Motivating Employees and Leadership Principles

Motivation

Psychological processes that arouse and direct goal-directed behavior.

Personal factors

Factors such as needs, attitudes, and personality that influence motivation.

Contextual factors

Factors such as organizational culture and leadership style that influence motivation.

Content Perspectives

Focus on what motivates individuals (their needs).

Process Perspectives

Focus on how people decide to act.

Job Design Perspectives

Focus on designing jobs that motivate people.

Reinforcement Perspectives

Focus on how consequences of behavior affect future behavior.

Maslow's Hierarchy of Needs

Five levels: Physiological, Safety, Love/Belonging, Esteem, Self-Actualization.

Physiological Needs

Basic needs such as food and water.

Safety Needs

Needs for security and protection.

Love/Belonging Needs

Needs for friendship and love.

Esteem Needs

Needs for status and recognition.

Self-Actualization Needs

Need for achieving potential.

McClelland's Acquired Needs Theory

Theory identifying three needs: Achievement, Affiliation, Power.

Achievement Need

Need to excel at tasks.

Affiliation Need

Need for friendly relationships.

Power Need

Need to control others.

Deci and Ryan's Self-Determination Theory

Theory identifying three innate needs: Competence, Autonomy, Relatedness.

Competence Need

Need for mastery.

Autonomy Need

Need for control over work.

Relatedness Need

Need for connection with others.

Herzberg's Two-Factor Theory

Theory distinguishing between hygiene factors and motivators.

Hygiene Factors

Factors such as pay and work conditions that prevent dissatisfaction.

Motivators

Factors such as achievement and recognition that create satisfaction.

Equity/Justice Theory

Theory where employees compare their inputs and outputs with others.

Expectancy Theory

Theory stating motivation depends on expectancy, instrumentality, and valence.

Goal-Setting Theory

Theory stating specific, challenging goals enhance motivation.

SMART Goals

Goals that are Specific, Measurable, Attainable, Relevant, Time-bound.

Fitting People to Jobs

Classical approach to match the worker's skills to the job's requirements.

Fitting Jobs to People

Modern approach to design jobs based on workers' needs and skills.

Job Characteristics Model

A framework by Hackman and Oldham identifying five core job characteristics: skill variety, task identity, task significance, autonomy, and feedback.

Skill variety

The degree to which a job requires a variety of different activities and skills.

Task identity

The degree to which a job requires completion of a whole and identifiable piece of work.

Task significance

The degree to which a job has a substantial impact on the lives or work of other people.

Autonomy

The degree to which a job provides freedom, independence, and discretion to the individual in scheduling the work and determining how to carry it out.

Feedback

The degree to which carrying out work activities provides direct and clear information about the effectiveness of performance.

Reinforcement

A process in which consequences are used to increase or decrease a behavior.

Positive Reinforcement

Reward desirable behavior (e.g., bonuses for good performance).

Negative Reinforcement

Remove unpleasant conditions following desired behavior (e.g., stop nagging once an employee improves).

Extinction

Ignore undesirable behavior so it eventually stops.

Punishment

Apply negative consequences to reduce unwanted behavior.

Base pay

Fixed salary or wage.

Incentive pay

Bonuses and profit sharing.

Benefits

Health insurance and vacation.

Non-monetary incentives

Flexible schedules and learning opportunities.

Gainsharing

Sharing cost savings with employees.

Profit sharing

Distributing a portion of profits to employees.

Stock options

Giving employees a stake in the company's success.

Maslow's Hierarchy of Needs

A theory that suggests fulfilling basic needs first, then moving up to higher needs like self-actualization.

McClelland's Acquired Needs

A theory stating that individuals are motivated by achievement, affiliation, or power.

Deci & Ryan's Self-Determination Theory

A theory that states motivation is a function of competence, autonomy, and relatedness.

Herzberg's Two-Factor Theory

A theory that distinguishes between hygiene factors that prevent dissatisfaction and motivators that drive satisfaction.

Equity/Justice Theory

A theory that states motivation is affected by perceived fairness in outcomes, processes, and treatment.

