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Chapter 4
Motivating
Self and Others
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Motivating Self and Others
Questions for Consideration
1. What is motivation?
2. How do needs motivate people?
3. Are there other ways to motivate people?
4. Do equity and fairness matter?
5. Are there tips for motivating people for different
goals?
6. How do you motivate for individual differences?
7. What kinds of mistakes are made in reward systems?
8. Do motivational theories work the same in every
country?
9. Could rewards be overrated?
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
What is Motivation?
• Motivation
– The processes that account for an
individual’s intensity, direction, and
persistence of effort toward attaining a
goal
• Intensity: how hard a person tries
• Direction: where effort is channeled
• Persistence: how long effort is
maintained
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Theory X and Theory Y
• Theory X
– The assumption that employees dislike work, will
attempt to avoid it, and must be coerced,
controlled, or threatened with punishment if they
are to perform.
• Theory Y
– The assumption that employees like work, are
creative, seek responsibility, and can exercise selfdirection and self-control.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Motivators
• Intrinsic
– A person’s internal desire to do something,
due to such things as interest, challenge,
and personal satisfaction.
• Extrinsic
– Motivation that comes from outside the
person, such as pay, bonuses, and other
tangible rewards.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Needs Theories of
Motivation
• Basic idea:
– Individuals have needs that, when
unsatisfied, will result in motivation
• Maslow’s hierarchy of needs
• Herzberg’s two factor theory
(motivation-hygiene theory)
• Alderfer’s ERG theory
• McClelland’s theory of needs
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Maslow’s Hierarchy of
Needs
• Physiological
– Includes hunger, thirst, shelter, sex and
other bodily needs
• Safety
– Includes security and protection from
physical and emotional harm
• Social
– Includes affection, belongingness,
acceptance, and friendship
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Maslow’s Hierarchy of
Needs
• Esteem
– Includes internal esteem factors such as
self-respect, autonomy, and achievement;
and external esteem factors such as status,
recognition, and attention
• Self-actualization
– The drive to become what one is capable of
becoming; includes growth, achieving one’s
potential, and self-fulfilment
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Exhibit 4-1
Maslow’s Hierarchy of
Needs
Selfactualization
Esteem
Social
Safety
Physiological
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Herzberg’s MotivationHygiene Theory
• Hygiene factors - necessary, but not
sufficient, for healthy adjustment
– Extrinsic factors; context of work
• Company policy and administration
• Unhappy relationship with employee's
supervisor
• Poor interpersonal relations with one's
peers
• Poor working conditions
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Herzberg’s MotivationHygiene Theory
• Motivators - the sources of satisfaction
– Intrinsic factors; content of work
• Achievement
• Recognition
• Challenging, varied or interesting
work
• Responsibility
• Advancement
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Exhibit 4-2 Contrasting
Views of Satisfaction and
Dissatisfaction
Traditional view
Dissatisfaction
Satisfaction
Herzberg's view
Motivators
No Satisfaction
Satisfaction
Hygiene Factors
Dissatisfaction
No dissatisfaction
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Criticisms of MotivationHygiene Theory
• The procedure that Herzberg used is limited
by its methodology
• The reliability of Herzberg’s methodology is
questioned
• Herzberg did not really produce a theory of
motivation
• No overall measure of satisfaction was used
• The theory is inconsistent with previous
research
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Alderfer’s ERG Theory
• Existence
– Concerned with providing basic material
existence requirements
• Relatedness
– Desire for maintaining important
interpersonal relationships
• Growth
– Intrinsic desire for personal development
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
McClelland’s Theory of
Needs
• Need for Achievement
– The drive to excel, to achieve in relation to a set of
standards, to strive to succeed
• Need for Power
– The need to make others behave in a way that they
would not have behaved otherwise
• Need for Affiliation
– The desire for friendly and close interpersonal
relationships
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Exhibit 4-4 Summarizing the
Various Needs Theories
Maslow
Alderfer
Herzberg
McClelland
Growth
Motivators
Need for Achievement
Self-Actualization
Esteem
Affiliation
Need for Power
Relatedness
Hygiene
Factors
Security
Need for Affiliation
Existence
Physiological
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Summary: Hierarchy of
Needs
– Maslow: Argues that lower-order needs must be satisfied
before one progresses to higher-order needs.
– Herzberg: Hygiene factors must be met if person is not to be
dissatisfied. They will not lead to satisfaction, however.
Motivators lead to satisfaction.
– Alderfer: More than one need can be important at the same
time. If a higher-order need is not being met, the desire to
satisfy a lower-level need increases.
– McClelland: People vary in the types of needs they have.
