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Leadership
Leadership Behaviour & Motivation


1. Lussie, Robert N., Christopher F. Achuan.2010. Leadership: Theory, Application and Skill Development. 4ed. South – Western
   Cengage Learning.
2. Hughes, Richard L., Robert C. Ginnett, Gordon J. Curphy, Leadership: Enhancing the Lessons of Experience. 6th ed. McGraw-
   Hill.
Chapter 3
Learning Outcomes
List the University of Iowa leadership styles.

Describe similarities and differences between the University of Michigan and Ohio State
University leadership models.

Discuss similarities and differences between the Ohio State University Leadership Model and the
Leadership Grid.

Discuss similarities and differences among the three content motivation theories.

Discuss the major similarities and differences among the three process motivation theories.

Explain the four types of reinforcement.

State the major differences among content, process, and reinforcement theories.

Define the key terms listed at the end of the chapter.
                                                                                                  2
Behavioral Theory Paradigm


Following the study of traits in leaders,
researchers focused their attention on studying
what the leader says and does in an effort to
identify the differences in the behavior of
effective leaders versus ineffective leaders


                                                  3
Leadership Behavior
and Leadership Style


•   Behavior is based on traits and skills
•   Relationships between leaders and followers are based on
    the leaders’ traits and attitudes
•   Relationships are good predictors of employee behavior
    and performance
•   Leadership style is the combination of traits, skills, and
    behaviors leaders use as they interact with followers


                                                                 4
University of Iowa Leadership Styles

       Autocratic ------------------------ Democratic
Source: Adapted from K. Lewin, R. Lippett, and R.K. White, 1939. “Patterns of Aggressive Behavior in Experimentally Created
Social Climates.” Journal of Social Psychology 10: 271–301.




• Autocratic: Leader makes decisions, tells employees what to
  do, and closely supervises them

• Democratic: Leader encourages participation in
  decisions, works with employees to determine what to
  do, and does not closely supervise them
University of Michigan Leadership Model: Two
 Leadership Styles, One Dimension
  Job-Centered                               Employee-Centered
  Leadership Style ------------------------- Leadership Style
Source: Adapted from R. Likert, New Patterns of Management. (New York: McGraw Hill, 1961)


Job-centered leadership style:
     – Refers to the extent to which the leader takes charge to get the job done
     – The leader closely directs subordinates with clear roles and goals
     – The manager tells subordinates what to do and how to do it

Employee-centered leadership style:
    – Has scales measuring two employee-oriented behaviors of supportive leadership and
       interaction facilitation
    – The leader focuses on meeting the human needs of employees while developing
       relationships
    – The leader is sensitive to subordinates and communicates to develop trust, support, and
       respect
Ohio State University
Leadership Model

Behaviors identified:           Focuses on getting
Initiating structure behavior     the task done



                                Focuses on meeting
                                people’s needs and
Consideration behavior              developing
                                   relationships


                                                     7
The Ohio State University Leadership Model: Four
 Leadership Styles, Two Dimensions

High                                Ohio State University
         C
         o
         n
         s               Low Structure                             High Structure
         i               and                                       and
         d               High Consideration                        High Consideration
         e
         r
         a
         ti              Low Structure                             High Structure
         o               and                                       and
         n               Low Consideration                         Low Consideration

 Low
                                         Initiating Structure
                              Low                                                     High
Source: Adapted from R. Likert, New Patterns of Management. (New York: McGraw Hill, 1961)
                                                                                             8
Which is the Best Leadership Style?


• There is no one best leadership style in all
  situations.

• There has been a consistent finding that employees
  are more satisfied with a leader who is high in
  consideration.


                                                       9
Blake, Mouton, and McCanse Leadership Grid

    Country-club                    1,9                                        9,9             Team leader
    leader



      Concern
      for                                                   5,5
      People                                Middle-of-the-road
                                                  leader
   Impoverished                     1,1                                        9,1 Authority-
   leader                                                                                    compliance leader

                                 Concern for Production
Source: Adapted from Robert R. Blake and Jane S. Mouton, The Managerial Grid III (Houston: Gulf, 1985);
and Robert R. Blake and Anna Adams McCanse, Leadership Dilemmas—Grid Solutions (Houston: Gulf, 1991), 29.
                                                                                                             10
The Leadership Grid

