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Factors of Job Performance
Motivation, ability, environment influences over employee performance
Motivation
The desire to achieve a goal or a certain performance levle, leading to goal-directed behavior
Ability
Having the skills and knowledge required to perform the job
Environmental
External factors that affect performance
Intrinsic Motivation
Doing an activity because it is enjoyable and absent of rewards
Extrinsic Motivation
Doing an activity because it is related to desirable outcomes such as financial rewards, status, or approval from others
Need-Based Theories of Motivation
Main Idea: People are motivated by deficiencies in their needs. When a need is not met, individuals seek to fulfill it.
Key Theories:
Maslow’s Hierarchy of Needs: A five-tier model of human needs, ranging from physiological needs to self-actualization.
Herzberg’s Two-Factor Theory: Differentiates between hygiene factors (which prevent dissatisfaction) and motivators (which drive satisfaction).
ERG Theory: Groups needs into Existence, Relatedness, and Growth categories, allowing for regression if higher needs aren’t met.
Acquired Needs Theory: Suggests that needs (achievement, affiliation, power) are learned based on experiences.
Maslow’s Hierarchy of Needs
Human beings have needs that are hierarchically ranked
Not the strongest theory (not much evidence to support it; it doesn’t stand true in different cultural contexts) but one that is logical enough to be useful as a general framework to understand human needs and motivation
Lower-level needs (bottom three)
Higher level needs (top two)
Physiological Needs
air, food, water
Safety and Security
security of body, employment, resources, morality, family, health, property
Love and belonging
friendship, family, intimacy, sense of connection
Self-esteem
Self-esteem, confidence, achievement, respect of others, respect by others
Self-actualization
Morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance of facts
ERG
Developed by Clayton Alderfer, is a modification of Maslow’s hierarchy of needs."
Existence
Growth
Relatedness
Characteristics
Does not rank needs
frustration regression
hypothesis suggesting that individuals who are frustrated in their attempts to satisfy one
need may regress to another.
satisfaction progression
moving up to the higher-level needs based on satisfied needs
Existence
A need corresponding to Maslow’s physiological and safety needs
Relatedness
A need corresponding to Maslow’s social needs.
Growth
A need referring to Maslow’s esteem and self-actualization.
Two Factor Theory/Herzberg’s Theory
Asking individuals what satisfies and dissatisfies them. When we have hygiene factors (money, safe environment, secure relationships) we can foxus on what really make us click (motivators)
“hygiene” factors
motivators
Example: Salary increase could lead to low job dissatisfaction, while opportunities to grow leads to high job satisfaction
Work was the basis to identify needs as either motivators or hygiene factors (hence the name of the theory is two-factory theory)
hygiene factors
factors that are extrinsic to the job, such as company policies and working conditions
Company policy, Supervision and relationships, Working conditions, Salary, Security
too basic to be motivators (lower level needs)
motivators
factors that are intrinsic to the job, such as achievement and interesting work
Achievement, Recognition, Interesting work, Increased responsibility, Advancement and growth
self actualiziation
Acquired-Needs Theory
David McClelland's acquired-needs theory is the one that has received the greatest amount of support. According to this theory, individuals acquire three types of needs as a result of their life experiences.
Achievement
Affiliation
Power
Thematic Apperception Test (TAT)
A test that assesses a person’s dominant needs.The exercise we worked on where we looked at an image and came up with a story; the idea is that the story that we come up with sheds light on what our needs are/currently are)
need for achievement
Having a strong need to be successful.
need for affiliation
want to be liked and accepted by others.
need for power
want to influence others and control their environment.
Process-Based Theories
Process theories attempt to explain the thought processes of individuals who demonstrate motivated behavior.
Equity theory
Expectancy theory
Reinforcement theory
Equity Theory
individuals are motivated by a sense of fairness in their interactions.
we believe that the input-to-outcome ratio we are bringing into
the situation is similar to the input-to-outcome ratio of a comparison person, or a referent.
referent
A person we compare ourselves to in equity theory. Comparison with other people and being motivated to take action accordingly
Person Referent Other
Outcomes = Outcomes
Inputs Inputs
Inputs
contributions people feel they are making to the environment
Output
the perceived rewards someone can receive from the situation.
Potential Responses to Inequity
Distort perceptions
Changing one’s thinking to believe that the referent actually is more skilled than perceptions previously thought
Increase referents inputs
Encouraging the referent to work harder
Reduce own input
Deliberately putting forth less effort at work. Reducing the quality of one’s work
Increase own outcomes
Negotiating a raise for oneself or using unethical ways of increasing rewards
such as stealing from the company
Change referent
Comparing oneself to someone who is worse off
Leave the situation
Quitting one’s job
Seek legal action
Suing the company or filing a complaint if the unfairness in question is under
legal protection
Overpayment Inequity
research does not support equity theory's predictions with respect to people who are overpaid
equity theory proposed
that over-rewarded individuals would experience guilt and would increase their effort to restore
perceptions of equity.
Individual Differences in Reactions to Inequity
equity sensitivity
benevolents
entitleds
equity sensitivity
A personality trait that explains different reactions to inequity.
benevolents
Individuals who give without waiting to receive much in return.
entitleds
Individuals who expect to receive a lot without giving much in return.
