mgmt exam 2

motivation

a set of forces that initiates, directs and makes people persist in their efforts to accomplish a goal.

employee engagement

an individual's involvement with, satisfaction with, and enthusiasm for the work he or she does

performance ability x motivation

Individual satisfaction and organizational contribution leads to

success with values, goals, strategy

Dank Pink Video

Gave a group of students tasks to do- to incentivize performance, they were given 3 levels of reward - to performance given most money

as long as the task involved ONLy mechanical skill, bonuses worked as expected

- once the tasks called for even a little cognitive skill, LARGER REWARD LED TO POORER PERFORMANCE
- rewards dont work as they should\-- same thing happened in madurai (rural) india
in india, the people who were offered the top reward did the worst of all --\> higher incentives led to worse performance

- reward good for simple, algorythmic, straight forwards tasts \--- when tasks require conceptual, creative thinking those motivators dont work

if you don't pay people enough, they will be motivated
so do what? pay people enough to take the issue off the table

3 factors that lead to better performance -Autonomy, Mastery, Purpose
if you want engagement, not compliance, self direction is key (autonomy)

atlassian- Australian software company - say that you can work in any way you want\-- that one day of pure atonomy brought whole new ideas

mastery- urge to get better at stuff -

purpose motive- more and more orgs wants to uphold purpose instead of profit motive
- treat people like people, not horses

basics of motivation

-Effort and performance
-Need satisfaction
-Extrinsic and intrinsic rewards
-How to motivate with the basic model of motivation

basic model of work motivation and performance

Effort (initiation, direction, persistence) \= performance

effort and performance

Job Performance \= Motivation x Ability x Situational Constraints

(the constraints) all the motivation in the world wont help if employees dont have the skills or the equirpment/software that they operate is inadequate

need satisfaction

- Needs; the physical or psychological requirements that must be met to ensure survival and well-being

- A person's unmet need creates an uncomfortable, internal state of tension that must be resolved.

- People are motivated by unmet needs

- Managers must learn what those unmet needs are, and address them.

- Once a need is met, it no longer motivates

basic model of work motivation and performance pt 2

Unsatisfied needs leads to

tension leads to

energized to take action which leads to

effort
-initiation
- direction
-persistence

which leads to performance

which leads to satisfaction and goes back to an unsatisfied need

a person's unsatisfied need creates an uncomfortable internal state of tension that must be resolved. According to needs theories, people are motivated by unment needs. Once a need is met, it no longer motivates. When this occurs, people become satisfied

predictions of need theories

Maslow-needs are arranged in a hierarchy from low to high; people are motivated by their lowest unsatisfied needs

Alderfer-people can be motivated by more than one need at a time

McClelland-the degree to which particular needs motivate varies from person to person

maslow

needs are arranged in a hierarchy from low to high; people are motivated by their lowest unsatisfied needs

people are motivated by physiological (food and water), safety (physical and economic), belongingness (friendship, love, social interaction), esteem (achievement and recognition), and self-actualization (realizing your full potential) needs.

alderfer

people can be motivated by more than one need at a time

collapses Maslow's five needs into three: existence (safety and physiological needs), relatedness (belongingness), and growth (esteem and self-actualization).7

McClelland

the degree to which particular needs motivate varies from person to person

Theory suggests that people are motivated by the need for affiliation (to be liked and accepted), the need for achievement (to accomplish challenging goals), or the need for power (to influence others).