Impoverished (1,1)
– Low concern for production
– Low concern for people
– The leader does the minimum required to remain employed


Authority-compliance (9,1)
– High concern for production
– Low concern for people
– The leader focuses on getting the job done while people are treated like
  machines


                                                                             11
The Leadership Grid (cont.)
Country club (1,9)
– High concern for people
– Low concern for production
– The leader strives for a friendly atmosphere


Middle of the road (5,5)
– Medium concern for production
– Medium concern for people
– The leader strives for satisfactory performance and morale

                                                               12
The Leadership Grid (cont.)

Team (9,9)
– High concern for people
– High concern for production
– The leader strives for maximum performance and employee
  satisfaction




                                                            13
Importance of Research in
Behavior-Based Leadership


•   Led to a shift in the leadership paradigm to contingency
    leadership theory
•   Recognized that organizations need both production and
    people leadership
•   Supported that most leadership functions can be carried out
    by someone besides the designated leader of a group
    (i.e., idea of participative leadership introduced)


                                                               14
Motivation

• Is anything that affects behavior in pursuing a
  certain outcome

• The pursuit of happiness and satisfaction is
  fundamental to motivation

• Making employees happier and healthier increases
  their effort, contributions, and productivity


                                                     15
The Motivation Process
•   People go from need to motive to behavior to consequence to
    satisfaction or dissatisfaction

•   A need or want motivates all behavior

•   Needs and motives are complex

•   Understanding needs helps the leader to better understand
    motivation and behavior

•   Motives cannot be observed; only behavior can be witnessed



                                                                  16
The Motivation Process (cont.)


Need   Motive   Behavior       Consequence   Satisfaction or Dissatisfaction




                           Feedback




                                                                               17
Major Motivation Theories
CLASSIFICATION OF MOTIVATION THEORIES               SPECIFIC MOTIVATION THEORY

1. Content motivation theories (Focus on      A. Hierarchy of needs theory
   explaining and predicting behavior based   B. Two-factor theory
   on employee need motivation)               C. Acquired needs theory



2. Process motivation theories (Focus on      A. Equity theory
    understanding how employees choose        B. Expectancy theory
    behaviors to fulfill their needs)         C. Goal-setting theory


3. Reinforcement theory                       Types of Reinforcement
   (Proposes that behavior can be             • Positive
   explained, predicted, and controlled       • Avoidance
   through the consequences for behavior)     • Extinction
                                              • Punishment


                                                                                 18
Content Motivation Theories


• Focus on explaining and predicting behavior based
  on people’s needs

• The primary reason people do what they do is to
  meet their needs or to satisfy their wants




                                                      19
Content Motivation Theories (cont.)

         Content Motivation
              Theories




Hierarchy of                Acquired
   Needs                     Needs
               Two-Factor

                                       20
Hierarchy of Needs Theory


• In the 1940s, Abraham Maslow developed his
  hierarchy of needs theory

• Based on four major assumptions




                                           21
Maslow’s Assumptions

• Only unmet needs motivate

• People’s needs are arranged in order of
  importance going from basic to complex

• People will not be motivated to satisfy a
  higher-level need unless the lower-level
  need(s) has been least minimally satisfied
• People have five classifications of needs

                                               22
Maslow’s Hierarchy of Needs

                   Self-
           Actualization Needs

             Esteem Needs

             Social Needs

             Safety Needs

           Physiological Needs

                                 23
Maslow’s Hierarchy of Needs (cont.)

Physiological needs
–   Air
–   Food
–   Shelter
–   Sex
–   Relief from or avoidance of pain




                                       24
Maslow’s Hierarchy of Needs (cont.)

Safety needs
– Safety
– Security


Belongingness (Social) needs
–   Love
–   Friendship
–   Acceptance
–   Affection
                                      25
Maslow’s Hierarchy of Needs (cont.)

