Home1. What are the three components of performance? Motivation, ability and opportunity What are the three components of motivation? 1. Directions of Effort a. What are you going to do right now? 2. Intensity of Effort a. How hard are you going to work on it? 3. Persistence of Effort a. How long are you going to work on it? What is the role of engagement? Engagement- Term commonly used in the contemporary workplace to summarize motivation levels. A contemporary synonym, more or less for high levels of intensity and persistence in work effort 2. What is the difference between extrinsic and intrinsic motivators? Extrinsic motivators (Outwardly)- motivation that is controlled by some contingency that depends on task performance Intrinsic motivators (Inwardly)- motivation that is felt when task performance serves as its own reward - Taken together, it represents an employees “total motivation level” Be familiar with examples of each. Extrinsic Motivators Examples- Good- Pay, Bonuses, promotions, benefits and perks, spot awards, praise, job security, support, free time Bad (lack of)- Disciplinary actions, demotions, terminations Intrinsic Motivators Examples- Good- Enjoyment, Interestingness, Acomplishment, knowledge gain, skill development, personal expression Bad (lack of)- Boredom, anxiety Frustration Why is money so important? Meaning of Money- the degree to which they view money as having symbolic, not just economic value - Achievement (money symbolizes success) - Respect (money brings respect in one’s community) - Freedom (money provides opportunity) 3. Be familiar with expectancy theory including the three main components, how those components can be influenced by organizations, how you can predict performance based on the theory. Expectancy Theory (Textbook Definition)- describes the cognitive process that employees go through to make choices among different voluntary responses. 1. Expectancy- represents that exerting a high level of effort will result in the successful performance of some task a. Technical Definition- expectancy is a subjective probability, ranging from 0 (no chance!) to 1 (a mortal lock!) that a specific amount of effort will result in a specific level of performance b. Self Efficacy- as the belief that a person has the capabilities needed to execute the behaviors required for task success i. Past accomplishments ii. Vicarious Experience iii. Verbal Persuasion iv. Emotional Cues 2. Instrumentality- represents the belief that successful performance will result in some outcomes a. Technical Definition- a set of subjective probabilities, each ranging from 0 (no chance!) to 1 (a mortal lock!) that successful performance will bring a set of outcomes. 3. Valence- reflects the anticipated value of the outcomes associated with performance. a. Positive Valence- I would prefer having outcome X to not having it i. Positive Valence- Salary increases, bonuses and informal rewards are typical examples b. Negative Valence- I would prefer not having outcome X to having it i. Negative Valence- disciplinary actions, demotions, and terminations c. Zero Valence- I’m bored are we still talking about outcome X o In general, outcomes are deemed more attractive when they help satisfy needs  Needs- cognitive grouping or clusters of outcomes that are viewed as having critical psychological or physiological consequences Expectancy Theory(Slides Definition)- Motivation is fostered when the employee believes three things: • That effort will result in performance. • That performance will result in outcomes. • That those outcomes will be valuable - Expectancy (Effort → Performance) o The belief that a high level of effort will lead to the successful performance of a task. o Expectancy can be shaped by:  Supportive Leadership  Access to Resources  Self-Efficacy - Instrumentality (Performance → Outcomes) o The belief that successful performance will result in certain outcomes. o Can be hindered by:  Inadequate budget to provide outcomes, even when performance is high.  Poor methods of measuring performance.  Use of policies that reward things other than performance, such as attendance or seniority.  Time delays in rewarding good performance. - Valence o Anticipated value of outcomes. o Positive.  Prefer having the outcome (salary increases, bonuses).  Outcomes that satisfy needs are more positively valanced. o Negative.  Prefer not having the outcome (disciplinary action, termination). o Zero.  