Class 3 - Motivation

Question 1

What is Motivation?

Answer 1

The processes that accounts for an individual’s intensity, direction, and persistence of effort toward attaining an organizational goal.
Intensity – the amount of effort put forth to meet the goal
Direction – efforts are channeled toward organizational goals
Persistence – how long the effort is maintained

Question 2

Theories of Motivation

Answer 2

*Early Theories
Maslow’s Hierarchy of Needs Theory
McGregor’s Theory X and Theory Y
Herzberg’s Two-Factor (Motivation-Hygiene) Theory
McClelland’s Theory of Needs (Three Needs Theory)
*Contemporary Theories
Cognitive Evaluation Theory
Goal-Setting Theory
Management by Objectives
Self-Efficacy Theory
Equity Theory
Expectancy Theory

Question 3

Dan Pink video

Answer 3

Mechanical Skill Work, L, M, High rewards based on performance worked
Cognitive Skill: Larger reward led to poor performance
–pay people enough so they are not thinking about money, instead thinking about work.
3 factors lead to motivation and personal sanctification:
1. Autonomy
We want to be self-directed (1 day a week to work on anything we want)
2. Mastery - want to get better at something (wikipedia, doing it for free)
3. Challenge
Mastery
Making a contribution
Purpose
Companies that are flourishing are animated by a purpose
People are purpose maximizers, not just profit maximizers.
Autonomy, or the desire to be self-directed
Mastery, or the itch to keep improving at something that’s important to us
Purpose, the sense that what we do produces something transcendent or serves something meaningful beyond than ourselves.

Question 4

Stacked Ranking

Answer 4

Analyze the theoretical rationale behind the 
stacked ranking system using the 
contemporary theories of motivation. 
Under what conditions is the technique 
effective? How do you mitigate any 
associated side effects?

Question 5

Très Chic Case

Answer 5

Très Chic Case

Question 6

Goal Setting at Weyerhauser

Answer 6

Intervention 1: Do your best to carry more
weight on each load
Over next three months, 1-2% improvement
Intervention 2: Your goal is to load at 94%
No punishment if you do not attain goal
After three months, average loading was over
90% and very close to 94% goal

Question 7

Goal-Setting Theory

Answer 7

*Goals increase performance when the goals are:
Specific
Difficult, but accepted by employees
Accompanied by feedback (especially self-generated feedback)
*Contingencies in goal-setting theory:
Goal Commitment – public goals better!
Task Characteristics – simple & familiar better!
National Culture – Western culture suits best!

Question 8

Management by Objectives (MBO)

Answer 8

Converts overall organizational objectives into specific objectives for work units and individuals
Common ingredients:
Goal specificity
Explicit time period
Performance feedback
Participation in decision making

Question 9

SMART Goal Setting

Answer 9

Specific
Measurable
Achievable
Relevant
Time-Specific

Question 10

Restoring Equity

Equity Theory
Deals with productivity, satisfaction, absence and turnover variables
Employees weigh what they put into a job situation (input) against what they get from it (outcome).
They compare their input-outcome ratio with the input-outcome ratio of relevant others.

Answer 10

Employees who perceive inequity will make one of 6 choices:
Change inputs (less effort)
Change outcomes (paid by piece, will produce more lower quality to increase their pay)
Distort perception of self (think they work a lot harder than anyone)
Distort perception of others (Mike’s job isn’t as desirable as I thought)
Choose different referent (not doing as good as X, but I am better off than Y)
Leave the field (quit job)

Other’s Output/
Other’s Input =,
My Output/
My Input

Question 11

Forms of Justice

Organizational Justice Overall perception of what is fair in
the workplace
I think this is a fair place to work

Answer 11

Distributive Justice
Perceived fairness of outcome
I got the bonus I deserved

Procedural Justice
Perceived fairness of process 
used to determine outcome
I had input into the process used 
to determine raises and was given 
a good explanation of why I 
received the raise I did 

Interactive Justice
Perceived degree to which one is 
treated with dignity and respect
When telling me about my raise, my 
supervisor was nice and complimentary