Esteem needs
–   Ego
–   Status
–   Self-respect
–   Recognition
–   Self-confidence
–   Prestige



                                      26
Maslow’s Hierarchy of Needs (cont.)

Self-actualization needs
–   Develop to one’s full potential
–   Growth
–   Achievement
–   Advancement




                                      27
Motivating Employees with Hierarchy of
Needs Theory


• Meet employees’ lower-level needs so they do not
  dominate the employees’ motivational process

• Get to know and understand people’s needs

• Meet employees’ needs to increase performance



                                                     28
Two-Factor Theory

Maintenance factors
– Extrinsic motivators
– Include pay, job security, title, working
  conditions, benefits, and relationships


Motivator factors
– Intrinsic motivators
– Include achievement, recognition, challenge, and
  advancement

                                                     29
Herzberg’s Two-Factor
 Motivation Theory
 Based on two continuums:
 – Not dissatisfied with the environment (maintenance) to dissatisfied
 – Satisfied with the job itself (motivators) to not satisfied

High                                                                                                               Low
                                                 Maintenance Factors

Not Dissatisfied                           (with the Maintenance Factors)                                Dissatisfied

                                                 Motivator Factors

Satisfied                                  (with the Job Motivator Factors)                            Not Satisfied
(motivated)                                                                                          (not motivated)

Source: Adapted from F. Herzberg, “The Motivation-Hygiene Concept and Problems of Manpower.” Personnel Administrator: 3–7
(1964); and F. Herzberg, “One More Time: How Do You Motivate Employees?” Harvard Business Review (January–February 1967): 53.
Money as a Motivator


• Has limited value as a motivator

• Matters more to some people than others

• May motivate to a comfortable income level, then
  cease to be effective




                                                     31
Motivating Employees with
Two-Factor Theory

•   Managers must first ensure that the employees’ level of pay
    and other maintenance factors are adequate

•   Once employees are not dissatisfied with their pay (and
    other maintenance factors), they can be motivated through
    their jobs (intrinsic motivators)

•   Job enrichment
    Building motivators into the job itself by making it more interesting and
    challenging

                                                                                32
Acquired Needs Theory

Proposes that people are motivated by their
need for:
– Achievement
– Power
– Affiliation




                                              33
Motivating Employees with
Acquired Needs Theory


Employees with a high need for achievement (n Ach)
–   Give them non-routine work
–   Give them challenging tasks with clear, attainable objectives
–   Give them fast and frequent performance feedback
–   Give them increased responsibility for doing new things
–   Keep out of their way




                                                                    34
Motivating Employees with
Acquired Needs Theory (cont.)

Employees with a high need for power (n Pow)
–   Let them plan and control own jobs
–   Include them in decision making
–   Let them work alone rather than on teams
–   Assign them to a whole task rather than part of a task




                                                             35
Motivating Employees with
Acquired Needs Theory (cont.)

Employees with a high need for affiliation
(n Aff)

–   Have them work on teams
–   Give lots of praise and recognition
–   Have them train and orient new employees
–   Let them serve as mentors


                                               36
Process Motivation Theories

• Focus on understanding how people choose
  behavior to fulfill their needs
• Are more complex then content motivation
  theories
• Attempt to understand:
   –   Why people have different needs
   –   Why their needs change
   –   How and why people choose different means to satisfy their needs
   –   The mental process involved
   –   How they evaluate their need satisfaction
                                                                          37
Equity Theory

• Based on perceptions of fair management
   If management actions are perceived as unfair, employees
   will feel angry, outraged, resentful


• People are said to be motivated to seek social
  equity in the rewards they receive (output) for their
  performance (input)


                                                              38
Equity Theory (cont.)

Proposes that employees are motivated when their
perceived inputs equal outputs.

Our inputs                  Others’ input
(contributions)         =   (contributions)


Our outputs (rewards)       Others’ outputs
                        =   (rewards)


                                                   39
Equity Theory (cont.)

• People will compare their own perceived inputs
  and outputs to those they perceive that others
  receive

• When inequity is perceived, employees will
  attempt to reduce it by reducing inputs or
  increasing output



                                                   40
Motivating with Equity Theory

• Understand that equity is based on perception,
  which may not be correct

• Reward equitably based on production

• Ensure that employees understand the inputs that
  are required to achieve certain outputs

• When incentive pay is used, ensure that clear
  standards exist

                                                     41
Expectancy Theory


Proposes that employees are motivated when:
– They believe they can accomplish the task
– They will get the reward
– The rewards for doing so are worth the effort




                                                  42
Expectancy Theory Variables
•   Expectancy is a person’s perception of his or her ability to
    accomplish an objective

•   Instrumentality is the belief that successful performance will
    result in receiving the reward

