Fundamentals of Management

Global Edition

Chapter 11
Motivating and Rewarding
Employees

Roksana Binte Rezwan

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Learning Objectives
11.1 Define and explain motivation.
11.2 Compare and contrast early theories of motivation.
11.3 Compare and contrast contemporary theories of
motivation.
11.4 Discuss current issues in motivating employees.

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Learning Objective 11.1
• Define and explain motivation.

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 What Is Motivation?
• Energy
– Measure of intensity or drive
• Direction
– Effort that is directed towards and consistent with,
organizational goals
• Persistence
– In putting forth effort to achieve those goals.

78 percent of managers say they do a fair job of motivating their people.2

21 percent of employees feel they’re managed in a motivating way.3

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Learning Objective 11.2
• Compare and contrast early theories of motivation.

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Early Theories of Motivation
• Maslow’s Hierarchy of Needs
• McGregor’s Theory X and Theory Y
• Herzberg’s Two-Factor Theory
• McClelland’s Three-Needs Theory

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Maslow’s Hierarchy of Needs (1/2)
• Abraham Maslow—a psychologist—proposed that within
every person is a hierarchy of five needs.
• Each level must be substantially satisfied before the next
need becomes dominant; an individual moves up the
hierarchy from one level to the next.
• Lower-order needs are satisfied predominantly externally,
and higher-order needs are satisfied internally.
• Once a need is substantially satisfied, it no longer
motivates.
• No empirical support provided for theory; other studies
could not validate it
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Maslow’s Hierarchy of Needs (2/2)
Exhibit 11-1 Maslow’s Hierarchy of Needs

Source: Maslow, Abraham H., Frager, Robert D., Fadiman, James, Motivation and Personality, 3rd ed., ©1987. Reprinted and electronically reproduced by permission of Pearson
Education, Inc., New York, NY.

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 Test
• 1) Maslow's theory is a hierarchy because ________.

• A) needs are satisfied sequentially

• B) all needs are equal
• C) needs are never truly satisfied
• D) all needs are important

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 Test
• 2) An individual who wants to buy a home in a
neighborhood with a low crime rate is satisfying
which need?

• A) self-actualization
• B) safety
• C) esteem
• D) physiological

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 Test
• 3) Maslow believes that higher-order needs ________.

• A) are satisfied first

• B) are satisfied most often
• C) are satisfied internally
• D) are satisfied externally

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McGregor’s Theory X and Theory Y (1/2)
Theory X Theory Y
• Little ambition • Enjoy work
• Dislike work • Seek and accept
responsibility
• Avoid responsibility
• Exercise self-direction
• Must be closely
controlled

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McGregor’s Theory X and Theory Y(2/2)
Based on two assumptions about human nature.
Theory X: a negative view of people that assumes
workers have little ambition, dislike work, want to avoid
responsibility, and need to be closely controlled to work
effectively.
Theory Y: a positive view that assumes employees enjoy
work, seek out and accept responsibility, and exercise self-
direction.
To maximize employee motivation, use Theory Y
practices—allow employees to participate in decisions,
create responsible and challenging jobs, and encourage
good group relations.

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 Test
• 4) Workers with a Theory X point of view would be
most likely to respond to ________.

• A) kindness
• B) a hands-off approach
• C) freedom to modify their job
• D) fear of losing their job

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 Test
• 5) Workers with a Theory Y point of view would be
likely to ________.

• A) avoid responsibility for their actions

• B) just want to collect a paycheck
• C) avoid work unless rewards were high
• D) love their job more than the money they make

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Satisfaction vs. Dissatisfaction (1/2)
Exhibit 11-3 Contrasting Views of Satisfaction and Dissatisfaction

Source: Robbins, Stephen P., Coulter, Mary, Management, 13th Ed.,

© 2016, p. 465. Reprinted and electronically reproduced by
permission of Pearson Education, Inc., New York, NY.
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Herzberg’s Two-Factor Theory (1/2)
Frederick Herzberg’s two-factor theory (also called
motivation-hygiene theory)
• intrinsic factors are related to job satisfaction, while
• extrinsic factors are associated with job
dissatisfaction.
Popular theory from the 1960s to the early 1980s.
Criticized for being too simplistic.
Influenced today’s approach to job design

