Exam 2 Flashcards
- What are the three components of performance? What are the three components of motivation? What is the role of engagement?
3 Components of Performance (P = M x A x O)
Motivation
Ability
Opportunity
3 Components of Motivation
Direction of effort - what do you do?
Intensity of effort - how hard do you do it?
Persistence of effort - how long do you do it?
Role of Engagement - high level of intensity and persistence in work effort. Employees who are engaged completely invest themselves and their energies into their job
- What is the difference between extrinsic and intrinsic motivators? Be familiar with examples of each. Why is money so important?
Extrinsic Motivators - motivation that is controlled by some contingency that depends on task performance
Ex: pay, promotions, bonuses, praise, job security
Intrinsic Motivators - motivation that is felt when task performance serves as its own reward
Ex: enjoyment, interestingness, accomplishment, knowledge gain, skill development
Money is important because it gives a sense of achievement, a level of respect, and the feeling of freedom
- Be familiar with expectancy theory including the three main components, how those components can be influenced by organizations, and how you can predict performance based on the theory.
Expectancy Theory - The belief that a high level of effort will lead to the successful performance of a task
Motivation is fostered when the employee believes three things…
That effort will result in performance
That performance will result in outcomes
That those outcomes will be valuable
3 Main Components
Expectancy - If I exert a lot of effort, will I perform well?
Instrumentality - If I perform well, will I receive outcomes?
Valence - Will the outcomes be satisfying?
Organizations can influence expectancy by…
Supportive leadership, Access to resources, Self Efficacy
Motivational Force = Expectancy x Instrumentality x Valence
Motivation is zero if either expectancy, instrumentality, or valence is zero
- Be familiar with the three need theories we discussed in class (Maslow’s hierarchy of needs;
Alderfer’s ERG theory, and McClelland’s Acquired Need theory).
Maslow’s Hierarchy of needs - prepotency: Humans have innate needs that motivate them in a hierarchical manner where lower level needs must be satisfied before higher level needs are activated. Physiological, Safety & Security, Belongingness, Esteem, self-actualization.
Alderfer’s ERG theory - frustration-regression: builds on Maslow’s theory by combining some of the needs and replacing prepotency with frustration-regression. Existence, relatedness, growth.
McClelland’s Acquired Needs theory: This theory differs in one significant way from the previous two. It suggests that people are not born with needs but develop them during early life experiences. People can develop needs for all of these but usually one is dominant leading to variances in behavioral tendencies. Achievement, power, and affiliation
- What makes a goal an effective one? Which of the main components of motivation is the focus of goal setting?
A goal must be difficult and specific
You must have SMART goals
Specific
Measurable
Achievable
Results based
Time sensitive
Goal setting is primarily focused towards direction of effort
- What is the role of goal difficulty, feedback, task complexity, and goal commitment in the
effectiveness of goal setting? What influences goal commitment?
Goal difficulty results in higher levels of performance than assigning no goals, easy goals, or “do you best” goals
Difficult goals allow for intensity and persistence to be maximized
Feedback - if you can’t measure yourself or others, then you have nothing to score yourself against
It refers to the degree to which the job itself provides information about how well the job holder is doing
Task complexity - The degree to which the information and actions needed to complete a task are complicated
Goal commitment - the degree to which employees buy into goals (rewards, publicity, support, participation, resources)
When goal commitment is high, assigning specific and difficult goals will have significant benefits for task performance
- What is the primary focus of equity theory? How is it determined?
Equity Theory - Motivation is maximized when an employee’s ratio of “outcomes” to “inputs” matches those of some “comparison other.”
Motivation also depends on the outcomes received by other employees
- What are the various comparisons that people could make? What are the different personality types in relation to equity theory?
Comparison Others
Job equity: compare yourself to someone doing the same job in the same organization.
Company equity: Compare yourself to someone doing a different job in the same organization.
Occupational equity: Compare yourself to someone doing the same job in a different organization.