•   Valence is the value a person places on the outcome or
    reward


    Motivation = Expectancy × Instrumentality × Valence


                                                                   43
Motivating with Expectancy Theory

•   Clearly define objectives and the required performance to
    achieve them

•   Tie performance to rewards

•   Be sure rewards are of value to the employee

•   Make sure employees believe you will do what you say you
    will do

•   Use the Pygmalion effect to increase expectations


                                                                44
Goal-Setting Theory


• Proposes that specific, difficult goals motivate
  people

• Goals give people a sense of purpose as to why they
  are working to accomplish a given task




                                                     45
How does a leader set meaningful
 goals and objectives to motivate
          subordinates?



                                46
Criteria for Objectives
Singular result
One end result

Specific
Exact performance expected

Measurable
Observe and measure progress

Target date
Specific completion date

                               47
Other Criteria for Objectives

Difficult but achievable
– Should “stretch” the employee or team, but not too much


Participatively set

Commitment of employees
– Employees must accept the objectives


                                                            48
Using Goal Setting to
Motivate Employees



May be the most effective management tool for
leaders to use to motivate followers




                                            49
Reinforcement Theory

Proposes that through the consequences for behavior,
people will be motivated to behave in predetermined
ways

Based on studies of B. F. Skinner
Uses:
– Behavior modification
– Operant conditioning



                                                       50
Components of
Reinforcement Theory


Stimulus              Responding Behavior   Consequences of Behavior—
(legal speed limit)   (speed)               Reinforcement (Police officer
                                            gives speeder a negative
                                            consequence—ticket or fine—
                                            to discourage repeat
                                            performance)




                                                                      51
Types of Reinforcement

Positive reinforcement
– Encourages continued behavior via attractive consequences (rewards)
– May be praise or a bonus, etc.



Avoidance (negative) reinforcement
– Encourages desired behavior with negative consequences for undesired
  behavior
– Rules are designed to get employees to avoid certain behavior



                                                                         52
Types of Reinforcement (cont.)

Extinction
– Used with punishment to reduce or eliminate undesirable
  behavior
– Reinforcement is withheld when undesirable behavior is
  performed
– If leaders do not reward good performance, the result may
  be the extinction of that good performance




                                                              53
Types of Reinforcement (cont.)

Punishment
– Provides undesirable consequences for undesirable behavior
– Includes
  reprimands, fines, suspensions, demotion, firing, etc.
– May reduce a specific undesirable behavior but cause others
  to appear
– Is the most controversial method of motivation
– Is also the least effective method of motivation

                                                            54
Discussion Question #1



Reinforcement theory is unethical because
  it is used to manipulate employees. Do
  you agree with this statement? Explain
                 your answer.


                                        55
Schedules of Reinforcement
Continuous reinforcement
– Each and every desired behavior is reinforced


Intermittent reinforcement
–   Based on passage of time or output
–   Passage of time is called an interval schedule
–   Output is called a ratio schedule
–   Four types of interval alternatives
–   Fixed interval schedule
–   Variable interval schedule
–   Fixed ratio schedule
–   Variable ratio schedule

                                                     56
You Get What You Reinforce



You get what you reinforce, not necessarily
            what you reward




                                          57
The Folly of Rewarding A,
  While Hoping for B
  Involves rewarding behavior that is trying to be discouraged,
  while the desired behavior is not being rewarded at all

 MANAGERS HOPE FOR:                                               BUT MANAGERS FREQUENTLY REWARD:
 Long-term growth and environmental                               Quarterly earnings
 social responsibility
 Innovative thinking and risk-taking                              Proven methods and not making mistakes
 Teamwork and collaboration                                       The best competitive individual performers
 Employee involvement and empowerment                             Tight control over operations and resources
 High achievement                                                 Another year’s effort
 Candor such as telling of bad news early                         Reporting good news, whether it is true or
                                                                  not, and agreeing with the boss, whether
                                                                  the boss is right or wrong

Source: S. Kerr, “On the Folly of Rewarding A, While Hoping for B,” Academy of Management Executive 9 (February 1995):
                                                                                                                         58
32–40.
Motivating with Reinforcement

Set clear objectives
– Employees must understand what is expected
Select appropriate rewards
– Must be seen as rewards
Select the appropriate reinforcement schedule
Do not reward unworthy performance
Look for the positive
Give sincere praise
Do things for your employees


                                                59
Giving Praise

Feedback and praise have a strong impact on performance
– As much as pay
Costs nothing
Takes only a little time
Can cause the Pygmalion effect
Creates a win–win situation
Basis of the book: The One-Minute Manager



                                                          60
Giving Praise Model



 STEP 1              STEP 2              STEP 3       STEP 4


 Tell the employee   Tell the employee   Stop for a   Encourage repeat
 exactly what was    why the behavior    moment of    performance.
 done correctly.     is important.       silence.