Question 12

Variable-Pay Programs (7)

Answer 12

Bases a portion of the pay on a given measure of performance

1. Piece-Rate Pay – workers are paid a fixed sum for each unit of production completed
2. Merit-Based Pay – pay is based on individual performance appraisal ratings
3. Bonuses – rewards employees for recent performance (vulnerable to cuts - Nucor)
4. Skill-Based Pay – pay is based on skills acquired instead of job title or rank – doesn’t address the level of performance. bad top out. actuary
   More Variable Pay Programs
   Profit-Sharing Plans – organization-wide programs that distribute compensation based on an established formula designed around profitability
   Gainsharing – compensation based on sharing of gains from improved productivity. “more group incentive plans” high performers pressure weaker to improve
   Employee Stock Ownership Plans (ESOPs) – plans in which employees acquire stock, often at below-market prices. more innovation
   *variable pay doe sincrease profitability, but not for every one (risk adverse)

Question 13

Motivating Beyond Pay

Answer 13

 Employee Recognition
 Employee Engagement
 Cognitive Evaluation Theory (intrinsic 
motivation)
 Create a motivating work environment

Question 14

Self-efficacy

Answer 14

Refers to an individual’s belief that he is capable of performing a task. The higher your self-efficacy, the more confidence you have in your abilities to succeed.
Self-efficacy can create a positive spiral in which those with high efficacy become more engaged in their tasks and then, in turn, increase performance, which increases efficacy further.
Bring self-efficacy and goal-setting theory together.

Question 15

Restoring Equity?

Answer 15

Openly share information about how allocations decisions are made
Follow consistent and unbiased procedures, and open to appeals
Engage in similar practices to increase the perception of procedural justice
When addressing perceived injustices, managers should focus their actions on the source of the problems.

Question 16

Expectancy theory

Answer 16

Three key relationships:
1. Effort-Performance: perceived probability that exerting effort
leads to successful performance
2. Performance-Reward: the belief that successful performance
leads to desired outcome
3. Rewards-Personal Goals: the attractiveness of organizational
outcome (reward) to the individual
Diagram
Has only limited use. More valid when individuals clearly perceive effort – performance and performance – reward linkages. Because few individuals do, it tends to be idealistic.

Question 17

The Job Characteristics Model

Answer 17

diagram
Guidelines for Enriching a Job Using JCM
descrabe any job with 5 core job demensions:
1) skill variety -
2) task identify - (piece/whole)
3) task significance
above - expereince meaningfulness of the work; high **internal work motivitaion
**both high quality work performance
4. autonomy
above - experence responsiblity for outocomes of work
**high satifscation with the work
5. feedback
above - knowledge of acutal results of the work activites
**low absenteeism and turnover.

Question 18

Alternative Work Arrangements

Answer 18

Flextime
 Job Sharing
 Telecommuting
What can we do to positively affect the 
social and physical context of work?

Question 19

Employee Involvement

Answer 19

Use employee input (works USA, not india)
1)Participative Management - theory Y
2)Representative Participation (very legistrative)
Work Councils
Board Representatives
(overall reviews mixed, not much impact)

Question 20

Implications for Managers

Answer 20

Goal setting can lead to higher productivity
Recognize and allow for individual differences
Your motivational approach may differ for different cultures
Allow employees to participate in decisions that
affect them
Link rewards to performance
Extrinsic rewards can undermine motivation if
perceived as coercive
Check the reward system for equity
Think about how you can redesign work

Question 21

What to Pay

Answer 21

Need to establish a pay structure
Balance between:
Internal equity – the worth of the job to the organization
External equity – the external competitiveness of an organization’s pay relative to pay elsewhere in its industry
A strategic decision with trade-offs

Question 22

Maslow’s Hierarchy of Needs Theory

Answer 22

Lower Order: Physiological, Safety

High Order: Social, Esteem, Self-Actualization

Question 23

McGregor’s Theory X and Theory Y

Answer 23

X: neg: dislike work
Y: postive: work natural

Question 24

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

Answer 24

hygiene factors: so not dissatistifed: pay, qualitiy of supervisio, job secruity

Intrinsic, satisfication, motiviate by saying wokr will lead to or result in: pormotion opporutnities, personal growth, recognition

Question 25

McClelland’s Theory of Needs (Three Needs Theory)

Answer 25

nAch - need for achievement )like 50/50 odds.
nPow - need for pwoer (good manager, high this low nAff)
nAff - need for affiliation
not easy to measure
**strongest out of old therories.

