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Chapter 4

Motivating Self and Others

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-1
Copyright 2007 Pearson Education Canada
Chapter Outline

Defining Motivation
Needs Theories of Motivation
Process Theories of Motivation
Responses to the Reward System
Creating a Motivating Workplace: Rewards and Job
Design
Evaluating the Use of Rewards in the Workplace

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-2
Copyright 2007 Pearson Education Canada
Theories of Motivation
1. What is motivation?
2. How do needs motivate people?
3. Are there other ways to motivate people?
4. Do equity and fairness matter?
5. How can rewards and job design motivate
employees?
6. What kinds of mistakes are made in reward
systems?

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-3
Copyright 2007 Pearson Education Canada
What Is Motivation?

Motivation
The intensity, direction, and persistence of effort
a person shows in reaching a goal:
Intensity: How hard a person tries
Direction: Where effort is channelled
Persistence: How long effort is maintained

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-4
Copyright 2007 Pearson Education Canada
Theory X and Theory Y
Theory X
Assumes that employees dislike work, will attempt to
avoid it, and must be coerced, controlled, or threatened
with punishment if they are to perform.
Theory Y
Assumes that employees like work, are creative, seek
responsibility, and can exercise self-direction and self-
control.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-5
Copyright 2007 Pearson Education Canada
Motivators
Intrinsic Motivators
A persons internal desire to do something, due
to such things as interest, challenge, and personal
satisfaction.
Extrinsic Motivators
Motivation that comes from outside the person
and includes such things as pay, bonuses, and
other tangible rewards.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-6
Copyright 2007 Pearson Education Canada
Needs Theories of Motivation

Basic idea
Individuals have needs that, when unsatisfied,
will result in motivation
Maslows Hierarchy of Needs Theory
ERG Theory
McClellands Theory of Needs
Motivation-Hygiene Theory

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-7
Copyright 2007 Pearson Education Canada
Maslows Hierarchy of Needs
Physiological
Includes hunger, thirst, shelter, sex, and other
bodily needs.
Safety
Includes security and protection from physical
and emotional harm.
Social
Includes affection, belongingness, acceptance,
and friendship.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-8
Copyright 2007 Pearson Education Canada
Maslows Hierarchy of Needs
Esteem
Includes internal esteem factors such as self-
respect, autonomy, and achievement, and
external esteem factors such as status,
recognition, and attention.
Self-actualization
The drive to become what one is capable of
becoming; includes growth, achieving ones
potential, and self-fulfillment.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-9
Copyright 2007 Pearson Education Canada
Exhibit 4-1

Self-
actualization
Esteem

Social

Safety

Physiological

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-10
Copyright 2007 Pearson Education Canada
Alderfers ERG Theory

Existence
Concerned with providing basic material
existence requirements.
Relatedness
Desire for maintaining important interpersonal
relationships.
Growth
Intrinsic desire for personal development.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-11
Copyright 2007 Pearson Education Canada
McClellands Theory of Needs

Need for achievement


The drive to excel, to achieve in relation to a set of
standards, to strive to succeed.
Need for power
The need to make others behave in a way that they would
not have behaved otherwise.
Need for affiliation
The desire for friendly and close interpersonal
relationships.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-12
Copyright 2007 Pearson Education Canada
Herzbergs Motivation-Hygiene
Theory
Hygiene factors the sources of dissatisfaction
Extrinsic factors (context of work)
Company policy and administration
Unhappy relationship with employees supervisor
Poor interpersonal relations with ones peers
Poor working conditions

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-13
Copyright 2007 Pearson Education Canada
Herzbergs Motivation-Hygiene
Theory
Motivators the sources of satisfaction
Intrinsic factors (content of work)
Achievement
Recognition
Challenging, varied, or interesting work
Responsibility
Advancement

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-14
Copyright 2007 Pearson Education Canada
Comparison of Satisfiers and Dissatisfiers

