Motivation

Review motivation theories

- Goal theory
- Reinforcement
- Equity Theory
- Job characteristics Model
- Expectancy Theory
- Need Theory

Examine motivation principles

in real cases
Royal Treatment: SAS Ins.

Customers

CEO
Employees
Worldwide
Employees
12,602 total
employees
 Success
Strong customer loyalty
- 98% renewal rate

Sustainable success,
Very loyal employees
even in economic
turnover rate 3-5% (industry average 20%)
recession?

One of the best place to work on the planet

- Forbes list of 100 best places to work
- 60 minutes, a heaven on earth on the job
 Some Carry-overs
Keep management hands-on: do oriented rather
than management oriented
Stay private
Hire your own to drive down cost and improve quality
- No one-nighters here
- Establish long-term relationships
Provide employees with the opportunity to have a
family life
Provide a way to reduce lifes normal stresses
Create a more egalitarian culture: all employees have
the same benefits package.
What motivate you????
 Motivation Theories

Extrinsic Motivation
due to rewards that come from doing the work, such
as pay and promotion
addressed by Reinforcement and Goal Theory
Intrinsic Motivation
due to the nature of the work itself, such as its
inherent interest or challenge
addressed by Job Characteristics Theory
Prosocial Motivation
the desire to have a positive impact on other people,
groups, and organizations
The motivation puzzle

Needs Equity

Expectations
Goal theory

Reinforcements Job Design

 Positive Reinforcement

Positive reinforcement
occurs after behavior
increases likelihood of behavior in future
important behaviors--safety, quality,
service
effective reinforcements
financial reward
new assignment
other positive reinforcements
(must be contingent on desired behavior)
 Managers need to watch
what they reinforce
Behavior that gets rewarded, gets
repeated
On the folly of wishing for A and
rewarding B
business budgets; saving versus spending
honest communications versus apple
polishing
Schedules of reinforcement

Continuous reinforcement
reward every correct response
Fixed ratio reinforcement
reward every n responses
Fixed interval reinforcement
reward correct responses for n hours
Random reinforcement
Punishment in business

The hot stove rule

impersonal

immediate

consistent

with warning