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Chapter 15 - Motivation and Leadership.doc

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Administrative Studies
ADMS 3930
Diane Jurkowski

Chapter 15 Leadership, motivating employees and working with teams are all key elements of management. What is Motivation? Motivation is the set of forces that initiates, directs and makes people persist in their efforts to accomplish a goal. - Initiation of effort o Concerned with the choices that people make about how much effort to put forth in their jobs  Example: “I hate writing performance appraisals, so I’ll just add a paragraph to last year’s appraisals,” rather than “Performance feedback is important. I’m going to schedule an hour to review each file and an hour to write each appraisal.” - Direction of effort o Concerned with the choices that people make in deciding where to put forth effort in their jobs  Example: “I’m really excited about the new computer system and can’t wait to get started,” rather than “I’ll do what I need to get by with it, but I think my time is better spent working directly with employees and customers.” - Persistence of effort o Concerned with the choices that people make about how long they will put forth effort in their jobs before reducing or eliminating those efforts  Example: “We’re only halfway to our goal with three months to get it done. We’ll never make it, so I’m not going to work at this anymore,” rather than “We’re only halfway to our goal with three months to go, but if we all keep working hard, we can do it.” Direction Initiation Persistence Motivation Basics of Motivation Effort and Performance: - When people think of motivation, they think of working hard (effort) should lead to doing a good job (performance) Effort - Initiation Performance - Direction - Persistence - Motivation is only one of three primary determinants of job performance Job performance = Motivation x Ability x Situational Constraints Job performance  how well someone performs the requirements of the job - Will suffer is one of the three determinants are weak Motivation  the degree to which someone works hard to do the job well Ability  the degree to which workers possess the knowledge, skills and talent needed to do the job well Situational constraints  Factors beyond the control of individual employees, like tools, policies and resources that have an effect on job performance Need Satisfaction - Needs are the physical or psychological requirements that must be met to ensure survival and well being - People are motivated by unmet needs. Once a need is met, it no longer motivates. Unsatisfied Tension Energized Effort Performance Satisfaction Need to Take - Initiation Action - Direction - Persistence - Managers must learn what those unmet needs are and address them o Not straightforward  Different needs theories suggest different needs categories Maslow’s McClelland’s Herzberg’s Motivator- Hierarchy Alderfer’s Erg Learned Needs Hygiene Theory Self-Actualization Power Motivators – gained from Higher Order Esteem Growth Achievement doing the job well and Needs Belongingness Relatedness Affiliation receiving rewards like recognition & advancement. Hygiene – associated with the nature of the job and Lower Order Safety Existence workplace, like security, Needs Physiological working conditions and supervisory policies Maslow - Needs are arranged in a hierarchy from low (physiological) to high (self- actualization) - Lower order needs need to be met first, one by one, before moving up the hierarchy Alderfer - People can be motivated by more than one need at a time - People are just as likely to move down the needs hierarchy as up, especially when they are unable to achieve satisfaction at the next higher need level McClelland - The degree to which particular needs motivate varies tremendously from person to person, with some people being motivated primarily by achievement and others by power or affiliation - Needs are learned, not innate Herzberg - Job satisfaction and dissatisfaction are not seen as opposite ends of the same scale but two separate scales - Improving things extrinsic to the job (hygiene) will reduce job dissatisfaction but will not improve motivation - Only through improving motivators will you increase an employee’s motivation Studies indicate there are two kinds of needs categories: 1. Lower order needs - Concerned with safety and with physiological and existence requirements 2. Higher order needs - Concerned with relationships, challenges and accomplishments, and influence - Higher order needs will not motivate people as long as lower order needs are satisfied Extrinsic and Intrinsic Rewards Intrinsic Rewards Unsatisfied Tension Energized Effort Performance Satisfaction Need to Take - Initiation Action - Direction Extrinsic Rewards - Persistence - Tangible and Extrinsic visible to others Rewards - Given to employees contingent on the performance of specific tasks or behaviours - Managers determine and control the distribution, frequency and amount of extrinsic rewards such as pay, company stock, benefits and promotions - Need extrinsic rewards to get people to do things they wouldn’t otherwise do - Rewards are used to motivate people to perform three basic behaviours: o Joining the organization o Regularly attending their jobs o Performing their jobs well Intrinsic Rewards - Natural rewards associated with performing a task or activity for its own sake o Sense of interest and enjoyment from the activities or tasks that are performed - Examples: o Sense of accomplishment or achievement o A feeling of responsibility o The chance to learn something new or interact with others o The fun that comes from performing an interesting, challenging and engaging task Motivating with the Basics What practical things can managers do to motivate employees to increase their effort? - Start by asking people what their needs are - Satisfy lower order needs first o Providing the equipment, training and knowledge to create a safe workplace free of physical risks, paying employees well enough to provide financial security and offering a benefits package that will protect