Source: Reprinted by permission


of Harvard Business Review. An
exhibit from Frederick
Herzberg, One More Time:
How Do You Motivate
Employees? Harvard Business
Review 81, no. 1 (January 2003),
p. 90. Copyright 1987 by the
President and Fellows of
Harvard College; all rights
reserved.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-15
Copyright 2007 Pearson Education Canada
Exhibit 4-2 Contrasting Views of
Satisfaction and Dissatisfaction

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-16
Copyright 2007 Pearson Education Canada
Criticisms of Motivation-Hygiene Theory

The procedure that Herzberg used is limited by its


methodology.
The reliability of Herzbergs methodology is
questioned.
Herzberg did not really produce a theory of motivation.
No overall measure of satisfaction was used.
The theory is inconsistent with previous research.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-17
Copyright 2007 Pearson Education Canada
Exhibit 4-3 Relationship of Various
Needs Theories
Maslow Alderfer Herzberg McClelland
Self-Actualization
Growth Motivators Need for Achievement
Esteem
Need for Power
Affiliation Relatedness
Hygiene
Need for Affiliation
Security Factors
Existence
Physiological

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-18
Copyright 2007 Pearson Education Canada
Summary: Hierarchy of Needs
Maslow: Argues that lower-order needs must be satisfied
before one progresses to higher-order needs.
Herzberg: Hygiene factors must be met if person is not to be
dissatisfied. They will not lead to satisfaction, however.
Motivators lead to satisfaction.
Alderfer: More than one need can be important at the same
time. If a higher-order need is not being met, the desire to
satisfy a lower-level need increases.
McClelland: People vary in the types of needs they have. Their
motivation and how well they perform in a work situation are
related to whether they have a need for achievement, affiliation,
or power.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-19
Copyright 2007 Pearson Education Canada
Summary: Impact of Theory
Maslow: Enjoys wide recognition among practising managers. Most
managers are familiar with it.
Herzberg: The popularity of giving workers greater responsibility for
planning and controlling their work can be attributed to his findings.
Shows that more than one need may operate at the same time.
Alderfer: Seen as a more valid version of the needs hierarchy. Tells us
that achievers will be motivated by jobs that offer personal
responsibility, feedback, and moderate risks.
McClelland: Tells us that high need achievers do not necessarily make
good managers, since high achievers are more interested in how they
do personally.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-20
Copyright 2007 Pearson Education Canada
Summary: Support and Criticism of
Theory
Maslow: Research does not generally validate the theory. In
particular, there is little support for the hierarchical nature of
needs. Criticized for how data were collected and interpreted.
Herzberg: Not really a theory of motivation. Assumes a link
between satisfaction and productivity that was not measured or
demonstrated.
Alderfer: Ignores situational variables.
McClelland: Mixed empirical support, but theory is consistent
with our knowledge of individual differences among people.
Good empirical support, particularly on needs achievement.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-21
Copyright 2007 Pearson Education Canada
Process Theories of Motivation

Look at the actual process of motivation


Expectancy theory
Goal-setting theory

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-22
Copyright 2007 Pearson Education Canada
Expectancy Theory

The theory that individuals act depending on whether


their effort will lead to good performance, whether
good performance will be followed by a given
outcome, and whether that outcome is attractive to
them.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-23
Copyright 2007 Pearson Education Canada
Expectancy Relationships

The theory focuses on three relationships:


Effort-Performance Relationship
The perceived probability that exerting a given amount of
effort will lead to performance
Performance-Reward Relationship
The degree to which the individual believes that performing at
a particular level will lead to a desired outcome
Rewards-Personal Goals Relationship
The degree to which organizational rewards satisfy an
individuals personal goals or needs and are attractive to the
individual

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-24
Copyright 2007 Pearson Education Canada
Exhibit 4-5 How Does Expectancy
Theory Work?
My professor offers me $1 million if I memorize the textbook by tomorrow morning.