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Satisfaction vs. Dissatisfaction (2/2)
• Herzberg concluded that the traditional view—the
opposite of satisfaction is dissatisfaction—was
wrong.
• He believed that the factors that led to job
satisfaction were separate and distinct from those
that led to job dissatisfaction.
• When people felt good about their work, they
tended to cite intrinsic factors .
• When they were dissatisfied, they tended to cite
extrinsic factors arising from the job context.

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Herzberg’s Two-Factor Theory (2/2)
Exhibit 11-2 Herzberg’s Two-Factor Theory

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 Test
• 6) According to Herzberg's motivation-hygiene theory,
________ are associated with job satisfaction.

• A) hygiene factors
• B) motivators
• C) rewards
• D) punishments

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 Test
• 7) According to Herzberg, hygiene factors ________.

• A) help people avoid infections

• B) control dissatisfaction but not satisfaction
• C) control motivation but not satisfaction
• D) control motivation and satisfaction

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McClelland’s Three-Needs Theory
(1/3)
Three acquired needs are work motives:
1. Need for achievement
– The drive to succeed and excel in relation to a set of
standards
2. Need for power
– The need to make others behave in a way that they
would not have behaved otherwise
3. Need for affiliation
– The desire for friendly and close interpersonal
relationships

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McClelland’s Three-Needs Theory
(2/3)
• People with a high nAch are striving for personal
achievement rather than for the trappings and rewards of
success.
They prefer
– ❶ jobs that offer personal responsibility for finding
solutions to problems,
– ❷ receiving rapid and unambiguous feedback on their
performance in order to tell whether they’re improving,
and
– ❸ moderately challenging goals.
High achievers avoid what they perceive to be very easy or
very difficult tasks.
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McClelland’s Three-Needs Theory
(3/3)
• Best managers
1. Need for achievement
– A high nAch doesn’t necessarily lead to being a good
manager, especially in large organizations. Why?
Because high achievers focus on their own
accomplishments, while good managers emphasize
helping others accomplish their goals.
2. Need for power
– High
3. Need for affiliation
– Low
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 Test
• 8) Which three needs are recognized in McClelland's
three-needs theory?

• A) security, self-interest, affiliation

• B) achievement, power, security
• C) power, comfort, stimulation
• D) achievement, power, affiliation

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Learning Objective 11.3
• Compare and contrast contemporary theories of
motivation.

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Goal-Setting Theory (1/2)
• Working toward a goal is a major source of job motivation,
specific goals increase performance and that difficult goals,
when accepted, result in higher performance than do easy
goals.
• Will employees try harder if they have the opportunity to
participate in the setting of goals?
• Not always
• people will do better if they get feedback on how well they’re
progressing toward their goals because feedback helps
identify discrepancies between what they’ve done and what
they want to do.
• Self-generated feedback has been shown to be a
more powerful motivator than feedback coming from
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Goal-Setting Theory (2/2)
Exhibit 11-4 Goal-Setting Theory

Goals CAN be powerful motivators!

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Influences on Goal-Performance
Relationship
• Goal commitment
– Goals are made public, when the individual has an
internal locus of control, and when the goals are
self-set rather than assigned
• Adequate self-efficacy
– Individual’s belief that he or she is capable of
performing a task
• National culture
– assumes that subordinates will be reasonably
independent (not a high score on power distance),
that people will seek challenging goals (low in
uncertainty avoidance)
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 Test
• 9) Which is the best summary of goal-setting theory? 9

• A) Easy goals make for happier employees.

• B) Always make your goals very difficult to reach.
• C) Goals make no difference in performance.
• D) Specific goals increase performance.

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 Test
• 10) In goal-setting theory, which one of the following
is the best kind of feedback?