employees and their families through good health and disability insurance - Expect people’s need to change o As other needs are satisfied o When situations change - Satisfy higher order needs by looking for ways to allow employees to experience intrinsic rewards o Create opportunities for employees to take greater responsibility for their work o Give employees the freedom to pursue tasks and projects they find naturally interesting How Perceptions and Expectations Affect Motivation Equity Theory - States that people will be motivated when they perceive that they are being treated fairly o Stresses the importance of perceptions  People must perceive that, relative to others, they are being treated fairly  In the eye of the beholder  If people truly perceive that they are being treated unfairly, then inequality exists, regardless of the ‘objective equity’ - Components of Equity Theory o Inputs  The contributions employees make to the organization  Includes: • Education and training • Intelligence • Experience • Effort • Number of hours worked • Ability o Outcomes  The rewards employees receive for their contributions to the organization  Includes: • Pay • Fringe benefits • Status symbols • Job titles and assignments • Leadership style of supervisor o Referents  Others with whom people compare themselves to determine if they have been treated fairly • Usually compare themselves to referents who hold the same or similar jobs, or similar to themselves in some way (race, gender, age, etc…) - Outcome/Input (O/I) Ratio o An employee’s perception of the comparison between the rewards received from an organization and the employee’s contributions to that organization OUTCOMES SELF= OUTCOMES REFERENT INPUTS SELF INPUTS REFERENT o If a person perceives their O/I ratio is equal to the referent’s O/I ratio, they conclude that they are being treated fairly o If a person perceives that their O/I ratio is different from their referent’s O/I ratio, they conclude that they have been treated inequitably or unfairly Two kinds of inequality: 1. Underreward - Occurs when the referent you compare yourself to is getting more outcomes relative to inputs than you are o Experience anger or frustration 2. Overreward - Occurs when you are getting more outcomes relatives to your inputs than the referent to whom you compare yourself o Experience guilt How People React to Perceived Inequality: - Perceived inequality affects satisfaction o Underreward = frustration or anger o Overreward = guilt - These reactions lead to tension and a strong need to take action to restore equity in some way - 5 ways in which people try to restore equity when they perceive that they have been treated unfairly: 1. Reducing inputs - Decreasing or withholding effort 2. Increasing outcomes - Asking for a raise - Pointing out the inequity to the boss and hoping that he or she takes care of it - Labour unions or provincial labour boards o Joining a union 3. Rationalizing inputs or outcomes - Employees restore equity by making mental or emotional “adjustments” in their O/I ratios or the O/I ratios of their referents - “Things could be worse. I still have a job.” - Used when other ways to restore equity aren’t available 4. Changing the referent - People compare themselves to someone other than the referent they had been using for previous O/I ratio comparisons 5. Simply leaving - Used when none of the above options restore equity - Quit jobs - Transfer - Increase absenteeism Motivating with Equity Theory: - Look for and correct major inequalities - Reduce employees’ inputs o Ask employees to do less, not more o Have them identify and eliminate the 20% of their jobs that does not increase productivity or add value for customers o Have managers eliminate company-imposed requirements that really aren’t critical to managers’, employees’ or companies’ performance  Unnecessary meetings, reports, etc… - Make sure decision making processes are fair o Distributive justice  The perceived degree to which outcomes and rewards are fairly distributed or allocated o Procedural justice  The perceived fairness of the process used to make reward allocation decisions • Employees who were laid off tend to be hostile towards their employer when they perceive that the procedures leading to the layoffs were unfair • Employees who perceive layoff procedures were fair tend to continue to support and trust their employers o If employees perceive that their outcomes are unfair (distributive justice) but that the decisions and procedures leading to those outcomes were fair (procedural justice), they are much more likely to seek constructive ways of restoring equity.  Discussing matters with managers o If employees perceive both distributive and procedural justice to be unfair, they may resort to more destructive tactics:  Withholding effort  Absenteeism  Tardiness  Sabotage  Theft Expectancy Theory - States that people will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded and that they will be offered attractive rewards. - Components of Expectancy Theory: o Valence  The attractiveness or desirability of a reward or outcomes • The greater the sum of valances, the more effort people will choose to put forth on the job o Expectancy  The perceived relationship between effort and performance • Strong expectancies = employees believe their hard work and efforts will result in good performance, so they work harder • Weak expectancies = employees figure that no matter what they do or how hard they work, they won’t be able to perform their jobs successfully, so they don’t work hard o Instrumentality  The perceived relationship between performance and rewards • When instrumentality is strong, employees believe that improved performance will lead to better and more rewards, and they will choose to work harder • When instrumentality is weak, employees don’t believe that better performance will result in more or better rewards, so they will choose not to work as hard o For people to be highly motivated, all three variables must be high o If any one of the variables declines, overall motivation will decline too
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