OB-chapter 5 & 6

Intrinsic Motivation

Motivation that stems from the direct relationship between the worker and the task; it is usually self-applied

ex. Doing a task because it’s personally satisfying or enjoyable.

Extrinsic Motivation

Motivation that stems from the work environment external to the task

Working hard to earn a bonus or avoid punishment.

Motivation → preformance

general cognitive ability, personalitiy, tasking understanding, ei, chace

Maslow’s Hierarchy of Needs (Needs-Based)

People are motivated to fulfill a hierarchy of needs:
Physiological → Safety → Social → Esteem → Self-actualization

Alderfer ERG Theory

Simplifies Maslow into three core needs:, extrinsic to intrinsic

• Existence (basic survival)

• Relatedness (social connections)

• Growth (personal development)

McClelland’s theory of needs (APA)

• motivation comes from learned needs

  • Ach = Achievement(drive to excel)

  • nPow = Power (desire to influence others)

  • nAff = Affiliation (desire for friendly relationships)

• Motivation depends on which need is dominant.
  • People will be motivated at work to the extent that their job matches
  their needs

Self-determination theory ( 3 )

Focuses on types of motivation and satisfaction of 3 basic psychological needs (universal, non-hierarchical):

1. Competence — feeling effective/mastery

2. Autonomy — feeling choice/control over actions

3. Relatedness — feeling connected to others

   Motivation types:

   • Autonomous motivation (intrinsic/self-determined)

     • Driven by interest and choice

     • Internally regulated

   • Controlled motivation (extrinsic/not self-determined)

     • Driven by external rewards or pressure

     • Externally regulated

expectancy theory( Process theories of motivation)

process theory that states that motivation is determined by the outcomes that people expect to occur as a result of their actions on the job

Expectancy: Belief about the probability that effort will lead to successful performance.(Effort → Performance)

ex. "If I study hard, will I get an A?

Instrumentality: Belief that performing well will lead to desired outcomes

ex. "If I get an A, will I get a scholarship?(Performance → Outcome)

Valence (Value of Outcome)

• The attractiveness or value of the outcome to the individual.

• Can be positive, negative, or neutral depending on the person.

• Example: "How much do I care about getting the scholarship?

Equity theory( Process theories of motivation)

People their inputs (effort, skills, experience) and outcomes (pay, recognition) with those of others

• underpayment → low motivation, turnover, theft

• Overpayment may not motivate

• Employees decide what inputs/outcomes and comparisons matter

• Managers must know what employees value (pay, seniority, etc.)

• Employees compare with others inside/outside the company

• Pay may need adjusting to keep top talent

Goal-Setting Theory SCCF( Process theories of motivation)

• Specific & Challenging Goals: Clear, measurable goals with a deadline motivate better than vague goals like “do your best.”

• Challenge: Goals should be tough but achievable based on individual skill and past performance. Too hard = no motivation.

• Goal Commitment: Individuals must accept and commit to the goal for motivation to work, especially for hard goals.

• Goal Feedback: Ongoing, accurate, and timely feedback on progress helps maintain motivation and goal achievement.

Goal Orientation ( 3)

• Learning Goal Orientation: Focus on learning new skills and competence development.

• Performance-Prove Orientation: Aim to demonstrate competence and get positive judgments.

• Performance-Avoid Orientation: Aim to avoid negative judgments about performance.

Goal Proximity

• Distal Goals: Long-term, end goals (e.g., overall sales target).

• Proximal Goals: Short-term, sub-goals that help achieve distal goals and provide frequent feedback.

Pay as motivator

Blue Collar jobs: (factory/ manual)

• Wage incentive plans

• Piece-rate pay

• Can lower work quality

• Creates unequal opportunities

• Reduces teamwork/cooperation

• Job design may not support incentives

• May limit overall productivity

White collar (office)

• Pay increases are often based on performance evaluations (merit pay).

• However, the money may not motivate well because:

  • hard to tell who did better (low discrimination).

  • Pay raises tend to be small, so they don’t feel very rewarding

Variable Pay

portion of pay based on performance

ex. commission-based bonuses

Piece-rate

pay system in which individual workers are paid a specific amount of money for each unit of production they complete.

ex. factory worker earns $3 for every toy assembled, motivating them to produce more units to increase their earning

Wage Incentive Plans (4)

Systems that tie pay to performance, often using bonuses or extra pay for exceeding targets.

ex: Factory workers get a base wage plus a bonus for every 100 units over quota.

Cons:

• Lowered Quality: Focus on quantity can reduce quality.

