Motivation and Performance

Management

Focus on motivation before exam

Goals
Many different ways to motivate
employees.
People have preferences for different
types of motivation.
Link Motivation to leadership style
Link Motivation to organizational culture.

Performance
Performance = motivation X ability X situational
factors (leadership support, resources, peer
support, etc).
Attributions.
Ability is relatively fixed. Ability linked to wages.
Supervisors can work largely on motivation or
situational factors. In this class focus on
leadership support and peer support (teams).
Other classes resource (ex. MIS).

Focus on Motivation for now.

Motivation is important in
management
Basic job motivation. Most firms have
average workers. Exceptional firms
motivate average workers. (note some
firms have high pay and select talented
employees).
Change efforts
Supervision is easier if people are trying.

Think of a time when you were

highly motivated
Describe the circumstances.

8-18

Intrinsic vs. Extrinsic Motivation

Intrinsic
Motivation

Extrinsic
Motivation

being driven by
positive feelings
associated with
doing well on a
task or job

McGraw-Hill

motivation
caused by the
desire to attain
specific
outcomes

2004 The McGraw-Hill Companies, Inc. All rights reserved.

8-19
Figure 8-6

A Model of Intrinsic Motivation

Opportunity
Rewards

From
Task
Activities

From
Task
Purpose

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Accomplishment
Rewards

Sense of
Choice

Sense of
Competence

Sense of
Meaningfulness

Sense of
Progress

2004 The McGraw-Hill Companies, Inc. All rights reserved.

Models of intrinsic motivation

Video
How do they create meaning, choice,
competence, progress?

8-15
Figure 8-5

The Job Characteristics Model

Core
job
characteristics

Critical
psychological
state

Skill variety
Task identity
Task significance

Experienced

meaningfulness
of work
Experienced

Autonomy

responsibility
for outcomes of
the work

Feedback from
job

Knowledge of the
actual results of
the work activities

McGraw-Hill

1.
2.
3.

Moderators
Knowledge and skill
Growth need
strength
Context satisfaction

Outcomes

High intrinsic
work
motivation
High growth
satisfaction
High general
job satisfaction

High work
effectiveness

Advantages of intrinsic Motivation

Low cost
Persistence is high
Unleash employees for change.
Builds relationships internally and
externally

Disadvantages
Control freaks nightmare
Strategic change is difficult.

Intrinsic Motivation
Often ignored in todays work
environment.
Its what many of the best firms do! Very
few average or below average firms do
not.
Not leadership per se but more
organizational culture.
Leadership style needs to be supportive to
create the culture.

Extrinsic Motivation
Many different approaches.
Debate highlighted these issues.

First, What can be used as rewards

Punishments.

Equity approaches
Discussed earlier.

9-5
Figure 9-1

Negative and Positive Inequity

A. An Equitable
Situation
Other

Self

$2
1
hour
McGraw-Hill

= $2 per hour

$4

= $2 per hour

2
hours
2004 The McGraw-Hill Companies, Inc. All rights reserved.

Factors Considered When

Making
Equity Comparisons
Inputs

Outcomes

Time

Pay/bonuses

Education/training

Fringe benefits

Experience

Challenging
assignments

Past Performance Ability and Skill

Time off with

pay/Job security
Recognition

Effort
McGraw-Hill

9-2
Table 9-1

Factors Considered When

Making
Equity Comparisons

9-3

Table 9-1 cont.

Inputs

Creativity

Seniority

Loyalty to organization

Age

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Outcomes

Career
advancement/promotio
ns
Status symbols

Pleasant/safe
working
environment
Opportunity for
personal
growth/development

9-9

Since perceptual many ways to

manage

Table 9-2

Methods

Examples

1)

Person can increase his or

her inputs

Work harder; attend

school or a
specialized program

2)

Person can attempt to

increase his
or her inputs

Dont work as
hard; take longer
breaks

3)

Person can attempt to

increase his or her
outcomes
Person can decrease his or
her outcomes

Ask for a raise; ask

for a new title;seek
outside intervention

4)

Ask for less pay

Management
Perceived Justice is important to
employee.
Some are more equity sensitive than
others.
Depends.
Some questions. Debate if pay should be
made public. What would equity theory
suggest?