                                                                         61
Putting the Motivation
Theories Together


The groups of theories are complementary
Each group of theories answers a different question
     – Content motivation theories
         – What needs do employees have that should be met on the job?
     – Process motivation theories
         – How do employees choose behavior to fulfill their needs?
     – Reinforcement theory
         – What can managers do to get employees to behave in ways that
           meet the organizational objectives?



                                                                          62
Discussion Question #3


  What is your motivation theory? What
major methods, techniques, and so on, do
you plan to use on the job as a manager to
  increase motivation and performance?



                                         63

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Leadership ch03

  • 1. Leadership Leadership Behaviour & Motivation 1. Lussie, Robert N., Christopher F. Achuan.2010. Leadership: Theory, Application and Skill Development. 4ed. South – Western Cengage Learning. 2. Hughes, Richard L., Robert C. Ginnett, Gordon J. Curphy, Leadership: Enhancing the Lessons of Experience. 6th ed. McGraw- Hill.
  • 2. Chapter 3 Learning Outcomes List the University of Iowa leadership styles. Describe similarities and differences between the University of Michigan and Ohio State University leadership models. Discuss similarities and differences between the Ohio State University Leadership Model and the Leadership Grid. Discuss similarities and differences among the three content motivation theories. Discuss the major similarities and differences among the three process motivation theories. Explain the four types of reinforcement. State the major differences among content, process, and reinforcement theories. Define the key terms listed at the end of the chapter. 2
  • 3. Behavioral Theory Paradigm Following the study of traits in leaders, researchers focused their attention on studying what the leader says and does in an effort to identify the differences in the behavior of effective leaders versus ineffective leaders 3
  • 4. Leadership Behavior and Leadership Style • Behavior is based on traits and skills • Relationships between leaders and followers are based on the leaders’ traits and attitudes • Relationships are good predictors of employee behavior and performance • Leadership style is the combination of traits, skills, and behaviors leaders use as they interact with followers 4
  • 5. University of Iowa Leadership Styles Autocratic ------------------------ Democratic Source: Adapted from K. Lewin, R. Lippett, and R.K. White, 1939. “Patterns of Aggressive Behavior in Experimentally Created Social Climates.” Journal of Social Psychology 10: 271–301. • Autocratic: Leader makes decisions, tells employees what to do, and closely supervises them • Democratic: Leader encourages participation in decisions, works with employees to determine what to do, and does not closely supervise them
  • 6. University of Michigan Leadership Model: Two Leadership Styles, One Dimension Job-Centered Employee-Centered Leadership Style ------------------------- Leadership Style Source: Adapted from R. Likert, New Patterns of Management. (New York: McGraw Hill, 1961) Job-centered leadership style: – Refers to the extent to which the leader takes charge to get the job done – The leader closely directs subordinates with clear roles and goals – The manager tells subordinates what to do and how to do it Employee-centered leadership style: – Has scales measuring two employee-oriented behaviors of supportive leadership and interaction facilitation – The leader focuses on meeting the human needs of employees while developing relationships – The leader is sensitive to subordinates and communicates to develop trust, support, and respect
  • 7. Ohio State University Leadership Model Behaviors identified: Focuses on getting Initiating structure behavior the task done Focuses on meeting people’s needs and Consideration behavior developing relationships 7
  • 8. The Ohio State University Leadership Model: Four Leadership Styles, Two Dimensions High Ohio State University C o n s Low Structure High Structure i and and d High Consideration High Consideration e r a ti Low Structure High Structure o and and n Low Consideration Low Consideration Low Initiating Structure Low High Source: Adapted from R. Likert, New Patterns of Management. (New York: McGraw Hill, 1961) 8
  • 9. Which is the Best Leadership Style? • There is no one best leadership style in all situations. • There has been a consistent finding that employees are more satisfied with a leader who is high in consideration. 9
