Study Guide: Chapter 12 - Motivating Employees

1. Motivation: What It Is and Why It Matters

• Definition: Psychological processes driving behavior.

• Importance:

  • Encourages joining, staying with, showing up, and being engaged at work.

  • Enhances organizational citizenship behaviors.

  • Money isn’t always the most effective motivator.

2. Rewards

• Extrinsic Rewards: Payoff from others for performing a task.

  • Easy to implement, less impactful for complex tasks.

• Intrinsic Rewards: Satisfaction from performing the task itself.

  • Driven by Autonomy, Mastery, and Purpose.

  • More powerful for cognitive and fulfilling tasks.

3. Theories of Motivation

A. Needs Theories

1. Maslow’s Hierarchy of Needs:

   • Five levels: physiological, safety, social, esteem, and self-actualization.

   • Example: CEO of JDV motivates stakeholders using self-actualization.

2. McClelland’s Acquired Needs Theory:

   • Achievement: Desire to excel.

   • Affiliation: Desire for warm relationships.

   • Power: Desire for responsibility/control.

3. Deci & Ryan’s Self-Determination Theory:

   • Competence: Need for mastery.

   • Autonomy: Freedom in decisions.

   • Relatedness: Belonging and attachment.

B. Satisfaction Perspectives

1. Herzberg’s Two-Factor Theory:

   • Hygiene Factors: Reduce dissatisfaction (e.g., pay, conditions).

   • Motivating Factors: Increase satisfaction (e.g., recognition, growth).

C. Process Perspectives

1. Equity Theory:

   • Focus on fairness perceptions compared to others.

   • Key takeaway: Employee perceptions are crucial.

2. Expectancy Theory:

   • Valence: Value of the outcome.

   • Expectancy: Belief that effort leads to performance.

   • Instrumentality: Belief that performance leads to rewards.

3. Goal-Setting Theory:

   • Goals should be specific, challenging, and linked to plans.

   • Feedback enhances effectiveness.

4. Reinforcement Perspectives

• Reinforcement Theory:

  • Encourages positive behavior and discourages negative behavior.

  • Four types:

    • Positive reinforcement.

    • Negative reinforcement.

    • Punishment.

    • Extinction.

Examples of Positive Reinforcement

1. Monetary Incentives:

   • Sales commissions, bonuses, profit-sharing.

   • Limited impact on complex tasks.

2. Nonmonetary Incentives:

   • Flexible work, skill-building, thoughtful workplace benefits.

   • Appeals to intrinsic motivation.

5. Key Takeaways

• Intrinsic motivation is more effective for complex, cognitive tasks.

• Align incentives with the nature of the task (simple vs. complex).

• Combine intrinsic motivators (autonomy, mastery, purpose) with hygiene factors.

6. Reflection

• What surprised or stood out? Reflect on interesting insights or practical examples.