 Susan is a single parent. She needs to come in

late to drop her kids at school. How do you
manage this? How could equity theory guide
your choices?
Can you be best friends or have intimate
relations with your one subordinate?
Here is a tough one. Which leadership style is
most equity sensitive? Least equity sensitive?

Expectancy theory is closely linked

to reward theory.
Assumes People will do what is most
rewarding for them.
So as students, choice to work and earn
more money or study.
Work for a course where all get As or
course where full range distribution.
Work in a course where can get an A or
work in a course where lucky to get B but
unlikely to fail.

Employees make the same

choices.
What gets you ahead on your job. Playing
golf with your boss or doing a good job.
Your job is MIS systems. You are the nerd
of all nerds. Love programming and hate
people. Job requires meeting clients
needs. Spend more time programming or
talking to clients?

 Effort

Performance

Outcomes

9-14

Vrooms Expectancy Theory

Expectancy belief that effort
leads to a specific level of
performance

Instrumentality a performance
outcome perception

Valence the value of a reward or

outcome

McGraw-Hill

2004 The McGraw-Hill Companies, Inc. All rights reserved.

Factors that Influence and

Employees Expectancy
Perceptions

9-15

Self-esteem
Self-efficacy
Previous success at the task
Help received from a supervisor and
subordinates
Information necessary to complete
the task
Good materials and equipment to do
work with

Factors that influence

Instrumentalities
Written statements/policies
Historical evidence.
Past perceptions from experiences of self
and others
Role ambiguity

Valences
Individual differences.

Lets go back to Mary Martin

Using expectancy theory, what would you
do using expectancy theory.

Managerial implications
Make reward systems explicit and clear.
Make job standards explicit and clear.
Prepare people to succeed at job
standards.
Links to which leadership style.
Expectancies are supervisory based.
Instrumentalities can be supervisor or
organizational culture.

Prerequisites to Linking
Performance and Rewards

9-20

Managers should:

Develop and communicate

performance standards

Give valid and accurate

performance ratings

Determine the relative mix

of individual vs. team
contribution to performance
and reward accordingly

Use the performance ratings

to differentially allocate
rewards among employees

McGraw-Hill

2004 The McGraw-Hill Companies, Inc. All rights reserved.

video

Problems
Very general and difficult to implement in
reality.

MBO/Goal Setting
My favorite extrinsic mode of motivation.
Effective managers work with
subordinates to set specific, objective
performance standards. All jobs.
Retails sales easiest.
Police officer
Football athletic trainer.

9-22
Figure 9-3

Lockes Model of Goal Setting

Directing
ones attention

Regulating
ones effort
Goals
motivate the
individual
by...

Task
performance
Increasing
ones persistence

Encouraging the
development of goalattainment strategies
or action plans

Insights from Goal Setting

Research

9-24
Table 9-4

1) Difficult goals lead to higher performance

2) Specific, difficult goals lead to higher
performance for simple rather than
complex tasks
3) Feedback enhances the effect of specific,
difficult goals
4) Participative goals, assigned goals, and
self-set goals are equally effective
5) Goal commitment and monetary
incentives affect goal-setting outcomes
.

MBO
Starts at the top. Officers set strategic
goals. Target. 5% revenue Growth
through repeat customers -- quality and
choice at a low price.
Store manager goals
Dept manager goals
Floor attendants goals
Check out goals

Goes beyond goals

Goals are a tool to both motivate and
identify performance problems
(performance management).
Goals setting done jointly long time frame.
Monitor (indirectly) if goals are being
attained.
Provide feedback daily, weekly, monthly

 Supervisor monitors.
Gives recognition if goals on target
Problems solves if goals are not on target.
Done in supportive manner. What does
supervisor need to do to help? What does
subordinate need to do to help?
Bonuses given if goals are met.

Research supports
But not widely used.

Managerial implications

Steps to adoption are specific and clear.

Monitoring and feedback.
Leadership style.
Organizational culture.

Dark side
Game playing/Ethical lapses with outcome
measurements.
Poor goal assessment.

Motivation
Different approaches
Choice based on beliefs about employees,
leadership style and organizational
culture.
All can be proven to be effective at
achieving different things.