Maslow's Heirarchy of Needs Theory

!. Physiological needs
2. Safety and security needs.
3. Love and belonging
4. Self-esteem needs
5. Self-actualization needs

physiological need

1. physiological need - the most basic human need: need for food, clothing, shelter, preservation

\--- these are covered by wages

safety need

2. safety need: need for physical safety, emotional security, avoidance of violence

- health insurance, job security, work safety rules, pension plans

love need

need for love, friendship, affection

- office parties, company softball teams, management retreats

esteem need

need for self respect, status, reputation, recognition, self-confidence

- bonuses, promotions, awards

self actualization need

the highest level need. need for self-fulfillment: increasing competence, using abilities to the fullest

\-- sabbatical leave ( granted travel) to further personal grown

motivation stage 6

may include "insubordination"
ex: Consul Aristides De Sousa Mendez and his
staff work 10 days barely stopping to sleep
and, before dropping from exhaustion
issued 30,000 visas, single-handedly saving
the most lives during WWII"

You will stick to your principles even
if your decision conflicts with the law

Alderfer's ERG Theory

°Assumes that three basic needs influence behavior: existence, relatedness, and growth
°
°Cultural differences influence our need states
°
°People are motivated by different needs at different times in their lives and can be motivated by more than one need at a time

McClelland's Acquired Needs Theory

Acquired Needs Theory
states that three needs:

achievement,
affiliation,
and power

are major motives determining people's behavior in the workplace

the degree to which particular needs motivate varies by person

the worth of brutal facts video

kid quits practice- "in this lifetime you have to prove nothing to nobody except for yourself, if it hasnt happened already it wont

--"Prove What?" - the problem with pleasing other people is the room for personal disappointment

the greatest motivator of all business?

NOT MONEY

being valued as an employee

his example of motivation

specialized in taking a genre and doing compilations

\-- you would get a booklet and a masthit(?) when you bought a CD

\-- people would rather have their names on the masthit than a 5000 check because they wanted to be recognized for their work and recognized by other employees

david pink main message

pay people enough money to take the issue off the table

Autonomy- self directive
mastery - urge to get better at stuff (playing instruments)
purpose- organizations want a purpose for people

if you want engagement, self direction of employees is key ex: linux, apache

Daniel Pink has found that autonomy, mastery and purpose are the main motivators for most. Money is a good motivator A) you have to pay enough so people don't have to worry about money. B) if used for routine non-cognitive tasks.

the "power" paradox

-executives are happier than their direct reports because of self autonomy

-power to do what you want in your life

- happier relationships if we are in control, but not incontrol of the other person - you can only change yourself " if I lost you I would still be ok"

- a predictor of happiness derived from power comes from "authenticity"
\-- the more authentic you are the happier you are

- "seeking power" makes people unhappy

motivating employees

±Higher order needs will not motivate as long as lower order needs remain unfulfilled

±Start by asking what their needs are

±Satisfy lower-order needs first

±Expect people's needs to change

extrinsic rewards

benefits and/or recognition received from someone else

°tangible and visible to others and are given to employees contingent on the performance of specific tasks or behaviors

intrinsic rewards

satisfaction a person receives from performing the particular task itself

equity theory

- main issue- its what people think, not facts

people will be motivated at work when they perceive that they are being treated fairly.

stresses the importance of perceptions. So, regardless of the actual level of rewards people receive, they must also perceive that, relative to others, they are being treated fairly.

components of equity theory

inputs, outcomes, and referents

Inputs - contributions employees make to the organization. They include education and training, intelligence, experience, effort, number of hours worked, and ability.

Outcomes - employees receive in exchange for their contributions to the organization. Outcomes include pay, fringe benefits, status symbols, and job titles and assignments.

And, since perceptions of equity depend on comparisons, referents are others with whom people compare themselves to determine if they have been treated fairly.

Usually, people choose to compare themselves with referents who hold the same or similar jobs or who are otherwise similar in gender, race, age, tenure, or other characteristics.

intrinsic vs extrinsic rewards

both extrinsic and intrinsic rewards are important.

that the most important rewards were good benefits and health insurance, job security, a week or more of vacation (all extrinsic rewards), interesting work, the opportunity to learn new skills, and independent work situations (all intrinsic rewards).

And employee preferences for intrinsic and extrinsic rewards appear to be relatively stable.

important and meaningful work matters more to employees than what they are paid.

under reward

- when you are getting fewer outcomes relative to your inputs than the referent

over reward

you are getting more outcomes relative to your inputs than the referent

In theory, when people perceive that they have been over rewarded, they experience guilt.