  • 10. Blake, Mouton, and McCanse Leadership Grid Country-club 1,9 9,9 Team leader leader Concern for 5,5 People Middle-of-the-road leader Impoverished 1,1 9,1 Authority- leader compliance leader Concern for Production Source: Adapted from Robert R. Blake and Jane S. Mouton, The Managerial Grid III (Houston: Gulf, 1985); and Robert R. Blake and Anna Adams McCanse, Leadership Dilemmas—Grid Solutions (Houston: Gulf, 1991), 29. 10
  • 11. The Leadership Grid Impoverished (1,1) – Low concern for production – Low concern for people – The leader does the minimum required to remain employed Authority-compliance (9,1) – High concern for production – Low concern for people – The leader focuses on getting the job done while people are treated like machines 11
  • 12. The Leadership Grid (cont.) Country club (1,9) – High concern for people – Low concern for production – The leader strives for a friendly atmosphere Middle of the road (5,5) – Medium concern for production – Medium concern for people – The leader strives for satisfactory performance and morale 12
  • 13. The Leadership Grid (cont.) Team (9,9) – High concern for people – High concern for production – The leader strives for maximum performance and employee satisfaction 13
  • 14. Importance of Research in Behavior-Based Leadership • Led to a shift in the leadership paradigm to contingency leadership theory • Recognized that organizations need both production and people leadership • Supported that most leadership functions can be carried out by someone besides the designated leader of a group (i.e., idea of participative leadership introduced) 14
  • 15. Motivation • Is anything that affects behavior in pursuing a certain outcome • The pursuit of happiness and satisfaction is fundamental to motivation • Making employees happier and healthier increases their effort, contributions, and productivity 15
  • 16. The Motivation Process • People go from need to motive to behavior to consequence to satisfaction or dissatisfaction • A need or want motivates all behavior • Needs and motives are complex • Understanding needs helps the leader to better understand motivation and behavior • Motives cannot be observed; only behavior can be witnessed 16
  • 17. The Motivation Process (cont.) Need Motive Behavior Consequence Satisfaction or Dissatisfaction Feedback 17
  • 18. Major Motivation Theories CLASSIFICATION OF MOTIVATION THEORIES SPECIFIC MOTIVATION THEORY 1. Content motivation theories (Focus on A. Hierarchy of needs theory explaining and predicting behavior based B. Two-factor theory on employee need motivation) C. Acquired needs theory 2. Process motivation theories (Focus on A. Equity theory understanding how employees choose B. Expectancy theory behaviors to fulfill their needs) C. Goal-setting theory 3. Reinforcement theory Types of Reinforcement (Proposes that behavior can be • Positive explained, predicted, and controlled • Avoidance through the consequences for behavior) • Extinction • Punishment 18
  • 19. Content Motivation Theories • Focus on explaining and predicting behavior based on people’s needs • The primary reason people do what they do is to meet their needs or to satisfy their wants 19
  • 20. Content Motivation Theories (cont.) Content Motivation Theories Hierarchy of Acquired Needs Needs Two-Factor 20
  • 21. Hierarchy of Needs Theory • In the 1940s, Abraham Maslow developed his hierarchy of needs theory • Based on four major assumptions 21
  • 22. Maslow’s Assumptions • Only unmet needs motivate • People’s needs are arranged in order of importance going from basic to complex • People will not be motivated to satisfy a higher-level need unless the lower-level need(s) has been least minimally satisfied • People have five classifications of needs 22
  • 23. Maslow’s Hierarchy of Needs Self- Actualization Needs Esteem Needs Social Needs Safety Needs Physiological Needs 23
  • 24. Maslow’s Hierarchy of Needs (cont.) Physiological needs – Air – Food – Shelter – Sex – Relief from or avoidance of pain 24
  • 25. Maslow’s Hierarchy of Needs (cont.) Safety needs – Safety – Security Belongingness (Social) needs – Love – Friendship – Acceptance – Affection 25
  • 26. Maslow’s Hierarchy of Needs (cont.) Esteem needs – Ego – Status – Self-respect – Recognition – Self-confidence – Prestige 26
  • 27. Maslow’s Hierarchy of Needs (cont.) Self-actualization needs – Develop to one’s full potential – Growth – Achievement – Advancement 27
  • 28. Motivating Employees with Hierarchy of Needs Theory • Meet employees’ lower-level needs so they do not dominate the employees’ motivational process • Get to know and understand people’s needs • Meet employees’ needs to increase performance 28
  • 29. Two-Factor Theory Maintenance factors – Extrinsic motivators – Include pay, job security, title, working conditions, benefits, and relationships Motivator factors – Intrinsic motivators – Include achievement, recognition, challenge, and advancement 29