Expectancy Instrumentality Valence

Effort Performance Link Performance Rewards Link Rewards Personal Goals Link
No matter how much effort My professor does not look There are a lot of wonderful things
I put in, probably not possible like someone who has $1 million I could do with $1 million
to memorize the text in 24 hours
E=0 I=0 V=1

Conclusion: Though I value the reward, I will not be motivated to do this task.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-25
Copyright 2007 Pearson Education Canada
Exhibit 4-6
Steps to Increasing Motivation, Using
Expectancy Theory
Improving Expectancy Improving Instrumentality Improving Valence

Improve the ability of the Increase the individuals belief that Make sure that the reward is
individual to perform performance will lead to reward meaningful to the individual
Make sure employees have skills Observe and recognize performance Ask employees what rewards they
for the task Deliver rewards as promised value
Provide training Indicate to employees how previous Give rewards that are valued
Assign reasonable tasks and goals good performance led to greater
rewards

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-26
Copyright 2007 Pearson Education Canada
Goal-Setting Theory
The theory that specific and difficult goals lead
to higher performance.
Goals tell an employee what needs to be done and how
much effort will need to be expended.
Specific goals increase performance.
Difficult goals, when accepted, result in higher performance
than do easy goals.
Feedback leads to higher performance than does nonfeedback.
Specific hard goals produce a higher level of output than
does the generalized goal of do your best.
The specificity of the goal itself acts as an internal stimulus.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-27
Copyright 2007 Pearson Education Canada
How Does Goal Setting Motivate?

Goals:
Direct attention
Regulate effort
Increase persistence
Encourage the development of strategies and
action plans

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-28
Copyright 2007 Pearson Education Canada
Goals Should Be SMART

For goals to be effective, they should be


SMART:
Specific
Measurable
Attainable
Results-oriented
Time-bound

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-29
Copyright 2007 Pearson Education Canada
Exhibit 4-7 Lockes Model of
Goal Setting
Directing attention

Goals Regulating effort


Task
motivate
performance
by . . . Increasing persistence

Encouraging the development


of strategies and action plans

Source: Adapted from E. A. Locke and G. P. Latham, A Theory of Goal Setting and Task
Performance (Englewood Cliffs, NJ: Prentice Hall, 1980). Reprinted by permission of Edwin A.
Locke.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-30
Copyright 2007 Pearson Education Canada
Contingency Factors in
Goal Setting
Self-efficacy
An individuals belief that he or she is capable of
performing a task.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-31
Copyright 2007 Pearson Education Canada
Responses to the
Reward System
Equity Theory
Fair Process and Treatment
Cognitive Evaluation Theory

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-32
Copyright 2007 Pearson Education Canada
Exhibit 4-8
Equity Theory
Ratio of Output to Input Person 1s Perception

Person 1
Inequity, underrewarded
Person 2

Person 1
Equity
Person 2

Person 1
Inequity, overrewarded
Person 2

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-33
Copyright 2007 Pearson Education Canada
Equity Theory
Main points:
Individuals compare their job inputs and
outcomes with those of others and then respond
so as to eliminate any inequities.
Equity theory recognizes that individuals are
concerned not only with the absolute amount of
rewards for their efforts, but also with the
relationship of this amount to what others
receive.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-34
Copyright 2007 Pearson Education Canada
Responses to Inequity

Change their inputs.


Change their outcomes.
Adjust perceptions of self.
Adjust perceptions of others.
Choose a different referent.
Leave the field.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-35
Copyright 2007 Pearson Education Canada
Fair Process and Treatment

Historically, equity theory focused on


Distributive justice.
However, equity should also consider
Procedural justice.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-36
Copyright 2007 Pearson Education Canada
Fair Process and Treatment

Distributive Justice
Perceived fairness of the amount and allocation of
rewards among individuals.
Procedural Justice
Perceived fairness of the process used to determine the
distribution of rewards.
Interactional Justice
The quality of the interpersonal treatment received from a
manager.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-37
Copyright 2007 Pearson Education Canada
Cognitive Evaluation Theory