No interest in the outcome either way (bored with outcome). Motivational Force= E-P x (PO) x V 4. Be familiar with the three need theories we discussed in class (Maslow’s hierarchy of needs; Alderfer’s ERG theory, and McClelland’s Acquired Need theory). Maslow Hierarchy of Needs- Physiological, Safety and Security, Belongingness, Esteem, Self-Actualization Alderfer’s ERG Theory- Existence, Relatedness, Growth McClelland’s Acquired Need Theory- Achievement, Power, Affiliation 5. What makes a goal an effective one? A goal is an effective one when it is specific and difficult Which of the main components of motivation is the focus of goal setting? - Specific - Measurable - Achievable - Result Based - Time Sensitive 6. What is the role of goal difficulty, feedback, task complexity, and goal commitment in the effectiveness of goal setting? - Feedback- consist of updates on employee progress toward goal attainment - Task Complexity- reflects how complicated the information and actions involved in a task are, as well as how much the task changes - Goal Commitment- the degree to which a person accepts a goal and is determined to try to reach it What influences goal commitment? - Rewards- Tie goal achievement to the receipt of monetary or nonmonetary rewards - Publicity- Publicize the goal to significant others and coworkers to create some social pressure to attain it - Support- Provide supportive supervision to aid employees if they struggle to attain the goal - Participation- collaborate on setting the specific proficiency level and due date for a goal so that the employee feels a sense of ownership over the goal - Resources- Provide the resources needed to attain the goal and remove any constraints that could hold back task efforts 7. What is the primary focus of equity theory? How is it determined? Motivation is maximized when an employees ratio of “outcomes” to “inputs” matches those of some “comparison other” Thus motivation also depends on the outcomes received by other employees 7. What are the various comparisons that people could make? Comparison Others - Job Equity- Compare yourself to others doing the same job in the same company, with similar levels of education, seniority, and performance - Company Equity- Compare yourself to others in the same company but in different jobs, with similar levels of responsibility and working conditions - Occupational Equity- Compare yourself to others doing the same job in other companies, with similar levels of education, seniority, and performance - Educational Equity- Compare yourself to others who have attained the same education level - Age Equity- compare yourself to others of the same age What are the different personality types in relation to equity theory? - Sensitives - Entitleds - Benevolents 8. What are the reactions to inequity and how do they differ in relation to positive and negative inequity? - Alter outcomes - Alter inputs - Alter comparison others inputs - Change the comparison other - Rationalization - Leave the situation 10. What is psychological empowerment and what four beliefs make it up? Psychological empowerment- an intrinsic form of motivation derived from the belief that ones work tasks are contributing to some larger purpose Fostered by 4 beliefs: Meaningfulness- captures the value of a work goal or purpose, relative to a persons own ideals and passions Self-determination- reflects a sense of choice in the initiation and continuation of work tasks Competence- captures a persons belief in their capability to perform work tasks successfully Impact- reflects the sense that a persons actions “make a difference”—that progress is being made toward fulfilling some important purpose 11. How does motivation relate to job performance and organizational commitment? - Motivation has a strong positive effect on Job Performance (around .5 magnitude) - Motivation has a moderate effect on Organizational Commitment (around .1 magnitude) 12. What are the various ways that organizations apply motivational concepts in compensation systems? Individual Focused - Piece-Rate- a specific rate is aid for each unit produced, each unit sold, or each service provided - Merit Pay- An increase to base salary is made in accordance with performance evaluation ratings - Lump-sum bonuses- A bonus is received for meeting individual goals but no change is made to base salary. - Recognition awards- Tangible awards (gift cards, trips, special events) or intangible awards (praise) are given on an impromptu basis to recognize achievement Unit Focused - Gainsharing- A bonus is received for meeting unit goals (department goals, plant goals, business unit goals) for criteria controllable by employees (labor costs, use of materials, quality) Organizational-Focused - Profit Sharing- A bonus is received when the publicly reported earnings of a company exceed some minimum level, with the magnitude of the bonus contingent on the magnitude of the profits Be familiar with how each relates to creating a clear goal and connecting the individual’s performance to outcomes. - Profit Sharing- unlikely to have strong motivational consequences because individual employees can do little to improve the profitability of the company, regardless of their job performance - Instrumentality and equity are more achievable with gainsharing because the relevant unit is smaller the relevant outcomes are mor controllable - The highest instrumentality and equity levels will typically be achieved though piece rate plans or merit pay plane o Merit is by far the most common - Merit Pay and Profit sharing offer little in the way of difficult and specific goals because bother essentially challenge employees to make next year as goof (or better) than this year - Lump-sum and gainsharing provide a forum for assigning difficult and specific goals; the former does so at the individual level and the latter at the unit level

