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BU288 Midterm 2 Review.doc

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Simon Taggar

BU288 Midterm 2 Review What is Motivation? • Motivation is the extent to which persistent effort is directed toward a goal • Based on moderators • Performance is the extent to which an employee contributes to achieving the objectives of the organization • Motivation is a large determinant in performance, once can be really motivated but not be able to create high performance in an organization • In organizations, there is a core-peripheral system where it is broken down into subcategories which are broken down into inner and outer levels Multiple Strategies • Competitive advantage through human capital (rare value) and processes • Core employees – critical for value creation • Inner core – managers, technical specialists and strategically located workers who are responsible for valuable innovation and responsible imitation – adaptive capacity of firm • Outer core – employees with whom stable employee relationships must be built if the firm is to meet its commitments – operational capacity. Continuous improvement within the existing strategic paradigm • Equity is important for core employees & their motivation is important • Justice is important • Psychological Contracts are important • Intrinsic motivation • Psychological contract is when one enters a relationship with an organization and is accepting of a belief that the organization promises that is not explicitly mentioned on a contract; based upon one’s beliefs, expectations; quality of the relationship of the leader and work environment Operationalizing Strategy • Cost reduction/low cost o Work context  Tight controls  Overhead maximization  Economies of scale  Increase amount of centralization  Use temporary workers  Use part-time workers  Overtime  Re-engineer  Reduce management  Outsourcing o High levels of reliable role behaviour while minimally staffed o Moderate amounts of employee initiative, innovation and spontaneity o Transactional relationship - $ for work o Transactional relationship – working just for money, pure transaction of money exchange, mindset that something must be given up to gain something, working in exchange for money o Employee  Generally – poorly skilled workers that can be easily replaced  Routine jobs o Selection  Internal promotions  Large selection pools  Word-of-mouth, referrals, Canada employment centers o Compensation  Low  Green-fields/off-shore/outsourcing/contingent and part-time workers  Pay-for-performance o Training  Minimal  Focused on increasing efficiency o Performance evaluations  Short term focus  Explicit  Individual behaviour • Differentiation o Differentiation through:  Low cost  Customer Service  Style  Convenient location  Technology  Branding  Combination o Work context  Initiative/challenge/communication  Creativity in generating quality/new products  Performance standards – process & outcomes  Broadly defined jobs/autonomy/empowerment • Employee suggestion programs • Flexible job design • Problem-solving teams • Self-directed work groups  Comfortably staffed – not too lean  Continuous development – learning organization o The Employee  Creativity  Context o HR Planning  Getting high quality people is important  Succession planning is important  Employee participation  Long Term o Selection  New perspectives  Creative people o Compensation  Internal and external equity  Fixed and variable pay o Training  Technical and teamwork skills are important  Learning is valued o Performance evaluations  Focus on empowerment, diversity, sensitivity, teams, extra-role behaviour – broader competencies Core versus Peripheral employees Core Staff Peripheral Staff Innovation/Quality Low Cost Profit sharing Piece Rate – produce more to earn more money Merit bonus Sales – sell more to earn more Broad competencies Commission Outcomes and processes Gain Sharing – for one dollar saved, a certain percentage is rewarded back to the worker, helping the company save more profits which are distributed to the employee Coaching Specific behaviour Two Formal appraisals per year Outcomes Administrative Purposes – pay for One formal appraisal performance or placement/promotions Developmental Purposes – feedback, Gain knowledge/evaluate – selection and performance improvement, career promotion, errors in job analysis, errors planning in job design, avoid discrimination, get to know what is happening on the “front line” Developmental purposes – feedback, performance improvement Methods of Coordination as a Continuum of Worker Discretion • Peripheral + Low Cost = Least worker discretion • Core + innovation/quality = Most worker discretion • Higher up we get in the organization, standardization of outputs becomes more key within the organization • Mutual adjustment – basically being part of a team and figuring out what your role is or will be Motivation – early theories • Hedonism o Humans seek:  Pleasure versus Pain  Comfort versus Discomfort o Works to an extent o Challenged – volunteers, athletes, employee alterism/helping/coop • Economic man o Taylor’s scientific management o Humans are motivated to earn as much money as they can o Challenged through observed behaviours like ‘acceptable level of output’ • During the industrial revolution, common thinking was that workers (moving into cities) were hedonistic who were just concerned with finding pleasure and avoiding pain, avoid as much discomfort as possible, does not necessary explain behaviour (volunteerism, kindness of others, helping behaviour) • Economic man was a belief that people only worked for money even though people may have different motivations other than money • McGregor’s Theory X & Y o Humans can be motivated by many things including money o Lead to NEED theories…(versus process theories – how various factors motivate people) o X – lazy and avoid work o Y – ambitious, self-motivated and ability for creative problem solving • Need theories – people act to satisfy their needs • Process theories – HOW different factors motivate people • Maslow’s hierarchy of needs o People have five sets of needs o Lowest-level unsatisfied need category has the greatest motivating potential o Physiological  Safety/security  Belongingness  Esteem  Self- actualization o Need for security guarantees an income and some security in the job, safety o Belongingness – need for interaction with others o Esteem – need to feel self-worth, meaning for being in the world o In NA, most of us are at self-esteem, confident o In contrast, those in Africa or in another third-world country will have needs based primarily on physiological needs o Some industrialized countries are at the security need level want some security o Once a need is satisfied, attention is turned to the next highest level (the satisfied need is no longer an effective motivator) o Only at the self-actualization level do needs become stronger as they are gratified o Intrinsic motivation becomes more important as one moves up the hierarchy • Needs do not seem to cluster into five levels • No progression up the hierarchy • Some needs may be absent • Alderfer’s ERG theory o Existence needs o Relatedness needs o Growth needs o The more lower level needs are gratified, the more higher level need satisfaction is desired o The less higher-level needs are gratified, the more lower level need satisfaction is desired o Extrinsic motivators may substitute for intrinsic motivators o Once some needs are met, there is an exchange between levels o Alderfer combined levels of Maslow’s needs into three need groups – Existence, Relatedness and Growth o Based around satisfying intrinsic needs, can compensate for extrinsic motivators o No rigid hierarchy of needs o When higher level needs are satisfied, people will increase their desire for gratification of lower level needs o More than one kind of need may work simultaneously • McClelland’s Theory o Need for Achievement  Take responsibility for outcomes  Set moderately difficult goals that provide for calculated risk  Obtain feedback o Need for affection  Desire to establish friendly, compatible interpersonal relationships – social networks, avoid conflict, etc o Need for power  Desire to have strong influence over other people  Effective managers are low need for affection, high need for power – used to achieve organizational goals o McClelland looked at those personality needs as needs for achievement, affectivity and power o Effective managers are low in need for affiliation and high on need for power – more desire to gain power since managers need the ability to direct other people o Learn about what employee needs are and try to meet those needs o McClelland looked at these personality needs as needs for achievement, affectivity and power o Effective managers are low in need and high on need for power – more desire to gain power since managers need the ability to direct other people • Dual Structure Theory o Two factors: o Hygiene factors – lower order needs – pay, security, working conditions  Absent = Dissatisfaction  Present = Not dissatisfied – okay o Motivation factors – higher order – achievement, recognition  Absent = No Satisfaction – okay  Present = satisfaction & motivation o Eliminate situations causing dissatisfaction o More towards JOB ENRICHMENT o If factors are satisfied, people will be “okay”, but if dissatisfied, then it will be difficult to motivate them unless the needs are met o Basic needs must be met first, then if motivation factors are met will lead to affective commitment o Hygiene factors  motivation factors  job commitment • Reinforcement Theory o Behaviour  consequences o Pleasant consequences  Behaviour Repeated o Unpleasant consequences  Behaviour Avoided o 4 types of Behaviour Modifications  Positive – reward desirable behaviour  Avoidance – escape unpleasant behaviour  Extinction – eliminate rewards to decrease frequency of behaviour  Punishment – punish behaviour o Usage of positive reinforcement more effective in generating desirable behaviour • Expectancy theory o Most comprehensive explanation o Strength of a tendency to act in a certain way depends on the strength of the expectation that the act will be