• A) feedback from a superior

• B) group feedback
• C) feedback from a peer
• D) self-generated feedback

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How Does Job Design Influence Motivation?
Exhibit 11-5 Job Characteristics Model

Source: Reprinted by permission from Judith D. Hackman (w/o) J. Richard Hackman.

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Job Characteristics Model (1/2)
According to Hackman and Oldham, any job can be
described in terms of the following
five core job dimensions:
1. Skill variety. The degree to which the job requires a
variety of activities so the worker can use a number of
different skills and talents
2. Task identity. The degree to which the job requires
completion of a whole and identifi-able piece of work
3. Task significance. The degree to which the job affects
the lives or work of other people

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Job Characteristics Model (2/2)
4. Autonomy. The degree to which the job provides
freedom, independence, and discretion to the individual in
scheduling the work and in determining the procedures to be
used in carrying it out.
5. Feedback. The degree to which carrying out the work
activities required by the job results in the individual’s
obtaining direct and clear information about the effectiveness
of his or her performance.

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Job Design and Motivation
Internal rewards are obtained when an employee learns that
he or she personally has performed well on a task he or she
cares about.

Yes—you can design jobs that motivate!

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Job Redesign Guidelines
Exhibit 11-6 Guidelines for Job Redesign

Source: Reprinted by permission from Judith D. Hackman

(w/o) J. Richard Hackman.
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 Test
• 11) The job characteristics model (JCM) maintains that
________ is critical to motivating workers.

• A) equal treatment for all

• B) how jobs are designed
• C) how workers are treated
• D) setting goals

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 Test
• 12) The JCM contends that ________ are required in
meaningful work.

• A) skill variety, autonomy, and feedback

• B) task significance, autonomy, and feedback
• C) task identity, autonomy, and feedback
• D) skill variety, task identity, and task significance

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Equity Theory (1/3)
developed by J. Stacey Adams, proposes that employees
compare what they get from a job (outcomes) in relation to
what they put into it (inputs) and then compare their input-
outcome ratio with the input-outcome ratios of relevant
others (referent)
• The “persons” category
• The “system” category
• The “self” category
• Equity:
• the concept of fairness and comparable treatment
when compared with others who behave in similar
ways.
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Equity Theory (2/3)
Exhibit 11-7 Equity Theory Relationships

<

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Equity Theory (3/3)
• distributive justice: which is the perceived fairness of the
amount and allocation of rewards among individuals
• procedural justice, which is the perceived fairness of the
process used to determine the distribution of rewards.
• Should consider openly sharing information on how
allocation decisions are made, follow consistent and
unbiased procedures, and engage in similar practices to
increase the perception of procedural justice.

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 Test
• 13) Inequity exists when one's own outcomes-to-input
ratio ________ that of the referent.

• A) is less than but not greater than

• B) is greater than or less than
• C) is greater than but not less than
• D) is equal to

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 Test
• 14) In equity theory, an under-rewarded individual is
likely to ________.
• A) have high motivation to show his or her value to
the organization
• B) have high motivation due to high self-esteem
• C) lack motivation because he or she does not receive
enough reward for what he or she does
• D) have just the right motivation to get the job done

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Expectancy Theory (1/2)
Victor Vroom’s expectancy theory 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.

Exhibit 11-8 Expectancy Model

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Expectancy Theory (2/2)
Expectancy or effort-performance linkage: probability
perceived by the individual that exerting a given amount of
effort will lead to a certain level of performance.
Instrumentality or performance-reward linkage is the
degree to which the individual believes that performing at a
particular level is instrumental in attaining the desired
outcome.
Valence or attractiveness of reward is the importance that
the individual places on the potential outcome or reward that
can be achieved on the job. Valence considers both the
goals and needs of the individual.

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 Test
• 15) In expectancy theory, a person may have the
ability to reach a certain goal but lack motivation
because ________.

• A) the person has no strong desire for the reward

• B) the person's desire to reach the goal is too strong
• C) the goal is too easy
• D) the goal is too hard

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 Test
• 16) The key to expectancy theory is that an
individual's goals ________.