  • 30. Herzberg’s Two-Factor Motivation Theory Based on two continuums: – Not dissatisfied with the environment (maintenance) to dissatisfied – Satisfied with the job itself (motivators) to not satisfied High Low Maintenance Factors Not Dissatisfied (with the Maintenance Factors) Dissatisfied Motivator Factors Satisfied (with the Job Motivator Factors) Not Satisfied (motivated) (not motivated) Source: Adapted from F. Herzberg, “The Motivation-Hygiene Concept and Problems of Manpower.” Personnel Administrator: 3–7 (1964); and F. Herzberg, “One More Time: How Do You Motivate Employees?” Harvard Business Review (January–February 1967): 53.
  • 31. Money as a Motivator • Has limited value as a motivator • Matters more to some people than others • May motivate to a comfortable income level, then cease to be effective 31
  • 32. Motivating Employees with Two-Factor Theory • Managers must first ensure that the employees’ level of pay and other maintenance factors are adequate • Once employees are not dissatisfied with their pay (and other maintenance factors), they can be motivated through their jobs (intrinsic motivators) • Job enrichment Building motivators into the job itself by making it more interesting and challenging 32
  • 33. Acquired Needs Theory Proposes that people are motivated by their need for: – Achievement – Power – Affiliation 33
  • 34. Motivating Employees with Acquired Needs Theory Employees with a high need for achievement (n Ach) – Give them non-routine work – Give them challenging tasks with clear, attainable objectives – Give them fast and frequent performance feedback – Give them increased responsibility for doing new things – Keep out of their way 34
  • 35. Motivating Employees with Acquired Needs Theory (cont.) Employees with a high need for power (n Pow) – Let them plan and control own jobs – Include them in decision making – Let them work alone rather than on teams – Assign them to a whole task rather than part of a task 35
  • 36. Motivating Employees with Acquired Needs Theory (cont.) Employees with a high need for affiliation (n Aff) – Have them work on teams – Give lots of praise and recognition – Have them train and orient new employees – Let them serve as mentors 36
  • 37. Process Motivation Theories • Focus on understanding how people choose behavior to fulfill their needs • Are more complex then content motivation theories • Attempt to understand: – Why people have different needs – Why their needs change – How and why people choose different means to satisfy their needs – The mental process involved – How they evaluate their need satisfaction 37
  • 38. Equity Theory • Based on perceptions of fair management If management actions are perceived as unfair, employees will feel angry, outraged, resentful • People are said to be motivated to seek social equity in the rewards they receive (output) for their performance (input) 38
  • 39. Equity Theory (cont.) Proposes that employees are motivated when their perceived inputs equal outputs. Our inputs Others’ input (contributions) = (contributions) Our outputs (rewards) Others’ outputs = (rewards) 39
  • 40. Equity Theory (cont.) • People will compare their own perceived inputs and outputs to those they perceive that others receive • When inequity is perceived, employees will attempt to reduce it by reducing inputs or increasing output 40
  • 41. Motivating with Equity Theory • Understand that equity is based on perception, which may not be correct • Reward equitably based on production • Ensure that employees understand the inputs that are required to achieve certain outputs • When incentive pay is used, ensure that clear standards exist 41
  • 42. Expectancy Theory Proposes that employees are motivated when: – They believe they can accomplish the task – They will get the reward – The rewards for doing so are worth the effort 42
  • 43. Expectancy Theory Variables • Expectancy is a person’s perception of his or her ability to accomplish an objective • Instrumentality is the belief that successful performance will result in receiving the reward • Valence is the value a person places on the outcome or reward Motivation = Expectancy × Instrumentality × Valence 43
  • 44. Motivating with Expectancy Theory • Clearly define objectives and the required performance to achieve them • Tie performance to rewards • Be sure rewards are of value to the employee • Make sure employees believe you will do what you say you will do • Use the Pygmalion effect to increase expectations 44
  • 45. Goal-Setting Theory • Proposes that specific, difficult goals motivate people • Goals give people a sense of purpose as to why they are working to accomplish a given task 45
  • 46. How does a leader set meaningful goals and objectives to motivate subordinates? 46