The introduction of extrinsic rewards for work


effort that was previously rewarded
intrinsically will tend to decrease the overall
level of a persons motivation.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-38
Copyright 2007 Pearson Education Canada
Motivators

Intrinsic
A persons internal desire to do something, due
to such things as interest, challenge, and personal
satisfaction.
Extrinsic
Motivation that comes from outside the person,
such as pay, bonuses, and other tangible rewards.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-39
Copyright 2007 Pearson Education Canada
Four Key Rewards to Increase
Intrinsic Motivation
1.Sense of choice
2.Sense of competence
3.Sense of meaningfulness
4.Sense of progress
Managers can act in ways that will build these
intrinsic rewards for their employees.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-40
Copyright 2007 Pearson Education Canada
Exhibit 4-9 Building Blocks for
Intrinsic Rewards
Leading for Choice Leading for Competence

Delegated authority Knowledge


Trust in workers Positive feedback
Security (no punishment) for honest mistakes Skill recognition
A clear purpose Challenge
Information High, non-comparative standards

Leading for Meaningfulness Leading for Progress

A noncynical climate A collaborative climate


Clearly identified passions Milestones
An exciting vision Celebrations
Relevant task purposes Access to customers
Whole tasks Measurement of improvement

Source: Reprinted with permission of the publisher. From Intrinsic Motivation at Work: Building Energy and
Commitment. Copyright K. Thomas. Berrett-Koehler Publishers Inc., San Francisco, CA. All rights reserved.
www.bkconnection.com.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-41
Copyright 2007 Pearson Education Canada
Employee Recognition

Employee recognition programs use multiple


sources and recognize both individual and
group accomplishments.
In contrast to most other motivators,
recognizing an employees superior
performance often costs little or no money.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-42
Copyright 2007 Pearson Education Canada
Variable-Pay Programs

A portion of an employees pay is based on some


individual and/or organizational measure of
performance.
Individual-based
Piece-rate wages, bonuses
Group-based
Gainsharing
Organizational-based
Profit sharing
Employee stock ownership plans (ESOPs)

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-43
Copyright 2007 Pearson Education Canada
Variable Pay Programs: Individual-
Based Incentives
Piece-rate pay plans
Employees are paid a fixed sum for each unit of
production completed.
Bonuses
One-time rewards for defined work rather than
ongoing entitlements.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-44
Copyright 2007 Pearson Education Canada
Variable Pay Programs:
Group-Based Incentives
Gainsharing
An incentive plan where improvements in group
productivity determine the total amount of money
that is allocated.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-45
Copyright 2007 Pearson Education Canada
Variable Pay Programs:
Organizational-Based Incentives
Profit-Sharing Plans
Organization-wide programs that distribute
compensation based on some established formula
designed around a companys profitability.
Employee Stock Ownership Plans (ESOPs)
Company-established benefit plans in which
employees acquire stock as part of their benefits.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-46
Copyright 2007 Pearson Education Canada
Research Findings

Linking variable-pay programs and expectancy


theory:
Variable-pay programs seem to be consistent
with expectancy theory predictions.
Employees are motivated when there is a
perceived strong relationship between
performance and rewards.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-47
Copyright 2007 Pearson Education Canada
Motivating Beyond Productivity

Commissions beyond sales


Customer satisfaction and/or sales team outcomes, such as
meeting revenue or profit targets.
Leadership effectiveness
Employee satisfaction, or how the manager handles his or
her employees.
New goals
All employees who contribute to specific organizational
goals, such as customer satisfaction, cycle time, or quality
measures.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-48
Copyright 2007 Pearson Education Canada
Rewards for Other Types of
Performance
Knowledge workers in teams
Performance of knowledge workers and/or professional
employees who work on teams.
Competency and/or skills
Abstract knowledge or competenciesfor example,
knowledge of technology, the international business
context, customer service, or social skills.
Skill-based
Pay is based on how many skills an employee has, or how
many jobs he or she can do.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-49
Copyright 2007 Pearson Education Canada
Exhibit 4-11 Comparing Various Pay
Programs