Expectancy Theory

A theory that states motivation is a product of expectancy, instrumentality, and valence.

Goal-Setting Theory

A theory that posits specific, challenging goals lead to higher performance.

Base pay

The initial salary paid to an employee before any additional compensation.

Incentive Pay

Compensation beyond base pay, designed to motivate employees to perform better.

Benefits

Non-wage compensation provided to employees, such as health insurance and retirement plans.

Non-monetary incentives

Rewards that do not involve direct financial compensation, such as recognition or additional responsibilities.

Gainsharing

A program where cost savings are shared among employees.

Profit sharing

A system where employees receive a share of the company's profits.

Stock options

A benefit that gives employees the right to purchase company stock at a predetermined price.

Leaders

Individuals who inspire, influence, create vision, and motivate toward change.

Managers

Individuals who plan, organize, control, and execute tasks.

Key Difference between Managers and Leaders

Managers cope with complexity; leaders cope with change.

Managerial Leadership

Leadership as part of a manager's role, influencing others to understand and agree about goals.

Coping with Complexity

Managers handle complexity by planning, organizing, and monitoring activities efficiently and effectively.

Legitimate Power

Formal authority to make decisions, such as a manager assigning work schedules.

Reward Power

The ability to give rewards, like bonuses for top performance.

Coercive Power

The ability to punish, such as the threat of demotion for poor work.

Expert Power

Power derived from expertise or skills, like an IT specialist solving complex tech issues.

Referent Power

Power that comes from personal attraction, like a beloved leader inspiring loyalty.

Influence tactics

Methods used to influence others, including rational persuasion and inspirational appeals.

Positive Task-Oriented Traits

Traits linked to leadership, such as intelligence and emotional stability.

Effective Leadership

Requires balancing task- and relationship-oriented behaviors depending on the situation.

Transformational Leadership

A leadership style where leaders inspire followers to transcend self-interest for the organization's sake.

Transformational Leadership

They create significant organizational change by raising motivation and morality.

Inspirational Motivation

Share a compelling vision.

Idealized Influence

Model desirable traits; earn trust.

Individualized Consideration

Encourage and support followers individually.

Intellectual Stimulation

Challenge followers to be creative and innovative.

Leader-Member Exchange (LMX) Model

Leaders develop unique relationships with each follower (in-groups and out-groups).

High-quality exchanges

Higher job satisfaction and performance.

The Power of Humility

Humble leaders acknowledge their limits, admit mistakes, and elevate others — leading to stronger trust and collaboration.

Followers' Needs

Followers want leaders who create significance, community, and competence.

Aligning Strategy, Culture, and Structure

Strategy, culture, and structure must fit together for an organization to succeed.

Culture Impact

Culture impacts behavior and motivation; structure dictates how work is divided and coordinated.

Misalignment Consequence

A misalignment between strategy, culture, and structure → confusion, inefficiency, poor results.

Types of Organizational Culture

Four types: Clan (collaborative, like a family), Adhocracy (innovative and adaptable), Market (competitive, results-driven), Hierarchy (structured, controlled).

Culture Change Process

Culture can be changed by altering symbols, stories, rituals, rewards, training, and leadership behaviors.

Types of Organizations

For-Profit Organizations (Make money by offering products/services), Nonprofit Organizations (Offer services, not focused on profits), Mutual-Benefit Organizations (Advance members' interests).

Organization Chart

Visual representation showing who reports to whom and how tasks are formally divided.

Vertical Hierarchy

Chain of command (authority lines).

Horizontal Specialization

Division of labor (who does what tasks).

Common Purpose

Unifies employees; gives direction.

Coordinated Effort

Working together toward a goal.

Division of Labor

Specialization improves efficiency.

Hierarchy of Authority

Chain of command, control.

Span of Control

How many people one manager supervises; narrow span = tight control; wide span = more autonomy.

Centralization vs. Decentralization

Centralized = important decisions made by top management; Decentralized = decisions pushed down to lower levels.