- struggle with oneself - ' eventually they will find out that I am just average'

reacting to inequity

±Decreasing or withholding inputs (your contributions)

±Increasing outcomes (what you get for your contributions—ask for raise, file a complaint)

±Rationalize or distort inputs to outcomes (it could be worse...!)

±Changing the referent

±Leave the company

his example with referent

she got paid 50K more than him, he said it was ok as long as it didnt come out of his own pocket

equity theory for manager

-look for and correct major inequities
- reduce employee's inputs (contributions that make to the company) such as TIME
- increase employee's outcomes (what they receive)
- a raise

make sure the decision making processes are fair

distributive justice

the degree to which outcomes and rewards are fairly distributed or allocated.

procedural justice

the fairness of the procedures used to make reward allocation decisions, is just as important.

expectancy theory of motivation

people will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance wil be rewarded, and that they will be offered attractive rewards

not everyone is attracted to the same rewards

components of expectancy theory

Motivation \= Valence x Expectancy x Instrumentality

valence

°"How much do I want the outcome?" the value a worker assigns to an outcome (Value & Preference)

the attractiveness or desirability of various rewards or outcomes.

same reward or outcome—say, a promotion—will be highly attractive to some people, will be highly disliked by others, and will not make much difference one way or the other to still others.

expectancy

°"Will I be able to perform at the desired level on a task?" belief that a particular level of effort will lead to a particular level of performance (Effort Performance)

the perceived relationship between effort and performance. When expectancies are strong, employees believe that their hard work and efforts will result in good performance, so they work harder.

instrumentality

±"What outcome will I receive if I perform at this level?" expectation that successful performance of the task will lead to the desired outcome (Performance Outcome or Reward)

the perceived relationship between performance and rewards. When instrumentality is strong, employees believe that improved performance will lead to better and more rewards, so they choose to work harder.

expectancy, low

I gave my staff in Hong Kong a sales target goal for their budget that they deemed impossible to achieve. Their yearly bonus was tied to that sales target. That year their \_____ was probably \____.

instumentality, low

Ha's boss promised her a big bonus if she met her goals. At the end of the year, after Ha had exceeded her goals, she found her bonus was very small. In the future, Ha's \_____ will probably be \____.

reinforcement theory

Behavior is a function of its consequences,

behaviors followed by positive consequences will occur more frequently,

and behaviors followed by negative consequences, or not followed by positive consequences, will occur less frequently.

components of reinforcement theory

1. Positive reinforcement
2. Negative reinforcement
3. Punishment
4. Extinction

positive reinforcement

strengthens behavior
\-- use of positive consequences to encourage desired behavior (you get a raise)

negative reinforcement

- strengthens behavior

removal of unpleasant consequences or something negative following a desired behavior (I stop nagging at you, or you no longer have the worst sales territory...)

also called avoidance learning because workers perform a behavior to avoid a negative consequence

negative reinforcement

"You finally did it right Smythers!" When a manager stops nagging a subordinate, the manager is using:

extinction

weakens behavior by ignoring or making sure it is not enforced

withholding or withdrawal of positive rewards, so that undesirable behavior is less likely to occur
(no raise, or stop encouraging interruptions)

punishment

weakens behavior by presenting something negative or withdrawing something positive

application of negative consequences or introducing something negative to stop or change undesirable behavior
You are suspended, or fined, or red carded

reinforcement example

Since asking nicely didn't work, two towns (Colmenar Viejo and Brunete) in Spain went further by hiring detectives and volunteers to video or expose the owner and the dog, tying them to city license records.

The punishment!?: Fines and also their dog's poop was mailed back to the owners with a note: "it's your dog, it's your dog poop, we're just returning it to you."