Their motivation and how well they perform in a work
situation are related to whether they have a need for
achievement, affiliation, or power.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Summary: Impact of Theory
– Maslow: Enjoys wide recognition among practising
managers. Most managers are familiar with it.
– Herzberg: The popularity of giving workers greater
responsibility for planning and controlling their work
can be attributed to his findings. Shows that more than
one need may operate at the same time.
– Alderfer: Seen as a more valid version of the need
hierarchy. Tells us that achievers will be motivated by
jobs that offer personal responsibility, feedback, and
moderate risks.
– McClelland: Tells us that high need achievers do not
necessarily make good managers, since high achievers
are more interested in how they do personally.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Summary: Support and
Criticism of Theory
– Maslow: Research does not generally validate the
theory. In particular, there is little support for the
hierarchical nature of needs. Criticized for how
data were collected and interpreted.
– Herzberg: Not really a theory of motivation:
Assumes a link between satisfaction and
productivity that was not measured or
demonstrated.
– Alderfer: Ignores situational variables.
– McClelland: Mixed empirical support, but theory
is consistent with our knowledge of individual
differences among people. Good empirical
support, particularly on needs achievement.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Process Theories of
Motivation
• Look at the actual process of motivation
– Expectancy theory
– Goal-setting theory
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Expectancy Theory
• The strength of a tendency to act in a certain
way depends on the strength of an expectation
that the act will be followed by a given
outcome and on the attractiveness of that
outcome to the individual.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Expectancy Relationships
• The theory focuses on three relationships:
– Effort-performance relationship
• The perceived probability that exerting a
given amount of effort will lead to
performance.
– Performance-reward relationship
• The degree to which the individual believes
that performing at a particular level will lead
to a desired outcome.
– Rewards-personal goals relationship
• The degree to which organizational rewards
satisfy an individual’s personal goals or needs
and are attractive to the individual.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Exhibit 4-5 How Does
Expectancy Theory Work?
My professor offers me $1 million if I memorize the textbook by tomorrow morning.
Expectancy
Effort
Performance Link
No matter how much effort
I put in, probably not possible
to memorize the text in 24 hours
E=0
Instrumentality
Performance
Rewards Link
My professor does not look
like someone who has $1 million
Valence
Rewards
Personal Goals Link
There are a lot of wonderful things
I could do with $1 million
I=0
V=1
Conclusion: Though I value the reward, I will not be motivated to do this task.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Exhibit 4-6
Steps to Increasing Motivation,
Using Expectancy Theory
Improving Expectancy
Improve the ability of the
individual to perform
• Make sure employees have skills
for the task
• Provide training
• Assign reasonable tasks and goals
Improving Instrumentality
Increase the individual’s belief that
performance will lead to reward
• Observe and recognize performance
• Deliver rewards as promised
• Indicate to employees how previous
good performance led to greater
rewards
Improving Valence
Make sure that the reward is
meaningful to the individual
• Ask employees what rewards they
value
• Give rewards that are valued
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Goal-Setting Theory
• The theory that specific and difficult goals
lead to higher performance.
– Goals tell an employee what needs to be done and how
much effort will need to be expended.
• Specific goals increase performance
• Difficult goals, when accepted, result in higher
performance than do easy goals
• Feedback leads to higher performance than
does nonfeedback.
– Specific hard goals produce a higher level of output
than does the generalized goal of “do your best.”
• The specificity of the goal itself acts as an
internal stimulus.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Management by Objectives
• A program that encompasses
–
–
–
–
Specific goals
Participative decision-making
Explicit time period
Performance feedback
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Responses to the Reward
System
• Equity Theory
• Fair Process
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Equity Theory
• Main points
– Individuals compare their job inputs and
outcomes with those of others and then
respond so as to eliminate any inequities.
– Equity theory recognizes that individuals
are concerned not only with the absolute
amount of rewards for their efforts, but also
with the relationship of this amount to what
others receive.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Exhibit 4-7 Equity Theory
Ratio of Output to Input
Person 1
Person 1’s Perception
Inequity, underrewarded
Person 2
Person 1
Equity
Person 2
Person 1
Inequity, overrewarded
Person 2
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Equity Comparisons
•
•
•
•
Self-inside
Self-outside
Other-inside
Other-outside
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Responses to Inequity
•
•
•
•
•
•
Change Inputs
Change Outcomes
Adjust Perceptions of Self
Adjust Perceptions of Others
Choose a Different Referent
Leave the Field
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Fair Process and Treatment
• Historically, equity theory focused on:
– Distributive justice
• However, equity should also consider
– Procedural justice
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Fair Process
• Distributive Justice
– Perceived fairness of the amount and allocation of
rewards among individuals
• Procedural Justice
– Perceived fairness of the process used to determine
the distribution of rewards
• Interactional Justice
– The quality of the interpersonal treatment
received from another
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Motivating to Show People
Matter
• Employee Recognition Programs
– Programs that use multiple sources and recognizes
both individual and group accomplishments.
