5. Employee Motivation, Rewards, and Job Satisfaction

Employee Motivation

The forces that initiate, direct, and sustain work-related behavior.

Intrinsic Motivation

Motivation arising from interest, enjoyment, or satisfaction in performing an activity itself.

Extrinsic Motivation

Motivation driven by outcomes separate from the activity, such as pay, rewards, or recognition.

Intrinsic vs. Extrinsic Motivation

Doing the activity because it is satisfying vs. doing it to obtain an external outcome.

Self-Esteem

An individual’s overall evaluation of their own worth.

Need for Achievement

The desire to accomplish challenging goals and meet high standards.

Need for Power

The desire to influence or control other people.

Need for Affiliation

The desire for friendly relationships and acceptance by others.

Needs

Internal conditions that create a desire for particular outcomes.

Values

Beliefs about what is important or desirable.

Wants

Specific outcomes an individual desires.

Job Expectations

An employee’s beliefs about what a job and organization will provide.

Expectancy Theory

Motivation depends on beliefs about whether effort leads to performance, performance leads to outcomes, and those outcomes are valued.

Expectancy

The belief that effort will lead to successful performance.

Instrumentality

The belief that successful performance will lead to particular outcomes or rewards.

Valence

The value an individual places on a potential outcome or reward.

Expectancy vs. Instrumentality vs. Valence

Effort leads to performance vs. performance leads to rewards vs. how much the reward is valued.

Goal-Setting Theory

Specific and challenging goals can improve performance when employees are committed to them and receive appropriate feedback.

Goal Specificity

Goals should clearly state what is to be achieved.

Goal Difficulty

Goals should be challenging but reasonably attainable.

Goal Commitment

The degree to which an individual is determined to achieve a goal.

Goal Feedback

Information about progress toward a goal.

Effective Goal Setting

Goals should be specific, challenging but attainable, accepted or supported by the employee, and accompanied by feedback.

Employee Participation

Involving employees in decisions that affect their work.

Feedback

Information about performance that helps employees understand their progress toward goals.

Operant Conditioning

Learning in which behavior is influenced by its consequences.

Reinforcement

A consequence that increases the likelihood that a behavior will occur again.

Positive Reinforcement

Providing a desirable consequence after a behavior to increase that behavior.

Negative Reinforcement

Removing an unpleasant condition after a behavior to increase that behavior.

Punishment

A consequence intended to decrease the likelihood of a behavior.

Extinction

Reducing a behavior by discontinuing the reinforcement that maintains it.

Positive Reinforcement vs. Negative Reinforcement

Adding a desirable consequence vs. removing an unpleasant condition; both increase behavior.

Reinforcement vs. Punishment

Reinforcement increases behavior; punishment decreases behavior.

Reward Contingency

The extent to which a reward depends on a specified behavior or level of performance.

Reward Timing

The timing of a reward influences how clearly employees connect it with their behavior.

Equity Theory

Employees compare their contributions and outcomes with those of others and respond to perceived fairness or unfairness.

Inputs

What an employee contributes, such as effort, skills, time, and experience.

Outcomes

What an employee receives, such as pay, benefits, recognition, and opportunities.

Perceived Inequity

A perceived imbalance between an employee’s inputs and outcomes compared with those of others.

Equity vs. Equality

Equity concerns fairness relative to contributions and circumstances; equality means equal treatment or distribution.

Job Characteristics Model

A model linking core job characteristics to psychological states and work outcomes.

Skill Variety

The extent to which a job requires different skills and talents.

Task Identity

The extent to which a job involves completing a whole, identifiable piece of work.

Task Significance

The extent to which a job affects other people or society.

Autonomy

The degree of freedom and discretion an employee has in performing a job.

Task Feedback

Information about the effectiveness of an employee’s performance.

Core Job Characteristics

Skill variety, task identity, task significance, autonomy, and feedback.

Meaningfulness of Work

The extent to which employees perceive their work as valuable and worthwhile.

Responsibility for Outcomes

The extent to which employees feel personally accountable for work results.

Knowledge of Results

Understanding how effectively one has performed a job.

Pay for Performance

A compensation approach in which pay is linked to measured performance.

Merit Pay

A pay increase based on an evaluation of an employee’s performance.

Individual Incentive Plan

A reward system linking an individual employee’s performance to incentives.

Group Incentive Plan

A reward system in which incentives depend on group or team performance.

Organizational Incentive Plan

A reward system linked to broader organizational performance.

Profit Sharing

A plan in which employees receive a share of organizational profits according to the plan’s terms.

Gainsharing

A plan that rewards employees for improvements in group or organizational performance, such as productivity or cost savings.

Stock Options

Rights to buy company stock at a specified price under established conditions.

Financial Rewards

Monetary compensation or incentives provided in exchange for work or performance.

Nonfinancial Rewards

Rewards such as recognition, responsibility, development opportunities, or meaningful work.

Individual vs. Group Incentives

Individual incentives reward personal performance; group incentives reward collective performance.

Reward System Design

Incentives are more useful when employees understand the criteria, value the rewards, and perceive the system as fair.

Job Satisfaction

The extent to which employees feel positively about their jobs.

Job Expectations and Satisfaction

Satisfaction is influenced by how actual job experiences compare with what employees expected.

Person-Job Fit

The match between an individual’s characteristics and the requirements or rewards of a job.

Person-Organization Fit

The match between an individual’s values and characteristics and those of the organization.

Life Satisfaction

An individual’s overall evaluation of their life, which may relate to job satisfaction.

Coworker Satisfaction

Positive feelings associated with relationships with coworkers.

Supervisor Satisfaction

Positive feelings associated with the supervisor’s behavior and relationship with employees.

Equity of Rewards

Employees’ perceptions that pay, benefits, and other outcomes are distributed fairly.

Job Challenge

Work that provides meaningful demands and opportunities to use or develop skills.

Affective Commitment

Organizational commitment based on emotional attachment.

Continuance Commitment

Organizational commitment based on the perceived costs of leaving.

Normative Commitment

Organizational commitment based on a sense of obligation.

Job Satisfaction vs. Organizational Commitment

Satisfaction concerns feelings about the job; commitment concerns attachment to the organization.

Motivation vs. Job Satisfaction

Motivation concerns the forces directing behavior; satisfaction concerns how positively a person evaluates the job.

Employee Recognition

Acknowledging an employee’s contributions or achievements.