Fairness Beyond Equity: Procedural and Interactional Justice
Equity theory deals with outcome fairness, and therefore it is considered to be a distributive justice theory.
distributive justice
The degree to which the outcomes received from the organization are fair.
procedural justice
The degree to which fair decision-making
procedures are used to arrive at a decision.
interactional justice
The degree to which people are treated with
respect, kindness, and dignity in interpersonal interactions.
Expectancy Theory
individual motivation to put forth more or less effort is determined by a rational calculation in which individuals evaluate their situation. Effort performance linkeage (expectancy), performance-outcome linkage (instrumentality), and how important is the reward for you (valence)
All three determine whether you will put effort into any task
expectancy (effort) → instrumentality (performance) → valence (rewards)
expectancy
Whether the person believes that high levels of effort will lead to outcomes of interest such as performance or success.
instrumentality
the degree to which the person believes that performance is related to secondary outcomes such as rewards.
valence
The value of the rewards awaiting the person as a result of performance.
Ways in Which Managers Can Influence Expectancy, Instrumentality, and Valence
Expectancy
Make sure employees have proper skills, abilities, and knowledge
Ensure that the environment facilities performance
Provide encouragement to make people believe that their effort makes a difference
Instrumentality
Reward employee performance
Inform people in advance about the rewards
Try to eliminate non-performance influence over rewards
Valence
Find rewards that are desirable to employees
Make sure that the rewards are reviewed as fair
Give employees choice over rewards
Reinforcement Theory
behavior is a function of its outcomes.
Reinforcement Interventions
Reinforcement theory describes four interventions to modify employee behavior.
Positive Reinforcement
Positive behavior followed by positive consequences (Manager praises the employee)
Negative Reinforcement
Positive behavior followed by removal of negative consequences (Manager stops nagging the employee)
Punishment
Negative behavior followed by negative consequences (Manager demotes the employee)
Extinction
The removal of rewards following negative behavior.
Reinforcement Schedules
researchers have focused their attention on schedules of reinforcement as well
Continuous Schedule
When reinforcers follow all instances of positive behavior.
Wise parents stock up on stickers and other rewards to utilize this schedule when potty training their children
Fixed-Interval Schedules
Fixed-interval schedules involve providing rewards after a specified amount of time.
Estee lauder was the first company to provide a “gift with purchase” certain times of the year to increase cosmetic sales
Fixed-Ratio Schedules
Rewarding behavior after a set number of occurrences.
Some hair salons hoping to keep regular customers often give away a free haircut after every 10th haircut
Variable Ratio
Providing the reinforcement in a random
pattern.
OB Mod
A systematic application of reinforcement theory to modify employee behaviors in the workplace.
Stages of Organizational Behavior Modification
Identify behavior to be modified
Measure the baseline level
Analyze its antecedents and outcomes
Intervene
Evaluate and Maintain
Motivation and Ethics
Motivations for Unethical Behavior
Employees may act unethically to satisfy personal needs.
Reinforcement Theory & Ethical Behavior
Ethical and unethical behaviors are learned based on consequences.
Organizational Influence on Unethical Behavior
Employees may receive positive consequences (e.g., promotions, bonuses) despite unethical actions.
Solutions to Reduce Unethical Behavior
Remove rewards for unethical actions.
Why can algorithmic decision-making lead to unfairness, and how can technology be used positively in the workplace?
Unfairness in Algorithms:
Algorithms learn from past data, which can reinforce biases.
Example: In 2020, the UK A-level grading algorithm penalized students from historically underperforming schools while benefiting private school students, leading to protests and policy reversal.
Automated decisions must be carefully examined for systemic bias.
Positive Use of Technology:
Organizations use gamification to boost motivation and engagement.
Example: PricewaterhouseCoopers (PwC) uses an app-based game to teach interns digital skills through competition and rewards.
How does culture influence employee motivation and perceptions of fairness?
Motivation is culturally bound –
Maslow’s hierarchy may differ across cultures – Financial satisfaction is a stronger motivator in developing nations, while esteem needs matter more in industrialized nations.
Cultural differences in motivation:
High-performance cultures (U.S., Canada) → Strong need for achievement.
High-humane orientation (Thailand, Philippines) → Strong need for affiliation.
High power-distance cultures (Asia, Middle East) → Strong need for power.
Perceptions of fairness vary by culture, affecting how employees react to workplace justice.
Learning-Based Theories
Main Idea: Motivation is influenced by learning through conditioning and reinforcement.
Classical Conditioning: Associating an involuntary response with a stimulus (e.g., Pavlov’s dogs).
Operant Conditioning (Reinforcement Theory): Behavior is shaped by consequences, including positive and negative reinforcement.
Classical Conditioning
A simple form of learning that links a conditioned response with an unconditioned stimulus
Operant conditioning (Skinner)
Reinforcement theory and learning
Based on the idea that behavior is a function of its consequences
What is positive reinforcement vs negative reinforcement
Make sure you reinforce when the behavior happens (contigent reinforcement) and in a timely or consistent manner (law of immediate reinforcement)