Educational equity: Compare yourself to someone with the same level of education.
Age equity: compare yourself to someone of the same age
Personality Types
Sensitives: follow the theory as stated
Benevolents: comfortable with lower ratio; givers
Entitleds: must have higher ratio; takers
- What are the reactions to inequity and how do they differ in relation to positive and negative inequity?
Equity: no actions needed
Underreward inequity: grow your outcomes by talking to your boss or by stealing from the company, or you could shrink your inputs by lowering the intensity or persistence of effort.
Overreward Inequity: shrink your outcomes (this is highly unrealistic), or you could grow your inputs through some more high quality work or through some cognitive distortion
- What is psychological empowerment and what four beliefs make it up?
An intrinsic form of motivation derived from the belief that one’s work tasks are contributing to some larger purpose
Fostered by four beliefs:
Meaningfulness
Self-determination
Competence
Impact
- How does motivation relate to job performance and organizational commitment?
Motivation has a strong positive effect on job performance
Less is known about the effects of motivation on organizational commitment, but equity has a moderate positive effect on organizational commitment
What are the various ways that organizations apply motivational concepts in compensation
systems? Be familiar with how each relates to creating a clear goal and connecting the individual’s performance to outcomes.
Piece rate - A specified rate is paid for each unit produced, each unit sold, or each service provided
Merit pay - An increase to base salary is made in accordance with performance evaluation ratings
Lump sum bonuses - A bonus is received for meeting individual goals but no change is made to the base salary. The potential bonus represents “at risk” pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large
Recognition awards - Tangible awards (gift cards, merchandise, trips, special events, time off, plaques) or intangible awards (praise) are given on an impromptu basis to recognize achievement
Gainsharing - A bonus is received for meeting unit goals (department goals, plant goals, business unit goals) for criteria controllable by employees (labor costs, use of materials, quality). No change is made to the base salary. The potential bonus represents “at risk” pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large
Profit sharing - A bonus is received when the publically reported earnings of a company exceed some minimum level, with the magnitude of the bonus contingent on the magnitude of the profits. No change is made to the base salary. The potential bonus represents “at risk” pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large
- What is trust and how does it relate to reputation? What are the three types of trust and how do they relate to each other?
Trust - The willingness to be vulnerable to a trustee based on positive expectations about the trustee’s actions and intentions (willing to be vulnerable)
3 types of trust
Disposition based trust - trust propensity
Cognition based trust - trustworthiness (ability, benevolence, integrity)
Affect based trust - feelings towards trustee
A firm’s reputation is one of its most prized possessions
Reputation reflects the prominence of a brand in the minds of the public and its perceived quality
It can be easily damaged
- What is trust propensity?
Trust Propensity - A general expectation that the words, promises, and statements of individuals and groups can be relied upon
- What are the components of cognition-based trust?
Ability
Benevolence
Integrity
- Be able to distinguish between the four types of organizational justice and how they might
interact with each other. Also, be familiar with what contributes to the perceptions of each type of justice.
Distributive Justice (fairness of outcome) - equity (tangible reward), equality (opportunity), need (demands)
Procedural Justice (fairness of decision making) - voice, correctability, consistency, bias suppression, representativeness, accuracy
Interpersonal Justice (fairness of treatment) - respect, propriety
Informational Justice (fairness of communication) - justification, truthfulness
- What are ethics? What is the difference between merely ethical and especially ethical behavior? What is whistleblowing?
Ethics - The degree to which the behaviors of an authority are in accordance with generally accepted moral norms
Merely ethical - you obey laws and live up to contractual obligations
Especially ethical - you go above and beyond minimum
Whistleblowing - expose illegal or immoral actions by the organization to the public
- Be familiar with the four-component model of ethical behavior.
Moral Awareness (recognition of moral obligation)
Moral Judgment (distinguish between right and wrong)
Moral Intent (desire to act ethical)
Ethical Behavior (acting ethical)
