MGMT1021 Chapter 13: Session 13
11 Jun 2018
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Department
Course
Professor
Session 13: Motivating Through Reward Centers
- Motivation - desire that drives effort toward a goal; distinct from performance
- Performance = ability x motivation
- Two ways to motivate
- Through rewards
- Through design of work
- Maslow’s Hierarchy of Needs
- Physiological at bottom, then safety, then love/belonging, then esteem, and self-
actualization at the top
- Assumes motivation is driven by universal needs, lower-order needs must be
satisfied first
- Positives: introduces idea of needs, highly intuitive
- Criticisms: little evidence for the model, individualistic model
- Motivation-Hygiene Theory - different factors lead to satisfaction/dissatisfaction
- Assumes what leads to satisfaction (motivators) aren’t same as what leads to
dissatisfaction (lack of hygiene factors)
- Extensions: highly intuitive, key to development of Job Design Theory
- Criticisms: methodological issues, self-serving bias, link to satisfaction but not
necessarily
- Equity theory
- Motivation via social comparison; individuals strive to restore equity
- Assumes people are motivated by the relative value of external rewards, fairness
and justice are key to motivation
- Extensions: recognizes importance of perception of rewards, not just quantity
- Expectancy theory
- Motivation equals expectancy (belief that trying hard --- better results) times
instrumentality (belief that better performance --- better reward) times valence
(value of the outcome to the person v. indifference/aversion)
- Assumes beliefs are fundamental to motivation, rational choice model
- Extensions: focuses on cognitive processes underlying motivation
- Criticisms: overly rational? Altruism, or other kinds of motivation?
- Pay for Performance
- Y=e+n, where y is sales, profits, e is effort, n is noise (random factors)
- W = s+bY, s is fixed component, b is sensitivity of pay to performance
