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University of Toronto Scarborough
Management (MGS)

MGTB23 & MGTB29 Final Exam Chapter Summary Chapter 5: Motivation Motivation is the extent to which persistent effort is directed toward a goal. Needs Theories: Maslow – Five levels of human needs including physiological, safety, social, self-esteem, self-actualization (refer to pyramid). First three are deficiency needs, last two are growth needs, i.o.w., people are motivated when the first three are absent and also to achieve the last two after the first three are present. Pre-potency principle states that people will be motivated to satisfy a need, once it is satisfied, people move onto satisfying the next level motivation. Once satisfied a person cannot go back to satisfy a lower level need Aldefer’s ERG – Three level of human needs including Existence, Growth and Relatedness Needs. This theory states that the satisfaction of motivation needs can occurs in any order or sequence. McClelland – states that humans have three needs, namely a need to affiliation (nAff), power (nPow) and achievement (nAch). People will be motivated as long as their job fits their motivation need. Remember! In the context of the Needs theories, people are diverse in what motivates them and managers need to appreciate that intrinsic motivation can be identified and organizations can address either higher or lower order needs. Process Theories: Expectancy – Motivation = Expectancy (C) x Instrumentality (I) x Valence(V) where Expectancy is the probability of effort leading to performance, Instrumentality is the probability that performance will lead to an outcome and Valence is the value a person attaches to that outcome. Equity – This theory states that people will be motivated by the extent that they perceive fairness in the comparison between their own input and outcomes with the inputs and outcomes of those with whom they compare themselves. Goal Setting – This theory states that people will be motivated goals are specific, challenging and accepted. There also needs to be feedback and commitment to goals. Exhibit 5.7 (pg 170 is important). Goal commitment has been found to be enhanced through participation, Rewards and Supportiveness. Chapter 6: Applying Motivation Blue Collar jobs – piece rate payment and wage incentive plans have been found to be most effective, but causes problems such as lowered quality, differential opportunity, reducing cooperation, incompatible job design and restriction of production by workforce. White Collar jobs – Merit pay plans (bonuses) have been found to be effective but are undermined by problems such as low discrimination, small increases and pay secrecy. Motivating Teamwork – Strategies that have been found to be effective include profit sharing, employee stock options, gain sharing and skill based pay. Motivating through Job Design – Design jobs to be intrinsically motivating e.g. Job Scope and Job Characteristics Model, which states that 5 components (Task identity, Task Significance, Skill Variety, Autonomy and Feedback) moderated by three factors (Growth needs strength, KSA’s and Contextual organizational issues) can lead to critical psychological states which in turn results in increased performance. Know the formula for the Motivating Potential Score (MPS) only to recognize it. No calculations will be required. Methods to increase individual motivation – 5 factors increase individual motivation, namely; combining tasks, establishing external and internal client relationships, expanding job vertically, creating work teams and ensuring open feedback channels. Alternative Work Schedules – Four work schedules have been found to increase motivation in diverse workforces, including Flex-time, Compressed Workweek, Job Sharing and Telecommuting. Chapter 9: Leadership The influence that particular individuals exert on the goal achievement of others in an organizational context. Trait Theories – State that leadership is the result of specific straits that are either genetically-based or environmentally developed or both. Traits such as emotional intelligence, motivation to lead, personality, intelligence, etc. The Ohio State studies found that leadership revolved around two traits, namely Consideration for people and Initiation for Structure (people vs. performance). The Michigan State studies called these Task-oriented and Employee-oriented. Situational Theories: Fiedler’s contingency Theory states that successful leadership depends on how favourable the situation is to exerting influence. He designed the Least Preferred Coworker diagnostic tool where leaders are asked to describe their least preferred coworker. If the description is overtly positive, then the leader is relationship oriented. If the description is overtly negative, then the leader is task oriented. House’s Path-goal Theory states that people are motivated when they know wh
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