X and Theory Y
v Theory X
ü Assumes that workers have little ambition, dislike
work, avoid responsibility, and require close
supervision.
v Theory Y
ü Assumes that workers can exercise self-direction,
desire responsibility, and like to work.
v Assumption:
ü Motivation is maximized by participative decision
making, interesting jobs, and good group relations.
7.2 Early Theories of Motivation
7.2.3 Herzberg’s Motivation-Hygiene Theory
v Job satisfaction and job dissatisfaction are created by
different factors.
ü Hygiene factors: extrinsic (environmental) factors
that create job dissatisfaction.
ü Motivators: intrinsic (psychological) factors that
create job satisfaction.
v Attempted to explain why job satisfaction does not
result in increased performance.
ü The opposite of satisfaction is not dissatisfaction,
but rather no satisfaction.
Exhibit 7–2 Herzberg’s Motivation-Hygiene Theory
job content job context
Exhibit 7–3 Contrasting Views of Satisfaction-Dissatisfaction
Motivation and Needs

Three-Needs Theory (McClelland)

There are three major acquired needs that are major
motives in work.
v Need for achievement (nAch)
ü The drive to excel and succeed
v Need for power (nPow)
ü The need to influence the behavior of others
v Need of affiliation (nAff)
ü The desire for interpersonal relationships
Exhibit 7–4 Examples of Pictures Used for Assessing
Levels of nAch, nAff, and nPow
7.3 Contemporary Theories of Motivation
ü Goal-Setting Theory
ü Equity Theory
ü Expectancy Theory
ü Reinforcement Theory
ü Designing Motivating Jobs
7.3.1 Motivation and Goals
v Goal-Setting Theory
ü Proposes that setting goals that are accepted, specific,
and challenging yet achievable will result in higher
performance than having no or easy goals.
ü Is culture bound to the U.S. and Canada.
v Benefits of Participation in Goal-Setting
ü Increases the acceptance of goals.
ü Fosters commitment to difficult, public goals.
ü Provides for self-feedback (internal locus of control)
that guides behavior and motivates performance (self-
efficacy).
Exhibit 7–5 Goal-Setting Theory
7.3.2 Motivation and Behavior

Reinforcement Theory
v Assumes that a desired behavior is a function of its
consequences, is externally caused, and if
reinforced, is likely to be repeated.
ü Positive reinforcement is preferred for its long-
term effects on performance.
ü Ignoring undesired behavior is better than
punishment which may create additional
dysfunctional behaviors.
7.3.3 Designing Motivating Jobs
Job Design
v The way into which tasks can be combined to form
complete jobs.
v Factors influencing job design:
ü Changing organizational environment/structure
ü The organization’s technology
ü Employees’ skill, abilities, and preferences
v Job enlargement
ü Increasing the job’s scope (number and frequency
of tasks)
v Job enrichment
ü Increasing responsibility and autonomy (depth) in
a job.
Designing Motivating Jobs

Job Characteristics Model (JCM)

v A conceptual framework for designing motivating jobs
that create meaningful work experiences that satisfy
employees’ growth needs.
v Five primary job characteristics:
ü Skill variety: how many skills and talents are needed?
ü Task identity: does the job produce a complete work?
ü Task significance: how important is the job?
ü Autonomy: how much independence does the
jobholder have?
ü Feedback: do workers know how well they are doing?
 Exhibit 7–6 Job Characteristics Model

Source: J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work
(Glenview, IL: Scott, Foresman, 1977). With permission of the authors.
 Exhibit 7–7 Guidelines for Job Redesign

Source: J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work
(Glenview, IL: Scott, Foresman, 1977). With permission of the authors.
7.3.3 Designing Motivating Jobs

Suggestions for Using the JCM

ü Combine tasks (job enlargement) to create more
meaningful work.
ü Create natural work units to make employees’ work
important and whole.
ü Establish external and internal client relationships to
provide feedback.
ü Expand jobs vertically (job enrichment) by giving
employees more autonomy.
ü Open feedback channels to let employees know how
well they are doing.
7.3.4 Equity Theory

v Proposes that employees perceive what they get from a

job situation (outcomes) in relation to what they put in
(inputs) and then compare their inputs-outcomes ratio
with the inputs-outcomes ratios of relevant others.
ü If the ratios are perceived as equal then a state of
equity (fairness) exists.
ü If the ratios are perceived as unequal, inequity exists
and the person feels under- or over-rewarded.
ü When inequities occur, employees will attempt to
do something to rebalance the ratios (seek justice).
7.3.4 Equity Theory

v Employee responses to perceived inequities:

ü Distort own or others’ ratios.
ü Induce others to change their own inputs or outcomes.
ü Change own inputs (increase or decrease efforts) or
outcomes (seek greater rewards).
ü Choose a different comparison (referent) other (person,
systems, or self).
ü Quit their job.
v Employees are concerned with both the absolute and
relative nature of organizational rewards.
Exhibit 7–8 Equity Theory
7.3.4 Equity Theory

v Distributive justice
The perceived fairness of the amount and allocation of rewards
among individuals (i.e., who received what).
ü Influences an employee’s satisfaction.
v Procedural justice
The perceived fairness of the process use to determine the
distribution of rewards (i.e., how who received what).
ü Affects an employee’s organizational commitment.
7.3.5 Expectancy Theory

v States that an individual tends to act in a certain way based

on the expectation that the act will be followed by a given
outcome and on the attractiveness of that outcome to the
individual.
v Key to the theory is understanding and managing employee
goals and the linkages among and between effort,
performance and rewards.
ü Effort: employee abilities and training/development
ü Performance: valid appraisal systems
ü Rewards (goals): understanding employee needs
Exhibit 7–9 Simplified Expectancy Model
7.3.5 Expectancy Theory
v Expectancy Relationships
Ø Expectancy (effort-performance linkage)
ü The perceived probability that an individual’s
effort will result in a certain level of performance.
Ø Instrumentality
ü The perception that a particular level of
performance will result in the attaining a desired
outcome (reward).
Ø Valence
ü The attractiveness/importance of the performance
reward (outcome) to the individual.
Exhibit 7–10 Integrating Contemporary Theories of Motivation
7.4 Current Issues in Motivation
Cross-Cultural Challenges
v Motivational programs are most applicable in cultures
where individualism and achievement are cultural
characteristics (Hofstede’s model)
ü Uncertainty avoidance of some cultures inverts Maslow’s
needs hierarchy.
ü The need for achievement (nAch) is lacking in other cultures.
ü Collectivist cultures view rewards as “entitlements” to be
distributed based on individual needs, not individual
performance.
v Cross-Cultural Consistencies
ü Interesting work is widely desired, as is growth,
achievement, and responsibility.
Motivating Unique Groups of Workers
v Motivating Diverse Workforce
Ø Motivating a diverse workforce through flexibility:

ü Men desire more autonomy than do women.

ü Women desire learning opportunities, flexible

work schedules, and good interpersonal
relations.
Motivating Unique Groups of Workers
v Motivating Diverse Workforce
Ø Compressed workweek
ü Longer daily hours, but fewer days
Ø Flexible work hours (flextime)
ü Specific weekly hours with varying arrival, departure,
lunch and break times around certain core hours
during which all employees must be present.
Ø Job Sharing
ü Two or more people split a full-time job.
Ø Telecommuting
ü Employees work from home using computer links.
Motivating Unique Groups of Workers
v Motivating Professionals
Ø Characteristics of professionals
ü Strong and long-term commitment to their field of
expertise.
ü Loyalty is to their profession, not to the employer.
ü Have the need to regularly update their knowledge.
ü Don’t define their workweek as 8:00 am to 5:00 pm.
Ø Motivators for professionals
ü Job challenge
ü Organizational support of their work
Motivating Unique Groups of Workers
v Motivating Contingent Workers
ü Opportunity to become a permanent employee
ü Opportunity for training
ü Equity in compensation and benefits

v Motivating Low-Skilled, Minimum-Wage Employees

ü Employee recognition programs
ü Provision of sincere praise
Current Issues in Motivation
Designing Appropriate Rewards Programs
v Pay-for-performance
Ø Variable compensation plans that reward employees on the
basis of their performance: Piece rates, wage incentives,
profit-sharing, and lump-sum bonuses
v Open-book management
Ø Involving employees in workplace decision by opening up the
financial statements of the employer.
v Employee recognition programs
Ø Giving personal attention and expressing interest, approval,
and appreciation for a job well done.
Designing Appropriate Rewards Programs
v Stock option programs
Ø Using financial instruments (in lieu of monetary
compensation) that give employees the right to
purchase shares of company stock at a set
(option) price.
Ø Options have value if the stock price rises
above the option price; they become worthless
if the stock price falls below the option price.