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Essentials of Organizational Behaviour

Introduction

• Title: Essentials of Organizational Behaviour

• Edition: Third Canadian Edition

• Authors: Stephen P. Robbins, Timothy A. Judge, Katherine E. Breward

• Focus: Chapter 7 - Motivation

Learning Objectives

Key Areas of Focus

• 7.1 Describe the three key elements of motivation.

• 7.2 Evaluate the applicability of various motivation theories:

  • Hierarchy of needs theory

  • Two-factor theory

  • McClelland’s theory of needs

  • Self-determination theory

• 7.3 Explain the differences between:

  • Goal-setting theory

  • Equity theory

  • Expectancy theory

    • Application in workplace settings

• 7.4 Discuss organizational justice and the four types of justice that influence it.

• 7.5 Explain the job characteristics model and its effects on motivation through environmental changes.

• 7.6 Compare redesign methods for jobs and work arrangements to enhance employee motivation.

• 7.7 Explain measures for employee involvement and their motivational impact.

• 7.8 Evaluate various pay, benefit, and recognition programs and their contributions to employee motivation.

Defining Motivation

Core Concepts

• Definition: Processes that account for an individual’s intensity, direction, and persistence of effort toward achieving an organizational goal.

• Significance: A highly studied topic in Organizational Behaviour (O.B.).

• Statistics:

  • 60% of Canadian employees report lack of engagement.

  • 15% are actively disengaged.

  • Only 25% feel actively engaged.

Theories of Motivation

Overview of Theories

• Key Theories Explored:

  • Hierarchy of Needs Theory

  • Two-Factor Theory

  • McClelland’s Theory of Needs

  • Self-Determination Theory

Hierarchy of Needs Theory

• Conceptualized by A. H. Maslow, focusing on levels of human needs from basic physiological needs to self-actualization.

Two-Factor Theory

• Formulated by Frederick Herzberg:

  • Investigates what individuals want from their jobs.

  • Distinguishes between satisfaction (motivators) and dissatisfaction (hygiene factors).

McClelland’s Theory of Needs

• Three core needs:

  • Need for Achievement (nAch): Drive to excel.

  • Need for Power (nPow): Desire to influence others.

  • Need for Affiliation (nAff): Desire for close relationships.

• High achievers prefer tasks with personal responsibility, feedback, and manageable risks.

Self-Determination Theory

• Emphasizes the importance of intrinsic motivation.

• Highlights cognitive evaluation of extrinsic rewards affecting intrinsic satisfaction.

Contemporary Applied Theories of Motivation

Goal-Setting Theory

• Effective goals must be:

  • Specific

  • Difficult but attainable

  • Supported by feedback

Equity Theory

• Focuses on the perceived equity of input-outcome ratios among employees.

• Employee reactions to perceived inequities include changing inputs or outcomes, distorting perceptions, or leaving the organization.

Expectancy Theory

• Three main relationships:

  • Effort-performance: Belief that effort leads to success.

  • Performance-reward: Belief that success leads to reward.

  • Rewards-personal goals: Attractiveness of rewards based on personal goals.

Organizational Justice

Types of Justice

• Distributive Justice: Fairness of outcomes (e.g., pay raises).

• Procedural Justice: Fairness of processes leading to outcomes.

• Informational Justice: Transparency and explanations given to employees.

• Interpersonal Justice: Respectful treatment by supervisors.

Job Design and Motivation

Job Characteristics Model

• Components:

  • Skill variety

  • Task identity

  • Task significance

  • Autonomy

  • Feedback

• Effectiveness in motivating through structured job roles.

Job Redesign Strategies

• Job Rotation: Shifting employees among tasks.

• Job Enrichment: Increasing autonomy and responsibility reduces turnover.

• Alternative Work Arrangements: Implementing flexible schedules for diverse employee needs.

Employee Involvement

Participative Management

• Involves subordinates in decision-making processes.

Representative Participation

• Workers are represented in committees for decision-making.

Pay and Benefits as Motivators

Strategic Decisions in Compensation

• Determining pay structures based on:

  • Internal equity vs. external competitiveness.

  • Variable pay linked to individual performance.

Types of Pay Programs

• Piece-rate pay

• Merit-based pay

• Bonuses

• Profit-sharing plans

• Employee stock ownership plans (ESOPs)

Summary

Key Points

• Motivation is crucial for organizational performance.

• Recognition of individual differences enhances motivation potential.

• Understanding and implementing various motivation theories assists managers in improving organizational climate.

Implications for Managers

Best Practices

• Understanding employee preferences and designing jobs accordingly.

• Utilizing goals and feedback effectively for performance.

• Ensure fairness and equity in reward systems.

• Emphasize both extrinsic and intrinsic motivators.

Systems and Processes

• Regularly assess equity in pay and rewards.

• Promote a culture of recognition and respect for individual contributions.