• A) match the goals of fellow workers and superiors

• B) match the rewards provided by the organization
• C) are not too high and not too low
• D) are not too high

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Integrating Contemporary Theories of Motivation

Expectancy theory
Traditional need theories
Achievement-need
Reinforcement theory
equity theory
JCM

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Learning Objective 11.4
• Discuss current issues in motivating employees.

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Current Issues

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Uncertain Economy and Employees
Motivation
• be creative in keeping their employees’ efforts energized,
directed, and sustained toward achieving goals.
• ways to motivate employees that don’t involve money or
that are relatively inexpensive
• holding meetings with employees to keep the lines of
communication open and to get their input on issues
• establishing a common goal, such as maintaining excellent
customer service, to keep everyone focused
• creating a community
• giving employees opportunities to continue to learn and
grow
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Country Culture and Motivation
Managers can’t assume that motivational programs that
work in one geographic location are going to work in
others.
Maslow's Need Hierarchy
– Aligns with American culture
– Countries with high avoidance culture may have
security need at the top
– Countries with high nurturing characteristic may
have social need at the top

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Country Culture and Motivation
• Goal-setting and expectancy theories
– emphasize goal accomplishment as well as rational
and individual thought
• Achievement Need
– Presupposes two cultural characteristics
▪ Willing to accept moderate degrees of risk
▪ Concern with performance
• Equity theory
– Collectivist country specially former socialist countries
▪ Rewards should reflect both need and performance

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Cross-Cultural Differences

The desire for interesting work seems to be global.

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Unique Groups of Workers
Motivating:
• Diverse employees
– Flexibility
▪ men place more importance on having autonomy
▪ flexible work hours, and good interpersonal relations
are more important to women
▪ opportunity to be independent and to be exposed to
different experiences is important to Gen Y
employees
▪ older workers may be more interested in highly
structured work opportunities
– Do flexible work arrangements motivate employees?
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Unique Groups of Workers
Motivating:
• Professionals
– have a strong and long-term commitment to their field
of expertise.
– Money and promotions typically are low on their priority
list
– job challenge tends to be ranked high
– The work itself
– Support

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Unique Groups of Workers
Motivating:
• Contingent workers
– don’t have the security or stability that permanent
employees have,
– opportunity to become a permanent employee
– opportunity for training
– Separating temporary workers from permanent workers

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Designing Appropriate Rewards
Programs
• Open-book management
– involve their employees in workplace decisions by
opening up the financial statements (the “books”) so
that employees will be motivated to make better
decisions about their work and be better able to
understand the implications of what they do, how they
do it, and the ultimate impact on the bottom line
• Employee recognition programs
– providing personal attention and expressions of
interest, approval, and appreciation for a job well
done.

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Pay-for-Performance
• Variable compensation plans that pay employees on the
basis of some performance measure

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Low-Cost Rewards Program
• Clarify role in organization
• Keep communication open
• Show individual company cares

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Next Class
• Next class is on Nov 18th
• Nov 15th class is cancelled
• Make-Up class on Nov 23 via ZOOM
– Information in the following slide
– In-class Activity
– Must submit your work by Nov-26 (Let
submissions will lose points)

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Make-Up Class Information
– Topic: Principles of Management -Make-up
Class
– Time: Nov 23, 2024 01:15 PM Osaka, Sapporo,
Tokyo
– Join Zoom Meeting
– https://us06web.zoom.us/j/87386406978?pwd
=sQjclJGsW2X0IaXDpSS5a5pG9nweqb.1

– Meeting ID: 873 8640 6978

– Passcode: 246160
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 Discussion Question
• Most of us have to work for living, and a job is a central part of
our lives. So why do managers have to worry so much about
employee motivation issues?
• What role would money play in 1) the hierarchy of needs theory
b) two-factor theory, c) equity theory, d) expectancy theory, and e)
motivating employees with high nAch?
• What challenges do managers face in motivating today’s
workforce?
• Contrast lower-order and higher order needs in Maslow’s needs
theory.

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Copyright

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