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-50
Copyright 2007 Pearson Education Canada
Designing Motivating Jobs

Job Characteristic Model (JCM) is a model that identifies


five core job dimensions and their relationship to personal
and work outcomes.
Job Enrichment
The vertical expansion of jobs.
Employee does a complete activity.
Expands the employees freedom and independence,
increases responsibility, and provides feedback.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-51
Copyright 2007 Pearson Education Canada
JCM Core Job Dimensions

Skill variety
Task identity
Task significance
Autonomy
Feedback

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-52
Copyright 2007 Pearson Education Canada
JCM Critical Psychological States

Experienced meaningfulness
Experienced responsibility for outcomes
Knowledge of the actual results

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-53
Copyright 2007 Pearson Education Canada
Exhibit 4-12 Examples of High and
Low Job Characteristics Skill Variety
High variety The owner-operator of a garage who does electrical repair, rebuilds engines, does body work, and
interacts with customers
Low variety A body shop worker who sprays paint eight hours a day

Task Identity
High identity A cabinet maker who designs a piece of furniture, selects the wood, builds the object, and finishes
it to perfection
Low identity A worker in a furniture factory who operates a lathe solely to make table legs

Task Significance
High significance Nursing the sick in a hospital intensive care unit
Low significance Sweeping hospital floors

Autonomy
High autonomy A telephone installer who schedules his or her own work for the day, makes visits without
supervision, and decides on the most effective techniques for a particular installation
Low autonomy A telephone operator who must handle calls as they come according to a routine, highly
specified procedure

Feedback
High feedback An electronics factory worker who assembles a radio and then tests it to determine if it operates
properly
Low feedback An electronics factory worker who assembles a radio and then routes it to a quality control
inspector who tests it for proper operation and makes needed adjustments
Source: G. Johns, Organizational Behavior: Understanding and Managing Life at Work, 4th ed. Copyright 1997. Adapted by permission of Pearson Education,
Inc., Upper Saddle River, NJ.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-54
Copyright 2007 Pearson Education Canada
Exhibit 4-13 The Job
Characteristics Model
Core job Critical Personal and
dimensions psychological states work outcomes

Skill variety Experienced High internal


Task identity meaningfulness work motivation
Task significance of the work

High-quality
Experienced work performance
Autonomy responsibility
for outcomes
High satisfaction
of the work
with the work

Knowledge of the Low absenteeism


Feedback actual results of Source: J. R. Hackman, G. R.
and turnover
the work activities Oldham, Work Design (excerpted
from pages 78-80). Copyright
1980 by Addison-Wesley
Publishing Co. Reprinted by
Employee growth- permission of Addison-Wesley
Longman.
need strength

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-55
Copyright 2007 Pearson Education Canada
Beware the Signals That Are Sent By
Rewards
Often reward systems do not reflect organizational
goals:
Individuals are stuck in old patterns of rewards and
recognition.
Stick to rewarding things that can be easily measured.
Organizations dont look at the big picture.
Subunits compete with each other.
Management and shareholders focus on short-term results.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-56
Copyright 2007 Pearson Education Canada
Exhibit 4-14
Management Reward Follies
We hope for: But we reward:
Teamwork and collaboration The best team members
Innovative thinking and risk-taking Proven methods and not making mistakes
Development of people skills Technical achievements and accomplishments
Employee involvement and empowerment Tight control over operations and resources
High achievement Another years effort
Long-term growth; environmental Quarterly earnings
responsibility
Shipment on schedule, even with defects
Commitment to total quality
Reporting good news, whether its true or not;
Candor; surfacing bad news early agreeing with the manager, whether or not
(s)hes right

Source: Constructed from S. Kerr, On the Folly of Rewarding A, While Hoping for B, Academy of Management Executive 9, no. 1 (1995), pp. 7-14; and More on the Folly,
Academy of Management Executive 9, no. 1 (1995), pp. 15-16. Reprinted by permission.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-57
Copyright 2007 Pearson Education Canada
Caveat Emptor: Apply Motivation
Theories Wisely
Motivation Theories Are Culture-Bound
Canada and US rely on extrinsic rewards more
than other countries.
Japan and Germany rarely use individual
incentives.
Japan emphasizes group rewards.
China is more likely to give bonuses to everyone.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-58
Copyright 2007 Pearson Education Canada
Exhibit 4-15 Snapshots of Cultural
Differences in Motivation
Japan:Sales representatives preferred being members of a successful
team with shared goals and values, rather than financial rewards.

