foundations of employee motivation 1 mcshane-olekalns-travaglione ob pacific rim 3e © 2010 the...

Foundations of Employee Motivation

1McShane-Olekalns-Travaglione OB Pacific Rim 3e

© 2010 The McGraw-Hill Companies, Inc. All rights reserved

Employee Motivation and Engagement at Standard Chartered

McShane-Olekalns-Travaglione OB Pacific Rim 3e


2

Through goal setting, strengths-based feedback, community involvement, and fun activities in the workplace, Standard Chartered Bank has significantly improved employee engagement and motivation throughout its operations, most of which are in Asia and India.

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)



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Employee Engagement

Emotional and cognitive

motivation, self-efficacy to

perform the job, a clear

understanding of one’s role in

the organisation’s vision and a

belief that one has the resources

to perform the job.



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Drives and Needs

Drives (primary needs, fundamental needs, innate motives)• Neural states that energise individuals to correct deficiencies

or maintain an internal equilibrium• Prime movers of behaviour by activating emotions

Self-concept, social norms,and past experience

Drives(primary needs)

and emotionsNeeds

Decisions and behaviour

5 © 2010 The McGraw-Hill Companies, Inc. All rights reserved


Drives and Needs

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



Self-concept, social norms,and past experience

Drives(primary needs)

and emotionsNeeds

Decisions and behaviour

Self-Self-actualisatiactualisati

onon

PhysiologicalPhysiological

SafetySafety

BelongingnessBelongingness

EsteemEsteem

Seven categories capture most needs

Five categories placed in a hierarchy

Need toNeed toknowknow

Need for Need for beautybeauty

Maslow’s Needs Hierarchy Theory



Maslow’s Needs Hierarchy Theory

Lowest unmet need has strongest effect

When lower need is satisfied, next higher need becomes the primary motivator

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

Self-Self-actual-actual-isationisation


SafetySafety


EsteemEsteem





Evaluating Maslow’s Theory

Lack of support for theory

People have different hierarchies – don’t progress through needs in the same order

Needs change more rapidly than Maslow stated

Self-Self-actual-actual-isationisation


SafetySafety


EsteemEsteem





What Maslow Contributed to Motivation Theory

More holistic• Integrative view of needs

More humanistic• Influence of social

dynamics, not just instinct

More affirmational• Pay attention to strengths,

not just deficiencies



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Abraham Maslow

What’s Wrong with Needs Hierarchy Models?

Wrongly assume that everyone has the same (universal) needs hierarchy

Instead, it is likely that each person has a unique needs hierarchy• Shaped by our self-concept –

values and social identity



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Abraham Maslow

Learned Needs Theory

Needs are amplified or suppressed through self-concept, social norms, and past experience

Therefore, needs can be ‘learned’ (ie. strengthened or weakened through training)



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



Four-Drive Theory

Drive to bondDrive to bond

Drive to learnDrive to learn

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

• Drive to satisfy curiosity and resolve conflicting information

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

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



Features of Four Drives

Innate and hardwired• Everyone has them

Independent of each other• No hierarchy of drives

Complete set• No drives are excluded from the model



How Four Drives Affect Motivation

1. Four drives determine which emotions are automatically tagged to incoming information

2. Drives generate independent and often competing emotions that demand our attention

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



Four Drive Theory of Motivation

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

Drive to acquire

Social norms

Drive to bond

Drive to learn

Drive to defend

Personal values

Past experience

Mental skill set resolves competing drive demandsMental skill set resolves

competing drive demandsGoal-directed

choice and effortGoal-directed

choice and effort



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



E-to-Pexpectancy

P-to-Oexpectancy

Outcomes& valences

Outcome 1Outcome 1+ or -+ or -

EffortEffort PerformancePerformance



Expectancy Theory of Motivation



Increasing E-to-P and P-to-O Expectancies

Increasing E-to-P Expectancies• Assuring employees they have competencies• Person-job matching • Provide role clarification and sufficient resources• Behavioural modelling

Increasing P-to-O Expectancies• Measure performance accurately• More rewards for good performance• Explain how rewards are linked to performance



Increasing Outcome Valences

Ensure that rewards are valued

Individualise rewards

Minimise countervalent outcomes



Goal Setting

The process of motivating

employees and clarifying their

role perceptions by

establishing performance

objectives.



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Effective Goal Setting Characteristics

1. Specific – measureable change within a time frame

2. Relevant – within employee’s control and responsibilities

3. Challenging – raise level of effort

4. Accepted (commitment) – motivated to accomplish the goal

5. Participative (sometimes) – improves acceptance and goal quality

6. Feedback – information available about progress toward goal



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Characteristics of Effective Feedback

1. Specific – connected to goal details

2. Relevant – relates to person’s behaviour

3. Timely – to improve link from behaviour to outcomes

4. Sufficiently frequent• Employee’s knowledge/experience• Task cycle

5. Credible – trustworthy source



Trouble Keeping Score in NZ Hospitals

The New Zealand government

introduced a balanced

scorecard system to measure

and improve performance of

public hospitals, but many

public health staff experienced

philosophical and practical

problems with this goal setting

and feedback process.



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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



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Feedback Through Strengths-Based Coaching

Maximising 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



Evaluating Goal Setting and Feedback

Goal setting has high validity and usefulness Goal setting/feedback limitations:

• Focuses employees on measurable performance• Motivates employees to set easy goals (when tied to

pay)• Goal setting interferes with learning process in new,

complex jobs



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Keeping Pay Equitable at Costco

Costco Wholesale CEO Jim Sinegal

(see photo) thinks the large wage

gap between many executives and

employees is blatantly unfair.

“Having an individual who is making

100 or 200 or 300 times more than

the average person working on the

floor is wrong,” says Sinegal, whose

salary and bonus are a much

smaller multiple of what his staff

earn.

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



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Elements of Equity Theory

Outcome/input ratio • inputs – what employee contributes (eg. skill)• outcomes – what employee receives (eg. pay)

Comparison other• person/people against whom we compare our ratio• not easily identifiable

Equity evaluation• compare outcome/input ratio with the comparison

other



Correcting Inequity Feelings

Reduce our inputs Less organisational citizenship

Increase our outcomes Ask for pay increase

Increase others’ inputs Ask coworker to work harder

Reduce others’ outputsAsk boss to stop giving others preferred treatment

Change our perceptionsStart thinking that others’ perks aren’t really so valuable

Change comparison otherCompare self to someone closer to your situation

Leave the field Quit job

Actions to correct inequity Example



Equity Sensitivity

Outcome/input preferences and reaction to various outcome/input ratios

Benevolents• tolerant of being underrewarded

Equity Sensitives• want ratio to be equal to the comparison other

Entitleds• prefer proportionately more than others



Evaluating Equity Theory

Good at predicting situations involving unfair distribution of pay/rewards

Difficult to put into practice• Doesn’t identify comparison other• Doesn’t indicate relevant inputs or outcomes

Equity theory explains only some feelings of fairness • Procedural justice is as important as distributive

justice



Procedural Justice

Perceived fairness of procedures used to decide the distribution of resources

Higher procedural fairness with:• Voice• Unbiased decision maker • Decision based on all information• Existing policies applied consistently• Decision maker listens to all sides• Those who complain are treated respectfully • Those who complain are given full explanation



Foundations of Employee Motivation

37McShane-Olekalns-Travaglione OB Pacific Rim 3e


foundations of employee motivation 1 mcshane-olekalns-travaglione ob pacific rim 3e © 2010 the...

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