• Unequal Opportunity: Some workers may have fewer chances to earn incentives.

• Reduced Teamwork: Individual rewards can hurt collaboration.

• Poor Fit: Not all jobs suit performance-based pay.

• Effort Restriction: Workers may limit output to avoid higher future expectations or cuts.

Merit pay plans

system where employees get pay increases based on their performance evaluations, usually done by their managers, to reward good work.

Using pay to motivate teamwork (PEGS)

Profit Sharing
return of some company profit to employees in the form of a cash bonus or a retirement supplement.
ex. Employees receive a yearly bonus based on the company’s overall profit.

Employee Stock Ownership Plans (ESOPs)
Incentive plans that allow employees to own a set amount of a company’s shares and provide employees with a stake in the company’s future earnings and success.
ex. Employees can buy shares at a fixed price to share in the company’s growth.

Gainsharing
A group pay incentive plan based on productivity or performance improvements over which the workforce has some control.
ex. Workers receive bonuses when the team reduces costs or increases efficiency.

Skill-Based Pay
A system in which people are paid according to the number of job skills they have acquired.
ex. Employees earn higher pay as they learn more skills relevant to their job.

Job Design

structure, content, and configuration of a person’s work tasks and roles.
ex. Organizing a position to include both customer service and inventory management tasks.

Job scope

The breadth and depth of a job.
Example: A job that requires performing multiple types of tasks (breadth) and gives the worker freedom to decide how to do them (depth).

Breadth

The number of different activities performed on a job.
ex. An employee handling sales, marketing, and customer support has wide job breadth.

Depth

the degree of discretion or control a worker has over how work tasks are performed.
Ex. A manager deciding how to schedule the team’s workload exercises job depth.

Stretch Assignments

Challenging assignments and projects that are larger in scope than one’s current job and involve more responsibility.
ex. Leading a company-wide project even though the employee’s usual role is limited to one department.

job rotation

Rotating employees to different tasks and jobs in an organization.
ex. An employee works in marketing for six months, then switches to sales for the next six months.

Components of a job (SATTF)

Skill variety – Doing different tasks using different skills.
Example: A graphic designer who edits videos, designs posters, and creates logos.

Autonomy – Having freedom to plan and do your work your own way.
Example: A remote worker who sets their own schedule and decides how to finish tasks.

Task significance – The job’s impact on others.
Example: A nurse whose work directly helps improve patients’ health.

Task identity – Doing a whole, complete task from start to finish.
Example: A baker who prepares, bakes, and decorates an entire cake.

Feedback

Motivating Potential Score (MPS) Formula

extent to which a job is designed to motivate

MPS=( skill variety + task identity + task significance )/3 x autonomy x feedback

Job enrichment

Designing jobs to intrinsic boost motivation, job quality, and involvement.
ex, Giving an employee more decision-making power and responsibility in their role

Job involement

How much a person identifies with their job and sees it as part of who they are.
ex. teacher who feels personally connected to student success and sees teaching as part of their identity.

Job enlargement

Increasing job breadth by giving employees more tasks at the same level to perform but leaving other core characteristics unchanged
ex. A cashier who now also restocks shelves and cleans the checkout area

Relational Architecture of Jobs

structural features of a job that influence how much employees can connect and interact with others.
ex. customer support rep constantly communicates with clients, coworkers, and supervisors — their job is built around helping and connecting with people.

prosocial Motivation

desire to put in effort to help or benefit other people.
ex. A teacher stays after school to tutor struggling students — not for extra pay, but because they genuinely want to help.

Job Crafting

Self-initiated changes employees make to their job demands or resources to better align their job with their strengths, interests, or needs.
ex. An employee who enjoys design asks to help create presentations for the team, even though it’s not officially part of their role.

Management by Objectives (MBO)

Structured program for setting goals + tracking progress
ex. Manager + employee set quarterly sales targets + meet to check in

Job sharing

An alternative work schedule in which two part-time employees divide the work of a full-time job.

Work sharing

Reducing the number of hours employees work to avoid layoffs when there is a reduction in normal business activity.

Motivating a diverse workforce:

Alternative work schulde

• Flex-time- arrival and departure times are flexible.

• 4-day work week

• Job Sharing- alternative work schedule in which two part-time employees divide the work of a full-time job.

• Remote & Hybrid work

JCM: Increasing the MPS ( 5 )

• Combine tasks

• Establish external & internal client relationships

• Expand jobs vertically

• Create work teams

• Open feedback channels