MGB 301: Organizational Behavior - Chapter 7 & 8 Notes

Why is Motivation Important?

• Motivation is crucial for individual and organizational success.
• Understanding and applying different approaches to motivating behavior is key.
• Not everyone is motivated by the same things.

What is Motivation?

• Definition: A set of energetic forces originating within and outside an employee to initiate work-related effort.
• It's the process that accounts for intensity, direction, and persistence of effort toward attaining a goal.
  • Direction: Where effort is channeled.
  • Intensity: How hard a person tries.
  • Persistence: How long effort is maintained.

Industry Findings on Motivation

• Understanding motivation requires considering individual job design, incentives and rewards, and organizational systems.
• Most employees could give 15-20% more (or less) effort.
• The top 15% of workers produce 20-50% more output.

Key Questions About Motivation

• General: What motivates people?
• Specific: What motivates a particular employee?

Motivation Theories

• Early Theories:
  • Maslow’s Hierarchy of Needs
  • McGregor’s Theory X and Theory Y
  • Herzberg’s Motivation-Hygiene Theory
  • McClelland’s Theory of Needs
• Contemporary Theories:
  • Goal-Setting Theory
  • Reinforcement Theory
  • Equity Theory
  • Expectancy Theory

1. Maslow’s Hierarchy of Needs

• Pyramid structure:
  • Physiological (base)
  • Safety
  • Social
  • Esteem
  • Self-actualization (top)
• Individuals must satisfy lower-level needs before moving to the next higher level.
• Progression up the pyramid is essential.
  • Movement Up the Pyramid.

2. McGregor’s Theory X and Theory Y

• Theory X:
  • Workers dislike work.
  • Must be threatened with punishment.
  • Avoid responsibilities.
  • Seek formal direction.
  • Require security.
• Theory Y:
  • View work as natural.
  • Self-directed.
  • Exercise self-control.
  • Accept responsibility.
  • Seek responsibility.

3. Herzberg’s Two-Factor Theory (Motivation-Hygiene Theory)

• Two continua: Job Satisfaction and Job Dissatisfaction (not opposites)
• Hygiene factors (extrinsic):
  • Affect job dissatisfaction.
  • Examples: Quality of supervision, pay, company policies, physical working conditions, relations with others, job security.
• Motivator factors (intrinsic):
  • Affect job satisfaction.
  • Examples: Promotional opportunities, opportunities for personal growth, recognition, responsibility, achievement.

4. McClelland’s Theory of Needs

• Three major needs:
  • Need for achievement (nAch): The drive to excel, achieve in relation to standards, strive to succeed.
  • Need for power (nPow): The need to make others behave in a way they wouldn't otherwise.
  • Need for affiliation (nAff): The desire for friendly and close personal relationships.
• Individuals have different levels of needs in each area, driving their behavior.

5. Goal-Setting Theory

• Goals lead to performance, with acceptance of goals being a key moderator.
• Goals ? Acceptance of goals ? Performance

6. Reinforcement Theory

• Reinforcement conditions behavior.
• Behavior is environmentally caused (at odds with goal-setting theory, which posits internal states).
• People exert more effort on tasks that are reinforced.

7. Equity Theory

• Employees weigh inputs (what they put into a job) against outcomes (what they get from it).
• Individuals are concerned with social comparisons.
• Perceived inequity creates tension, providing a basis for motivation.
• Ratio Comparisons:
  • O/IA < O/IB: Inequity due to being underrewarded.
  • O/IA = O/IB: Equity.
  • O/IA > O/IB: Inequity due to being overrewarded.
  • Where O/IA represents the employee, and O/IB represents relevant others.

8. Expectancy Theory

• The strength of a person’s motivation depends on:
  • Effort-performance linkage (Expectancy).
  • Performance-reward linkage (Instrumentality).
  • Attractiveness (Valence).
• Key Relationships:
  • Effort → Performance
  • Performance → Rewards
  • Rewards → Personal Goals

Chapter 8: Motivation - From Concepts to Applications

• Performance = Ability x Motivation
• Review basic motivation concepts and applications.
• Be flexible in designing work schedules, compensation plans, benefits, and physical work settings to reflect employee needs.

Applications of Motivation Theories

• Job Design
• Goal-setting Theory – Management by Objectives (MBO)
• Reinforcement Theory – Employee Recognition
• Expectancy Theory – Variable Pay programs

Job Design Theory

• Job Characteristics Model: Identifies 5 core job characteristics:
  1. Skill variety
  2. Task identity
  3. Task significance
  4. Autonomy
  5. Feedback
• These influence personal and work outcomes.

Examples of High and Low Job Characteristics

• Skill Variety:
  • High: Garage owner-operator who handles electrical repair, engine rebuilds, body work, and customer interaction.
  • Low: Bodyshop worker who sprays paint all day.
• Task Identity:
  • High: Cabinetmaker who designs, selects wood, builds, and finishes furniture.
  • Low: Furniture factory worker operating a lathe to make table legs.
• Task Significance:
  • High: Nursing the sick in a hospital intensive care unit.
  • Low: Sweeping hospital floors.
• Autonomy:
  • High: Telephone installer who schedules their work and chooses techniques.
  • Low: Telephone operator handling calls by a specified procedure.
• Feedback:
  • High: Electronics factory worker assembles and tests a radio.
  • Low: Electronics factory worker assembles a radio, which is then tested by quality control.

Computing a Motivating Potential Score (MPS)

• People working on jobs with high core dimensions are generally more motivated, satisfied, and productive.
• Job dimensions influence personal and work outcomes through psychological states.

Job Design and Scheduling

• Job Rotation: Periodic shifting of a worker from one task to another.
• Job Enlargement: Horizontal expansion of jobs.
• Job Enrichment: Vertical expansion of jobs.

Alternative Work Arrangements

• Flextime
• Job Sharing
• Telecommuting

Goal Setting Theory Applied: Management by Objectives (MBO)

• Four Ingredients:
  • Goal specificity
  • Participative decision making
  • Explicit time period
  • Performance feedback
• Popular technique

Cascading of Objectives

• Overall organizational objectives cascade down to divisional, departmental, and individual objectives.

Reinforcement Theory Applied: Employee Recognition Programs

• Wide spectrum, from informal "thank you" to publicized programs.
• Low-cost and popular.

Theory Y Applied: Employee Involvement Programs

• Participative management
• Representative participation
• Employee stock ownership plans

Expectancy Theory Applied: Variable-Pay Programs

• A portion of pay is based on individual or organizational performance.
  • Includes piece-rate pay plans, profit-sharing plans, and Employee Stock Ownership Plans (ESOP).

Application of Motivation Theories: Skill-Based Pay Plan

• Sets pay levels based on the number of skills employees have or jobs they can do.
• Uses:
  • Maslow’s Hierarchy of Needs
  • McClelland’s Theory of Needs
  • Reinforcement Theory
  • Equity Theory