Question 26

Cognitive Evaluation Theory (Self Determination Theory)

Answer 26

Self Determination Theory - like to feel like they have control over their actions (autonomy)
Cognitive Evaluation Theory - extrinsic rewrds reduce intrinsic interest in task
**external rewards: bad when they think i’m doing what organization wants *coercive, goal setting only effeciv when don’t feel coercived.
Self Concordance: how strongly people’s reasons for pursuing goals are consistent witht heir interests and core values.

Question 27

Goal-Setting Theory

Answer 27

evdience shows?
1) specific
2) challenge (accept)
3) feedback on performance
3 factors influce the goal perform relatinshps
1) goal commitement - public better
2) task characterists - simple, well learned, indep
3) national culture
+ feedback.
-if interdependent tasks - group goals better
collectivist scultre, high power distance, modreate goals more motiviatin (than challengign)
high power - assigned goasl better commitement
(theory does not address absenteeism, turnover, or satisfaction)

Question 28

Management by Objectives

Answer 28

MOB emphasizes set goals that are: 
1) tangible
2) verifivable
3) measuranble
4 ingredient common to MBO programs; 
1) goal specificity
2) paricipation in goal decisiosn
3) explicit time 
4) performance feedback 
top down/bottom up : organization goals, divisional objectives, departmetn obj, individual obj

Question 29

Self-Efficacy Theory

Answer 29

• brign goal seting and self efficany togehter to incrase self efficiacy
  1) enactive mastery (done befoe)
  2) vicarious modeling (seen others)
  3) verbal persausion = 1) pygmalion effect: tell them high IQ
  4) arousal - get exciited

Question 30

Equity Theory

Answer 30

4 referent comparisons (gender, tenure, level in orga, eduction/professionist)
1) self - inside
2) sef 0 outside
3) other 0 inside
4) othr - outside
6 choices:
1) chage inputs
2) change outputs
3) distort perception of self
4) distor percetpion of others
5) choose different reference
6) leave the field
**fairness subjective
**Orgaizational justice - overall perception of what is fair in the owrk space:
a. Distributive justice - fairenss of amount of rewards
b. Procedural Justice - process used to deermine distribution of rewards fair. *Process control and explanations.
c. Interactional Justice - one is treated with respect
*does deal with productivity, satisfiaction, absense, turn over variables. Strongest organizational justice

Question 31

Expectancy Theory

Answer 31

*strength of tendency to act a certain way, depends on strength of our expectation of a given outcome and its attractiveness.
3 relationships:
1) effort - performance
2) performance-reward
3) rewards-personal goals
*powersful explanation of variabesl like productivity, absenteeism, and turnover. .

Question 32

Job Engagemetn

Answer 32

investment of employ’s physcial, cognitive, and emotional engeries into job performance

• more job engagemetn, more productivity, less safety incidnts, less turnover
  1) is meaningful?
  2) ind values match org?
  3) leadership behaviors inspire workers?
  extreme: work/family conflict

Question 33

How to redesign jobs?

Answer 33

Job Rotation
-crosst rainign. but training costs increase, and productivitiy could decrease

Job entrichment (increase worker control planning, exectuion, and evaultion of work)

• combing tasks (increaes skill variety/task identify)
• forming ntural work units (task identify/task significance)
• estiabilshing client relationships (skill variety/feedback)
• expanding job vertically (autonomy)
• opening feedback channels (feedback)

Question 34

Rewards

Answer 34

1) what to pay - b/v internal and external equity
2) how to tpay - variable pay plans and skill bsed pay plans
3) what benefits - ex flixible benefits, individulize
4) how to construct emloyee recongition programs