Motivating with Reinforcement Theory

identify, measure, analyze, intervene, evaluate

- dont reinforce the wrong behaviors

- correctly administer punishment at the appropriate time

- choose the simplest and most effective schedule of reinforcement

interview with The Bobs

Peter does not get reawrded for his work
- when he makes a mistake, 8 people tell him he didnt do something wrong
-he works just enough to not get fired
- he just does not care

goal setting theory

People will be motivated to the extent that they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement.

components of goal setting theory

1. Goal specificity
2. Goal difficulty
3. Goal acceptance
4. Performance feedback

goal specificity

the extent to which goals are detailed, exact, and unambiguous

Specific goals, such as "I'm going to have a 3.0 average this semester," are more motivating than general goals, such as "I'm going to get better grades this semester."

goal difficulty

- challenging but achievable
( sales goal in hong kong impossible)

difficulty is the extent to which a goal is hard or challenging to accomplish. Difficult goals, such as "I'm going to have a 3.5 average and make the Dean's List this semester," are more motivating than easy goals, such as "I'm going to have a 2.0 average this semester."

goal acceptance

, is the extent to which people consciously understand and agree to goals

frequent performance feedback

is information about the quality or quantity of past performance and indicates whether progress is being made toward the accomplishment of a goal.

popular incentive compensation plans

Piece rate
Sales commission
Bonuses
Profit-sharing
Gainsharing
Stock options
Pay for knowledge (if you acquire new skills or degrees). Not to be confused with tuition reimbursement, which is a benefit

piece rate

employees paid according to how much output they produce (items)

sales commission

sales reps are paid a percentage of the earnings the company made from their sales

bonuses

cash awards given to employees who achieve specific performance objectives

profit sharing

the distribution to employees of a percentage of the company's profits

gainsharing

the distribution of savings or gains to groups of employees who reduced costs and increased measurable productivity

stock options

certain employees are given the right to buy stock at a future date for a discounted price
\-- in his experience, when he was able to cash in his stock options they were almost worthless

nonmonetary rewards

flexible workplace
thoughtfulness
work-life benefits
surroundings
skill building and educational opportunities
sabbaticals
trips

The most common non-monetary incentive is the flexible workplace
Companies need to offer employees a means of balancing their work and their personal lives
Companies need to create a work environment that is conducive to productivity
Companies can help employees build their skills by developing "shadowing" programs and offering tuition reimbursement
Offering sabbaticals to long-term employees gives people a change to recharge themselves

4 ways to fail

cash bonuses: good, but not that good

fear: mercurial personality doesnt lead to loyalty, creativity, or results

competition: the disaster of employee rankings

praise: just right

internal generator

What if we really could:
±
°Get the right people on the bus?
°
°Teach them the right skills and set them lose?
°
°Trust them to do what is in the best interest of the organization?
°
°Align their purpose to the organization's purpose?

\-- self motivation, have the right people, train them, and let them do their job

importance of purpose

±1903: U.S. government awards $70,000 grant ($1.7 million today) to Dr. Samuel Langley to develop a flying machine.

±Dr. Langley is the Director of the Smithsonian Institution, and one of the most renowned scientists of the time and had a team of scientists working for him.
±
± The Wright brothers owned a bicycle shop
±No college degrees
±Succeeded where Langley failed

difference? - internal generator

motivate so that

it doesnt have to be:

±Profit at any cost vs. an honest profit
±Treating others with respect is strong leadership, not weakness
±Ensuring that not just human rights, but human decency is your first filter

cost and demotivation of layoffs

Loss of unintended and most talented employees

Decrease in productivity due to fear and low morale

Severance packages

Counseling

Workplace violence

Fear of taking risks

Bad reputation and loss of good will

Customer defections and boycotts

Lawsuits
Loss of trust in Management

Laid off employees often band together and open a competitor company

intersection of leadership and motivation millenials video

companies must accommodate for millenials?
millenials need praise \-- they are struggling due to parenting, tec, environment

failed parenting strat- you can have anything you want in life
instead of turning to people when stressed, millenials turn to phones

job satisfaction and strength of relationships - slow ans meandering

corporate environments care more about numbers than ids

The greatest Strategy cannot get you to your destination...

Only people invested in its implementation can do that

How do you create the right climate?