Russia:Cotton mill employees given either valued extrinsic rewards


(North American T-shirts with logos, childrens sweatpants, tapes of
North American music, etc.) or praise and rewards were more productive.
However, rewards did not help for those who worked on
Saturdays.

China: Bonuses often given to everyone, r egardless of individual


productivity. Many employees expect jobs for life, rather than jobs based
on performance.

Mexico: Employees prefer immediate feedback on their work. Therefore


daily rewards for exceeding quotas are preferred.

Canada and the United States:Managers rely more heavily on extrinsic


motivators.

Japan and Germany:Firms rarely give rewards based on individual


performance.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-59
Copyright 2007 Pearson Education Canada
Can We Just Eliminate Rewards?

Alfie Kohn suggests that organizations should focus


less on rewards, more on creating motivating
environments:
Abolish Incentives.
Re-evaluate Evaluation.
Create Conditions for Authentic Motivation.
Encourage Collaboration.
Enhance Content.
Provide Choice.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-60
Copyright 2007 Pearson Education Canada
Putting It All Together
What we know about motivating employees in organizations:
Recognize individual differences.
Employees have different needs.
Dont treat them all alike.
Spend the time necessary to understand whats important to each
employee.
Use goals and feedback.
Allow employees to participate in decisions that affect them.
Link rewards to performance.
Check the system for equity.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-61
Copyright 2007 Pearson Education Canada
Summary and Implications

1. What is Motivation?
Motivation is the process that accounts for an
individuals intensity, direction, and persistence
of effort toward reaching the goal.
2. How do needs motivate people?
All needs theories of motivation propose a
similar idea: individuals have needs that, when
unsatisfied, will result in motivation.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-62
Copyright 2007 Pearson Education Canada
Summary and Implications
3. Are there other ways to motivate people?
Process theories focus on the broader picture of how
someone can set about motivating another individual.
Process theories include expectancy theory and goal-
setting theory (and its application, management by
objectives).
4. Do equity and fairness matter?
Individuals look for fairness in the reward system.
Rewards should be perceived by employees as related to
the inputs they bring to the job.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-63
Copyright 2007 Pearson Education Canada
Summary and Implications
5. How can rewards and job design motivate employees?
Recognition helps employees feel that they matter.
Employers can use variable-pay programs to reward
performance. Employers can use job design to motivate
employees. Jobs that have variety, autonomy, feedback, and
similar complex task characteristics tend to be more
motivating for employees.
6. What kinds of mistakes are made in reward systems?
Often reward systems do not reward the performance that is
expected. Also, reward systems sometimes do not recognize
that rewards are culture-bound.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-64
Copyright 2007 Pearson Education Canada
OB at Work

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-65
Copyright 2007 Pearson Education Canada
For Review

1. What are the implications of Theories X and


Y for motivation practices?
2. Identify the variables in expectancy theory.
3. Describe the four ways in which goal
setting motivates.
4. Explain cognitive evaluation theory. How
applicable is it to management practice?
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-66
Copyright 2007 Pearson Education Canada
For Review
5. What are the pluses and minuses of variable-pay
programs from an employees viewpoint? From
managements viewpoint?
6. What is an ESOP? How might it positively influence
employee motivation?
7. Describe the five core dimensions in the JCM.
8. Describe three jobs that score high on the JCM.
Describe three jobs that score low.
9. What can firms do to create more motivating
environments for their employees?