  • 47. Criteria for Objectives Singular result One end result Specific Exact performance expected Measurable Observe and measure progress Target date Specific completion date 47
  • 48. Other Criteria for Objectives Difficult but achievable – Should “stretch” the employee or team, but not too much Participatively set Commitment of employees – Employees must accept the objectives 48
  • 49. Using Goal Setting to Motivate Employees May be the most effective management tool for leaders to use to motivate followers 49
  • 50. Reinforcement Theory Proposes that through the consequences for behavior, people will be motivated to behave in predetermined ways Based on studies of B. F. Skinner Uses: – Behavior modification – Operant conditioning 50
  • 51. Components of Reinforcement Theory Stimulus Responding Behavior Consequences of Behavior— (legal speed limit) (speed) Reinforcement (Police officer gives speeder a negative consequence—ticket or fine— to discourage repeat performance) 51
  • 52. Types of Reinforcement Positive reinforcement – Encourages continued behavior via attractive consequences (rewards) – May be praise or a bonus, etc. Avoidance (negative) reinforcement – Encourages desired behavior with negative consequences for undesired behavior – Rules are designed to get employees to avoid certain behavior 52
  • 53. Types of Reinforcement (cont.) Extinction – Used with punishment to reduce or eliminate undesirable behavior – Reinforcement is withheld when undesirable behavior is performed – If leaders do not reward good performance, the result may be the extinction of that good performance 53
  • 54. Types of Reinforcement (cont.) Punishment – Provides undesirable consequences for undesirable behavior – Includes reprimands, fines, suspensions, demotion, firing, etc. – May reduce a specific undesirable behavior but cause others to appear – Is the most controversial method of motivation – Is also the least effective method of motivation 54
  • 55. Discussion Question #1 Reinforcement theory is unethical because it is used to manipulate employees. Do you agree with this statement? Explain your answer. 55
  • 56. Schedules of Reinforcement Continuous reinforcement – Each and every desired behavior is reinforced Intermittent reinforcement – Based on passage of time or output – Passage of time is called an interval schedule – Output is called a ratio schedule – Four types of interval alternatives – Fixed interval schedule – Variable interval schedule – Fixed ratio schedule – Variable ratio schedule 56
  • 57. You Get What You Reinforce You get what you reinforce, not necessarily what you reward 57
  • 58. The Folly of Rewarding A, While Hoping for B Involves rewarding behavior that is trying to be discouraged, while the desired behavior is not being rewarded at all MANAGERS HOPE FOR: BUT MANAGERS FREQUENTLY REWARD: Long-term growth and environmental Quarterly earnings social responsibility Innovative thinking and risk-taking Proven methods and not making mistakes Teamwork and collaboration The best competitive individual performers Employee involvement and empowerment Tight control over operations and resources High achievement Another year’s effort Candor such as telling of bad news early Reporting good news, whether it is true or not, and agreeing with the boss, whether the boss is right or wrong Source: S. Kerr, “On the Folly of Rewarding A, While Hoping for B,” Academy of Management Executive 9 (February 1995): 58 32–40.
  • 59. Motivating with Reinforcement Set clear objectives – Employees must understand what is expected Select appropriate rewards – Must be seen as rewards Select the appropriate reinforcement schedule Do not reward unworthy performance Look for the positive Give sincere praise Do things for your employees 59
  • 60. Giving Praise Feedback and praise have a strong impact on performance – As much as pay Costs nothing Takes only a little time Can cause the Pygmalion effect Creates a win–win situation Basis of the book: The One-Minute Manager 60
  • 61. Giving Praise Model STEP 1 STEP 2 STEP 3 STEP 4 Tell the employee Tell the employee Stop for a Encourage repeat exactly what was why the behavior moment of performance. done correctly. is important. silence. 61
  • 62. Putting the Motivation Theories Together The groups of theories are complementary Each group of theories answers a different question – Content motivation theories – What needs do employees have that should be met on the job? – Process motivation theories – How do employees choose behavior to fulfill their needs? – Reinforcement theory – What can managers do to get employees to behave in ways that meet the organizational objectives? 62
  • 63. Discussion Question #3 What is your motivation theory? What major methods, techniques, and so on, do you plan to use on the job as a manager to increase motivation and performance? 63