What makes for a culture of accountability, innovation, achievement, efficiency and effectiveness?

organization's culture

-A system of shared values, beliefs and principles that impacts employees and their relationships

-An employee's success is dependent upon a clear understanding of the company's unique culture
\-
-Also called: corporate culture




"Culture isn't just one aspect of the game--it is the game. In the end, an organization is no more than the collective capacity of its people to create value."

what must be for a culture to exist?

-Shared by a majority of employees
\-
-Passed on from generation to generation
\-
-Shaped behaviors, perceptions and organizational climate

values

Values: basic beliefs that the group shares that define preferences, behaviors and what is right and wrong
(ie. inclusion, respect)

principles

rules or standards of good behavior ("what you just did is against our principles Smythers!!!")

strong culture

•In a strong culture employees enjoy going to work
•In a strong culture employees embrace responsibilities and follow established policies and procedures

weak culture

•In a weak culture employees work because they need money
•In a weak culture employees work for fear of management

•"But you know what Bob? that will make someone work just enough not to get fired..." Peter in interview with The Bobs, Office Space

how culture starts

-Selection
-Socialization
-Role Models

selection

•Founders/Top Management hire and keep only employees who think and feel as they do

socialization

•Founders/Top Management indoctrinate and socialize employees to their way of thinking and feeling

role models

The Founders and Top Managers' own behavior act as a role model that encourages employees to identify with them

culture and managers

•Cultures are difficult (for better or worse) for managers to change (since they are fairly stable over time)

• Selecting new hires that fit the culture is critical for motivation, commitment, job satisfaction and low turnover

cultural iceberg

observable elements of culture
\-- practices
--language
--symbols

unobservable elements
\-- norms
--values
--assumptions

Organizational Culture: "the way we do things around here" an invisible force that leads you into compliance with the organizational culture




Just as we are more comfortable and happier forming part of some groups and not others, Organizational culture can have a great impact on employees' sense of wellbeing and happiness, and it translates into retention or turnover.•

•Email culture or face to face? Fast pace or relaxed? Button down or casual?
•
•Which is most likely to follow rules, which is most likely to be free spirits?

time inc. vs warner bros

-cultures depend on regions

Time inc merges with warner bros east to west coast
- the culture there was very laid back
"we work really hard but we also do a lot of drugs here"

culture determines he poeple you attract and keep

•a healthy cutlure is notcable
\-- no company is purely one culture
•Time Inc. vs. Warner Bros.:
-Ethics
-Authority
-Rules
-Creativity

why is the right culture important

•A healthy corporate culture is noticeable

•Fosters trust and confidence in employees
•
•Is essential to a company's good performance
•
•They hire talented people and also retain them
•
•A company with high employee satisfaction performs well over the long-term

normative culture

•: Expectations and procedures are well defined, employees strictly follow policies and procedures
\-- sticm to what the organization has outlines.

pragmatic culture

•Emphasis is all on customers' satisfaction.
- "CUSTOMER IS KING"

EMployees are driven to client satisfaction as their main goal so employees to not feel compelled to follow a set of rules

academy culture

•: Training is the focus. Growth, learning and development are key. Background, experience, and education dictate how work is delegated. knowledge and training programs for existing employees are well invested in.

This culture fosters longer working relationships because they are continuously growing within

ex: schools, unis ,healthcare facilities

baseball team culture

•The culture recognizes the value of the employee and tips the scales of power in the direction of the employee.
\-- employee is vital to the organization

That could increase the risk of some taking advantage of that power.

ex: financial orgs, event management, advertising industry

club culture

•Culture of an exclusive club. Recruitment is thorough, searching for education, specialties and interests.

employees with most potential are more likely to be promoted, appraisals often used

fortress culture

•: Uncertainty and fear...about their job, career, etc. When the company underperforms employees suffer or are terminated.

ex: stock broking organizations

tough guy culture

•: Micromanaging, monitored work, frequent performance reviews.
- employees under close surveillance
- work is monitored and team leaders communicate with team members regarding needed improvements