followed by a given outcome and the attractiveness of that outcome to the individual o Process theories were based beyond the behavioural factor, understands the thoughts o Effort  Performance o Performance  Outcome o Obtaining the outcome o Fundamental Questions:  Will I be able to achieve or meet the expectations of the organization  Will I be able to get that particular performance to meet said expectation (if performance is done well, will there be a promotion)  Do I really want this outcome? o Attractiveness (Valence)  Importance an employee places on the potential outcome o Performance-reward linkage (instrumentality) o Effort-performance linkage (expectancy)  Some support o Implications:  Clarify paths, diverse needs • Equity theory o Individuals are motivated to maintain an equitable exchange relationship o Valence – attractiveness, the importance of the value of the outcome • Social comparison process o Based on human desire for Fairness o 4 step process used  Own treatment by firm  Comparison others treatment  Own circumstances versus other’s circumstances  Perception of equity/inequity o Ratios compared:  Own versus others  Inputs/outputs o If inequity perceived:  Change numerator OR denominator  Alter perceptions of self OR other  Find new comparison basis  Leave situation Applied Motivation Techniques • Goal setting o Social learning theory – pride/shame o Monitoring of workplace behaviour • Job Design Approaches o Specialization o Rotation o Enlargement o Enrichment o Motivational properties of jobs o Alternative work arrangements • Money Motivation • Direct efforts to goal-relevant activities and away from goal-irrelevant actions • Can lead to more effort • Persistence • Can lead an individual to develop cognitive strategies to Applied Motivation Techniques • Self-observation (monitoring one’s activities) • Self-judgment • Self-reactions Goals • Effective versus ineffective goals o Clear/measurable (what to do & by when) o Challenging yet achievable o Given serious consideration in performance evaluation o Rewarded goals – help next time • Goals lead to performance when o Acceptance of goal & commitment to goals  Participated in goal formulation  Perceived as realistic  Goal achievement leads to desirable outcomes • Goals need to be clear and measurable; people should be given clear, measurable goals to be in high performance • Set a goal that is difficult for people but it can’t be too difficult that it is considered to be impossible to achieve • People need to be committed to a goal, if people are involved, realistic goal and it leads to a desirable outcome • Goals need to be: o Specific o Measurable o Attainable o Realistic o Timely Goal Orientation as Traits • Learning goal orientation – mastering new situations/learning • Performance-prove goal orientation – seek favourable judgments • Performance-avoid goal orientation – seek negative judgments • Learning goal orientation is where their way of approaching goals is for the learning experience (the process), want to learn to adopt to new situations • Performance goal orientation is where the outcome is the key to the goal, whatever reward could be gained • Some goal orientation occurs because a person wants to avoid negative judgments, afraid of the outcome from not achieving the goal Learning goals • Desire to increase competence and continually improve oneself • Adaptive responses – increased effort to solve a problem/more perseverance when confronted with a difficult situation • Both working smart and working hard • By continuing to learn helps prevent discouragement, do better in the workplace • Too concerned with performance leads to increased anxiety Performance Goals • Focus on outcome leads to increased anxiety and an inability to persist when faced with obstacles • Approaches work negatively as they feel pressured to achieve said goal, objective is to change cognitions Goals • High performance versus do your best goals • Ongoing Feedback o Goal setting may have little effect if individuals cannot check where the state of their performance is in relation to their goal • Learning goals • Proximal/distal goals • With more complex jobs, goals become difficult to see achievement unless there is feedback • Giving a learning goal orientation allows for consistent learning • Often, organizations look at what is the common goal between workers and managers, help develop and achieve such goals • Proximal goals are close goals while distal goals are far away goals (unrealistic) • Part of management by objectives – overall goal (mission, vision) and cascading goals (with each job having its own goal) Management by Objectives • Overarching objectives set by top management • Lower level managers set own aligned goals • Cascading goals • Manager acts as counsellor – PA • Sub-goals and coaching • Hard to give negative feedback, feel like being cohersive • Issues: o Short term versus long term  Process versus outcomes  Quantitative goals o May not work on complex jobs o Low level goals o Overall – works quite well if implemented correctly • In
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