1. What are the three components of performance? Motivation, ability and opportunity What are the three components of motivation? 1. Directions of Effort a. What are you going to do right now? 2. Intensity of Effort a. How hard are you going to work on it? 3. Persistence of Effort a. How long are you going to work on it? What is the role of engagement? Engagement- Term commonly used in the contemporary workplace to summarize motivation levels. A contemporary synonym, more or less for high levels of intensity and persistence in work effort 2. What is the difference between extrinsic and intrinsic motivators? Extrinsic motivators (Outwardly)- motivation that is controlled by some contingency that depends on task performance Intrinsic motivators (Inwardly)- motivation that is felt when task performance serves as its own reward - Taken together, it represents an employees “total motivation level” Be familiar with examples of each. Extrinsic Motivators Examples- Good- Pay, Bonuses, promotions, benefits and perks, spot awards, praise, job security, support, free time Bad (lack of)- Disciplinary actions, demotions, terminations Intrinsic Motivators Examples- Good- Enjoyment, Interestingness, Acomplishment, knowledge gain, skill development, personal expression Bad (lack of)- Boredom, anxiety Frustration Why is money so important? Meaning of Money- the degree to which they view money as having symbolic, not just economic value - Achievement (money symbolizes success) - Respect (money brings respect in one’s community) - Freedom (money provides opportunity) 3. Be familiar with expectancy theory including the three main components, how those components can be influenced by organizations, how you can predict performance based on the theory. Expectancy Theory (Textbook Definition)- describes the cognitive process that employees go through to make choices among different voluntary responses. 1. Expectancy- represents that exerting a high level of effort will result in the successful performance of some task a. Technical Definition- expectancy is a subjective probability, ranging from 0 (no chance!) to 1 (a mortal lock!) that a specific amount of effort will result in a specific level of performance b. Self Efficacy- as the belief that a person has the capabilities needed to execute the behaviors required for task success i. Past accomplishments ii. Vicarious Experience iii. Verbal Persuasion iv. Emotional Cues 2. Instrumentality- represents the belief that successful performance will result in some outcomes a. Technical Definition- a set of subjective probabilities, each ranging from 0 (no chance!) to 1 (a mortal lock!) that successful performance will bring a set of outcomes. 3. Valence- reflects the anticipated value of the outcomes associated with performance. a. Positive Valence- I would prefer having outcome X to not having it i. Positive Valence- Salary increases, bonuses and informal rewards are typical examples b. Negative Valence- I would prefer not having outcome X to having it i. Negative Valence- disciplinary actions, demotions, and terminations c. Zero Valence- I’m bored are we still talking about outcome X o In general, outcomes are deemed more attractive when they help satisfy needs  Needs- cognitive grouping or clusters of outcomes that are viewed as having critical psychological or physiological consequences Expectancy Theory(Slides Definition)- Motivation is fostered when the employee believes three things: • That effort will result in performance. • That performance will result in outcomes. • That those outcomes will be valuable - Expectancy (Effort → Performance) o The belief that a high level of effort will lead to the successful performance of a task. o Expectancy can be shaped by:  Supportive Leadership  Access to Resources  Self-Efficacy - Instrumentality (Performance → Outcomes) o The belief that successful performance will result in certain outcomes. o Can be hindered by:  Inadequate budget to provide outcomes, even when performance is high.  Poor methods of measuring performance.  Use of policies that reward things other than performance, such as attendance or seniority.  Time delays in rewarding good performance. - Valence o Anticipated value of outcomes. o Positive.  Prefer having the outcome (salary increases, bonuses).  Outcomes that satisfy needs are more positively valanced. o Negative.  Prefer not having the outcome (disciplinary action, termination). o Zero.  