foundations of employee motivation chapter 5. 5-2 copyright © 2013 mcgraw-hill australia pty ltd...

Foundations of Employee Motivation

Chapter 5

5-2Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Learning Objectives

5.1 Define employee engagement

5.2 Explain the role of human drives and emotions in employee motivation and behaviour

5.3 Summarise Maslow’s needs hierarchy, McClelland’s learned needs theory, and four-drive theory and discuss their implications for motivating employees

5.4 Discuss expectancy theory model, including its practical implications

5-3Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Learning Objectives continued

5.5 Outline organisational behaviour modification (OB Mod) and social cognitive theory, and explain their relevance to employee motivation

5.6 Describe the characteristics of effective goal setting and feedback

5.7 Summarise equity theory and describe ways to improve procedural justice

5-4Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Standard Chartered Bank

• Standard Chartered Bank has improved employee engagement and motivation through goal setting, strengths-based feedback, employee development and other practices

5-5Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Motivation Defined

• The forces within a person that affect the direction, intensity and persistence of voluntary behaviour

• Exerting particular effort level (intensity), for a certain amount of time (persistence), toward a particular goal (direction)

5-6Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Employee Engagement• Individual’s emotional and

cognitive (logical) motivation, particularly a focused, intense, persistent and purposive effort toward work-related goals

• High absorption in the work

• High self-efficacy: believe you have the ability, role clarity and resources to get the job done

5-7Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Drives and Needs• Drives (primary needs)

– Hardwired brain characteristics (neural states) that energise individuals to maintain balance by correcting deficiencies

– Prime movers of behaviour by activating emotions

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Drives and Needs continued

• Needs– Goal-directed forces that people experience. – Drive-generated emotions directed toward goals– Goals formed by self-concept, social norms, and experience

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Maslow’s Needs Hierarchy Theory

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Maslow’s Needs Hierarchy Theory continued• Seven categories—five in a hierarchy—capture most

needs

• Lowest unmet need is strongest. When satisfied, next higher need becomes primary motivator

• Self-actualisation—a growth need because people desire more rather than less of it when satisfied

5-11Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

What’s Wrong with Needs Hierarchy Models?• Maslow’s theory lacks empirical support

– People have different hierarchies– Needs change more rapidly than Maslow stated

• Hierarchy models wrongly assume that everyone has the same (universal) needs hierarchy

• Instead, needs hierarchies are shaped by person’s own values and self-concept

5-12Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

What Maslow Contributed to Motivation Theory• Holistic perspective

– Integrative view of needs

• Humanistic perspective– Influence of social dynamics, not just instinct

• Positive perspective– Pay attention to strengths (growth needs), not just

deficiencies

5-13Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Learned Needs Theory• Needs are amplified or suppressed through

self-concept, social norms and past experience

• Therefore, needs can be ‘learned’– Strengthened through reinforcement, learning and

social conditions

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Three Learned Needs• Need for achievement

– Need to reach goals, take responsibility – Want reasonably challenging goals

• Need for affiliation– Desire to seek approval, conform to others’

wishes, avoid conflict– Effective executives have lower need for social

approval

• Need for power– Desire to control one’s environment– Personalised versus socialised power

5-15Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Four-Drive Theory

Drive to Bond

Drive to Comprehend

• Drive to form relationships and social commitments• Basis of social identity

• Drive to satisfy curiosity• To understand environment and self

Drive to Defend• Need to protect ourselves• Reactive (not proactive) drive• Basis of fight or flight

Drive to Acquire• Drive to take/keep objects and experiences• Basis of hierarchy and status

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How Four Drives Affect Motivation• Four drives determine which emotions are

automatically tagged to incoming information• Drives generate independent and often

competing emotions that demand our attention

• Mental skill set relies on social norms, personal values and experience to transform drive-based emotions into goal-directed choice and effort

5-17Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Four-Drive Theory of Motivation

Social norms, personal values and experience transform drive-based emotions into goal-directed choice and effort

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Implications of Four-Drive Theory• Provide a balanced opportunity for

employees to fulfil all four drives– Employees continually seek fulfilment of drives– Avoid having conditions support one drive more

than others

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Expectancy Theory of Motivation

5-20Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Increasing E–to–P and P–to–O Expectancies• Increasing E–to–P Expectancies

– Develop employee competencies– Match employee competencies to jobs– Provide role clarity and sufficient resources– Provide behavioural modelling