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-67
Copyright 2007 Pearson Education Canada
For Critical Thinking

1. Identify three activities you really enjoy (for example,


playing tennis, reading a novel, going shopping). Next,
identify three activities you really dislike (for example,
visiting the dentist, cleaning the house, following a low-fat
diet). Using expectancy theory, analyze each of your answers
to assess why some activities stimulate your effort while
others dont.
2. Identify five different bases by which organizations can
compensate employees. Based on your knowledge and
experience, is performance the basis most used in practice?
Discuss.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-68
Copyright 2007 Pearson Education Canada
For Critical Thinking
3. Employee recognition may be motivational for the
moment, but it doesnt have any staying power. Why?
Because employees cant take recognition to Roots or
The Bay! Do you agree or disagree? Discuss.
4. Performance cant be measured, so any effort to link
pay with performance is a fantasy. Differences in
performance are often caused by the system, which
means the organization ends up rewarding the
circumstances. Its the same thing as rewarding the
weather forecaster for a pleasant day. Do you agree or
disagree with this statement? Support your position.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-69
Copyright 2007 Pearson Education Canada
For Critical Thinking

5. Your textbook argues for recognizing individual differences.


It also suggests paying attention to members of diverse
groups. Does this view contradict the principles of equity
theory? Discuss.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-70
Copyright 2007 Pearson Education Canada
Breakout Group Exercises
Form small groups to discuss the following topics:
1. One of the members of your team continually arrives late for meetings
and does not turn drafts of assignments in on time. Choose one of the
available theories and indicate how the theory explains the members
current behaviour and how the theory could be used to motivate the
group member to perform more responsibly.
2. You are unhappy with the performance of one of your instructors and
would like to encourage the instructor to present more lively classes.
Choose one of the available theories and indicate how the theory
explains the instructors current behaviour. How could you as a
student use the theory to motivate the instructor to present more lively
classes?

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-71
Copyright 2007 Pearson Education Canada
Breakout Group Exercises
3. Harvard University recently changed its grading policy to
recommend to instructors that the average course mark should be a
B. This was the result of a study showing that more than 50
percent of students were receiving an A or A- for coursework.
Harvard students are often referred to as the best and the
brightest, and they pay $27 000 (US) for their education, so they
expect high grades. Discuss the impact of this change in policy on
the motivation of Harvard students to study harder.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-72
Copyright 2007 Pearson Education Canada
Exhibit 4-16 2005 Compensation of
Canadas Most Overpaid CEOs
CEO(s) Was Paid (3-Yr Should Have Been Amount Overpaid
Avg.) Paid
1. Ian Telfer/Robert McEwen $32 823 000 $1 313 000 $31 510 000
Goldcorp
Vancouver, BC

2. E. Melnyk $23 392 000 $1 404 000 $21 988 000


Biovail
Mississauga, Ontario

3. Richard Smith/David Stein $9 647 000 $675 000 $8 972 000


CoolBrands
Markham, Ontario

4. Jeffrey Orr/Robert Gratton $76 139 000 $9 898 000 $66 241 000
Power Financial Corporation
Montreal, Quebec

5. Gerald Schwartz $26 163 000 $4 709 000 $21 454 000
Onex
Toronto, Ontario
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-73
Copyright 2007 Pearson Education Canada
Supplemental Material

Slides for activities I do in my own


classroom

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-74
Copyright 2007 Pearson Education Canada
Exercise on Motivation Theories

Jesse has been underperforming at work, coming in


late, and causing some problems with the other
workers. Previously, Jesse had been one of your star
employees. Using the theory assigned to your group,
explain what steps you might take to motivate Jesse to
perform better.
Describe the plan.
Indicate how the plan relates to the theory.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-75
Copyright 2007 Pearson Education Canada
Theories to Apply

Herzberg Motivation-Hygiene (Two-Factor)


Theory
Expectancy
Goal-Setting Theory
Equity
Cognitive Evaluation Theory

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-76
Copyright 2007 Pearson Education Canada