No interest in the outcome either way (bored with outcome). Motivational Force= E-P x (PO) x V 4. Be familiar with the three need theories we discussed in class (Maslow’s hierarchy of needs; Alderfer’s ERG theory, and McClelland’s Acquired Need theory). Maslow Hierarchy of Needs- Physiological, Safety and Security, Belongingness, Esteem, Self-Actualization Alderfer’s ERG Theory- Existence, Relatedness, Growth McClelland’s Acquired Need Theory- Achievement, Power, Affiliation 5. What makes a goal an effective one? A goal is an effective one when it is specific and difficult Which of the main components of motivation is the focus of goal setting? - Specific - Measurable - Achievable - Result Based - Time Sensitive 6. What is the role of goal difficulty, feedback, task complexity, and goal commitment in the effectiveness of goal setting? - Feedback- consist of updates on employee progress toward goal attainment - Task Complexity- reflects how complicated the information and actions involved in a task are, as well as how much the task changes - Goal Commitment- the degree to which a person accepts a goal and is determined to try to reach it What influences goal commitment? - Rewards- Tie goal achievement to the receipt of monetary or nonmonetary rewards - Publicity- Publicize the goal to significant others and coworkers to create some social pressure to attain it - Support- Provide supportive supervision to aid employees if they struggle to attain the goal - Participation- collaborate on setting the specific proficiency level and due date for a goal so that the employee feels a sense of ownership over the goal - Resources- Provide the resources needed to attain the goal and remove any constraints that could hold back task efforts 7. What is the primary focus of equity theory? How is it determined? Motivation is maximized when an employees ratio of “outcomes” to “inputs” matches those of some “comparison other” Thus motivation also depends on the outcomes received by other employees 7. What are the various comparisons that people could make? Comparison Others - Job Equity- Compare yourself to others doing the same job in the same company, with similar levels of education, seniority, and performance - Company Equity- Compare yourself to others in the same company but in different jobs, with similar levels of responsibility and working conditions - Occupational Equity- Compare yourself to others doing the same job in other companies, with similar levels of education, seniority, and performance - Educational Equity- Compare yourself to others who have attained the same education level - Age Equity- compare yourself to others of the same age What are the different personality types in relation to equity theory? - Sensitives - Entitleds - Benevolents 8. What are the reactions to inequity and how do they differ in relation to positive and negative inequity? - Alter outcomes - Alter inputs - Alter comparison others inputs - Change the comparison other - Rationalization - Leave the situation 10. What is psychological empowerment and what four beliefs make it up? Psychological empowerment- an intrinsic form of motivation derived from the belief that ones work tasks are contributing to some larger purpose Fostered by 4 beliefs: Meaningfulness- captures the value of a work goal or purpose, relative to a persons own ideals and passions Self-determination- reflects a sense of choice in the initiation and continuation of work tasks Competence- captures a persons belief in their capability to perform work tasks successfully Impact- reflects the sense that a persons actions “make a difference”—that progress is being made toward fulfilling some important purpose 11. How does motivation relate to job performance and organizational commitment? - Motivation has a strong positive effect on Job Performance (around .5 magnitude) - Motivation has a moderate effect on Organizational Commitment (around .1 magnitude) 12. What are the various ways that organizations apply motivational concepts in compensation systems? Individual Focused - Piece-Rate- a specific rate is aid for each unit produced, each unit sold, or each service provided - Merit Pay- An increase to base salary is made in accordance with performance evaluation ratings - Lump-sum bonuses- A bonus is received for meeting individual goals but no change is made to base salary. - Recognition awards- Tangible awards (gift cards, trips, special events) or intangible awards (praise) are given on an impromptu basis to recognize achievement Unit Focused - Gainsharing- A bonus is received for meeting unit goals (department goals, plant goals, business unit goals) for criteria controllable by employees (labor costs, use of materials, quality) Organizational-Focused - Profit Sharing- A bonus is received when the publicly reported earnings of a company exceed some minimum level, with the magnitude of the bonus contingent on the magnitude of the profits Be familiar with how each relates to creating a clear goal and connecting the individual’s performance to outcomes. - Profit Sharing- unlikely to have strong motivational consequences because individual employees can do little to improve the profitability of the company, regardless of their job performance - Instrumentality and equity are more achievable with gainsharing because the relevant unit is smaller the relevant outcomes are mor controllable - The highest instrumentality and equity levels will typically be achieved though piece rate plans or merit pay plane o Merit is by far the most common - Merit Pay and Profit sharing offer little in the way of difficult and specific goals because bother essentially challenge employees to make next year as goof (or better) than this year - Lump-sum and gainsharing provide a forum for assigning difficult and specific goals; the former does so at the individual level and the latter at the unit level