• Increasing P–to–O Expectancies– Measure performance accurately– Increase rewards with desired outcomes– Explain how rewards are linked to performance

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Increasing Outcome Valences• Ensure that rewards are valued• Individualise rewards• Minimise countervalent outcomes

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A-B-Cs of Behaviour Modification

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Four OB Mod Consequences• Positive reinforcement: consequence that,

when introduced, increases/maintains the target behaviour

• Punishment: consequence that decreases the target behaviour

• Negative reinforcement: consequence that, when removed, increases/maintains target behaviour

• Extinction: when no consequence occurs, resulting in less of the target behaviour

5-24Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Reinforcing the Healthy Walk

• The British municipality of Stoke-on-Trent, Staffordshire, issued pedometers to its staff and encouraged them to walk more each day. The pedometers provide instant feedback and positive reinforcement to motivate longer walks. Some organisations also reinforce walking with financial rewards

5-25Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Behaviour Modification in Practice

• Behaviour modification applications:

– Every day to influence behaviour of others

– Company programs: attendance, safety, etc.

• Behaviour modification problems:

– Reward inflation

– Variable ratio schedule viewed as gambling

– Ignores relevance of cognitive processes in motivation and learning

5-26Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Social Cognitive Theory• Learning behaviour outcomes

– Observing consequences that others experience– Anticipating consequences in other situations

• Behaviour modelling– Observing and modelling behaviour of others

• Self-regulation– Intentional, purposive action: develop goals,

achievement standards, action plans– Form expectancies (anticipate consequences)

from others, not just from own experiences– Reinforce own behaviour (self-reinforcement)

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Goal Setting• The process of motivating employees and

clarifying their role perceptions by establishing performance objectives

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Effective Goal Setting Characteristics

Specific—what, how, where, when and with whom the task needs to be accomplished

Measurable—how much, how well, at what cost

Achievable—challenging, yet accepted (E–to–P)

Relevant—within employee’s control

Time-framed—due date and when assessed

Exciting—employee commitment, not just compliance

Reviewed—feedback and recognition on goal progress and accomplishment

5-29Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Balanced Scorecard• Organisational-level goal setting and

feedback• Attempts to include measurable performance

goals related to financial, customer, internal and learning/growth (i.e., human capital) processes

• Usually includes several goals within each process

5-30Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Characteristics of Effective Feedback1. Specific—connected to goal details

2. Relevant—relates to person’s behaviour

3. Timely—to improve link from behaviour to outcomes

4. Credible—from trustworthy source

5. Sufficiently frequent– Employee’s knowledge and/or experience– Task cycle

5-31Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Strengths-Based Coaching FeedbackMaximising the person’s potential by focusing on their strengths rather than weaknesses

Motivational because:•People inherently seek feedback about their strengths, not their flaws•Person’s interests, preferences and competencies stabilise over time

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Multisource Feedback• Received from a full circle of people around

the employee• Provides more complete and accurate

information• Several challenges

– Expensive and time-consuming– Ambiguous and conflicting feedback– Inflated rather than accurate feedback– Stronger emotional reaction to multiple feedback

5-33Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Organisational Justice

Distributive justice• Perceived fairness in outcomes we receive

relative to our contributions and the outcomes and contributions of others

Procedural justice• Perceived fairness of the procedures used to

decide the distribution of resources

5-34Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Equity Theory

5-35Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Elements of Equity Theory• Outcome/input ratio

– Inputs: what employee contributes (e.g. skill)– Outcomes: what employee receives (e.g. pay)

• Comparison other– Person/people against whom we compare our

ratio– Not easily identifiable

• Equity evaluation– Compare outcome/input ratio with the comparison

other

5-36Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Correcting Inequity Tension

Reduce our inputs Less organisational citizenship

Increase our outcomes Ask for pay increase

Increase other’s inputs Ask co-worker to work harder

Reduce other’s outputsAsk boss to stop giving preferred treatment to co-worker

Change our perceptionsStart thinking that co-worker’s perks aren’t really so valuable

Change comparison otherCompare self to someone closer to your situation

Leave the field Quit job

Actions to correctunder-reward inequity Example

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Procedural Justice• Perceived fairness of procedures used to

decide the distribution of resources• Greater procedural fairness with:

– Voice– Unbiased decision maker – Decision based on all information– Apply existing policies consistently– Decision maker listened to all sides– Those who complain are treated respectfully – Those who complain are given full explanation

Foundations of Employee Motivation

Chapter 5