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1. What are the three components of performance?

Motivation, ability and opportunity

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What are the three components of motivation?

1. Directions of Effort

a. What are you going to do right now?

2. Intensity of Effort

a. How hard are you going to work on it?

3. Persistence of Effort

a. How long are you going to work on it?

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What is the role of engagement?

Term commonly used in the contemporary workplace to summarize motivation levels. A contemporary synonym, more or less for high levels of intensity and persistence in work effort

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1. What is the difference between extrinsic and intrinsic motivators?

Extrinsic motivators (Outwardly)- motivation that is controlled by some contingency that depends on task performance

Intrinsic motivators (Inwardly)- motivation that is felt when task performance serves as its own reward

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Taken together, it represents an employees is called

“total motivation level”

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Extrinsic Motivators Examples-

Good- Pay, Bonuses, promotions, benefits and perks, spot awards, praise, job security, support, free time

Bad (lack of)- Disciplinary actions, demotions, terminations

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Intrinsic Motivators Examples-

Good- Enjoyment, Interestingness, Acomplishment, knowledge gain, skill development, personal expression

Bad (lack of)- Boredom, anxiety Frustration

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Why is money so important?

- Achievement (money symbolizes success)

- Respect (money brings respect in one’s community)

- Freedom (money provides opportunity)

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Meaning of Money

the degree to which they view money as having symbolic, not just economic value

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Expectancy Theory

describes the cognitive process that employees go through to make choices among different voluntary responses.

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Expectancy

represents that exerting a high level of effort will result in the successful performance of some task

Effort —> Performance

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What can Expectancy be shaped by?

§ Supportive Leadership

§ Access to Resources

§ Self-Efficacy

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Self Efficacy

a. as the belief that a person has the capabilities needed to execute the behaviors required for task success

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What influences Self Efficacy?

i. Past accomplishments

ii. Vicarious Experience

iii. Verbal Persuasion

iv. Emotional Cues

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Instrumentality

represents the belief that successful performance will result in some outcomes

Performance —>Outcomes

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Valence

reflects the anticipated value of the outcomes associated with performance

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Positive Valence

I would prefer having outcome X to not having it

i. Salary increases, bonuses and informal rewards are typical examples

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Negative Valence

I would prefer not having outcome X to having it

disciplinary actions, demotions, and terminations

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Zero Valence

I’m bored are we still talking about outcome X

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expectancy theory including the three main components

That effort will result in performance.

• That performance will result in outcomes.

• That those outcomes will be valuable

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Maslows Hierarchy of Needs

Physiological, Safety and Security, Belongingness, Esteem, Self-Actualization

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Alderfer’s ERG Theory

Existence, Relatedness, Growth

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McClelland’s Acquired Need Theory

Achievement, Power, Affiliation

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1. What makes a goal an effective one?

A goal is an effective one when it is specific and difficult

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Which of the main components of motivation is the focus of goal setting?

- Specific

- Measurable

- Achievable

- Result Based

- Time Sensitive

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Feedback

consist of updates on employee progress toward goal attainment

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Task Complexity

- reflects how complicated the information and actions involved in a task are, as well as how much the task changes

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Goal Commitment

- the degree to which a person accepts a goal and is determined to try to reach it

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What influences goal commitment?

- Rewards- Tie goal achievement to the receipt of monetary or nonmonetary rewards

- Publicity- Publicize the goal to significant others and coworkers to create some social pressure to attain it

- Support- Provide supportive supervision to aid employees if they struggle to attain the goal

- Participation- collaborate on setting the specific proficiency level and due date for a goal so that the employee feels a sense of ownership over the goal

- Resources- Provide the resources needed to attain the goal and remove any constraints that could hold back task efforts

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What is the primary focus of equity theory? How is it determined?

Motivation is maximized when an employees ratio of “outcomes” to “inputs” matches those of some “comparison other”

Thus motivation also depends on the outcomes received by other employees

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1. What are the various comparisons that people could make?

- Job Equity- Compare yourself to others doing the same job in the same company, with similar levels of education, seniority, and performance

- Company Equity- Compare yourself to others in the same company but in different jobs, with similar levels of responsibility and working conditions

- Occupational Equity- Compare yourself to others doing the same job in other companies, with similar levels of education, seniority, and performance

- Educational Equity- Compare yourself to others who have attained the same education level

- Age Equity- compare yourself to others of the same age

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Job Equity

- Compare yourself to others doing the same job in the same company, with similar levels of education, seniority, and performance

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Company Equity

- Compare yourself to others in the same company but in different jobs, with similar levels of responsibility and working conditions

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Occupational Equity

- Compare yourself to others doing the same job in other companies, with similar levels of education, seniority, and performance

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Educational Equity

- Compare yourself to others who have attained the same education level

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Age Equity

compare yourself to others of the same age

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What are the different personality types in relation to equity theory?

- Sensitives

- Entitleds

- Benevolents

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What are the reactions to inequity

- Alter outcomes

- Alter inputs

- Alter comparison others inputs

- Change the comparison other

- Rationalization

- Leave the situation

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What is psychological empowerment?

an intrinsic form of motivation derived from the belief that ones work tasks are contributing to some larger purpose

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Fostered by 4 beliefs:

Meaningfulness- captures the value of a work goal or purpose, relative to a persons own ideals and passions

Self-determination- reflects a sense of choice in the initiation and continuation of work tasks

Competence- captures a persons belief in their capability to perform work tasks successfully

Impact- reflects the sense that a persons actions “make a difference”—that progress is being made toward fulfilling some important purpose

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11. How does motivation relate to job performance and organizational commitment?

- Motivation has a strong positive effect on Job Performance (around .5 magnitude)

- Motivation has a moderate effect on Organizational Commitment (around .1 magnitude)

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12. What are the various ways that organizations apply motivational concepts in compensation systems?

Individual Focused

- Piece-Rate- a specific rate is aid for each unit produced, each unit sold, or each service provided

- Merit Pay- An increase to base salary is made in accordance with performance evaluation ratings

- Lump-sum bonuses- A bonus is received for meeting individual goals but no change is made to base salary.

- Recognition awards- Tangible awards (gift cards, trips, special events) or intangible awards (praise) are given on an impromptu basis to recognize achievement

Unit Focused

- Gainsharing- A bonus is received for meeting unit goals (department goals, plant goals, business unit goals) for criteria controllable by employees (labor costs, use of materials, quality)

Organizational-Focused

- Profit Sharing- A bonus is received when the publicly reported earnings of a company exceed some minimum level, with the magnitude of the bonus contingent on the magnitude of the profits

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Individual Focused

Piece-Rate

Merit Pay

Lump-sum

Recognition Awards

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Unit Focused

Gain Sharing

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Organizational Focused

Profit Sharing

New cards

Piece-Rate

- a specific rate is aid for each unit produced, each unit sold, or each service provided

New cards

Merit Pay

- An increase to base salary is made in accordance with performance evaluation ratings

New cards

Lump-sum bonuses

- A bonus is received for meeting individual goals but no change is made to base salary.

New cards

Recognition awards

- Tangible awards (gift cards, trips, special events) or intangible awards (praise) are given on an impromptu basis to recognize achievement

New cards

Gainsharing

- A bonus is received for meeting unit goals (department goals, plant goals, business unit goals) for criteria controllable by employees (labor costs, use of materials, quality)

New cards

Profit Sharing

- A bonus is received when the publicly reported earnings of a company exceed some minimum level, with the magnitude of the bonus contingent on the magnitude of the profits

New cards

Be familiar with how each relates to creating a clear goal and connecting the individual’s performance to outcomes.

- The highest instrumentality and equity levels will typically be achieved though piece rate plans or merit pay plane

o Merit is by far the most common

- Merit Pay and Profit sharing offer little in the way of difficult and specific goals because bother essentially challenge employees to make next year as goof (or better) than this year

- Lump-sum and gainsharing provide a forum for assigning difficult and specific goals; the former does so at the individual level and the latter at the unit level