• Linking Programs and Reinforcement Theory
– Consistent with reinforcement theory, rewarding a
behaviour with recognition immediately following
that behaviour is likely to encourage its repetition.
• Employee Recognition Programs in Practice
– In contrast to most other motivators, recognizing
an employee’s superior performance often costs
little or no money, making them highly attractive
to industry.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Variable Pay Programs
• A portion of an employee’s pay is based on
some individual and/or organizational
measure(s) of performance.
– Individual-based
• Piece-rate wages, bonuses
• Workers are paid a fixed sum for each unit of
production completed.
– Group-based
• Gainsharing: an incentive plan where
improvements in group productivity
determine the total amount of money that is
allocated.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Variable Pay Programs
– Organizational-based
• Profit-sharing: organization wide programs
that distribute compensation based on some
established formula designed around a
company’s profitability.
• Employee stock ownership plans (ESOPs):
company-established benefit plans in which
employees acquire stock as part of their
benefits.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Exhibit 4-8 Comparing
Various Pay Programs
Approach
Strengths
Weaknesses
Variable
pay
• Motivates for performance.
• Individuals do not always have
control over factors that affect
productivity.
• Cost-effective.
• Makes a clear link between
organizational goals and individual • Earnings vary from year to year.
rewards.
• Can cause unhealthy competition
among employees.
Teambased pay
• Encourages individuals to work
together effectively.
• Difficult to evaluate team
performance sometimes.
• Promotes goal of team-based
work.
• Equity problems could arise if all
members paid equally.
Skill-based • Increases the skill levels of
employees.
pay
• Increases the flexibility of the
workforce.
• Can reduce the number of
employees needed.
• Employers may end up paying for
unneeded skills.
• Employees may not be able to
learn some skills, and thus feel
demotivated.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Variable-Pay Programs
• Linking variable-pay plans and expectancy
theory
– Evidence supports the importance of this linkage,
especially for operative employees working under
piece-rate systems.
– Group and organization wide incentives reinforce
and encourage employees to sublimate personal
goals for the best interests of their department or
organization.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Rewards for Other Types of
Performance
• Commissions beyond sales
– Customer satisfaction and/or sales team outcomes,
such as meeting revenue or profit targets.
• Leadership effectiveness
– Employee satisfaction, or how the manager
handles his or her employees.
• New goals
– All employees who contribute to specific
organizational goals, such as customer satisfaction,
cycle time, or quality measures.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Rewards for Other Types of
Performance
• Knowledge workers in teams
– Performance of knowledge workers and/or
professional employees who work on teams.
• Competency and/or skills
– Abstract knowledge or competencies—for
example, knowledge of technology, the
international business context, customer service,
or social skills.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Motivating Specific Groups
•
•
•
•
•
Professionals
Contingent workers
Low-skilled service workers
Unionized employees
Public sector employees
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Motivating Professionals
• How are “professionals” different?
– Receive a great deal of “intrinsic”
satisfaction from their work.
– Strong and long-term commitment to their
field of expertise
– Well paid/ Chief reward is work itself.
– Value support
– More focused on work as central life
interest.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Motivating Professionals
• How do we motivate professionals?
– Provide challenging projects
– Give them autonomy in follow interests and
structure work.
– Reward with educational opportunities.
– Recognize their contributions.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Motivating Contingent
Workers
• No simple solutions to motivating contingent
workers.
– Contingent or temporary workers have little or no
job security/stability, therefore they don’t identify
with the organization or display the commitment
of permanent employees.
– Contingent or temporary workers are typically
provided with little or no health care, pensions, or
similar benefits.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Motivating Contingent
Workers
• Greatest motivating factor is the
opportunity to gain permanent
employment.
• Motivation is also increased if the
employee sees that the job he or she is
doing for the firm can develop salable
skills.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Motivating Low-Skilled
Service Workers
• Many 15- to 24-year-olds have “McJobs” with
pay levels near minimum wage
• To motivate
–
–
–
–
Employees want more respect
Make jobs more appealing
Raise pay levels
Find unusual ways to motivate:
• Flexible work schedules
• Broader responsibility for inventory,
scheduling, and hiring
• Creation of a “family” atmosphere among
employees
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Motivating Unionized
Employees
• Constraints of contract affect some forms of
rewards
– Some unions against pay-for-performance
• Additional ideas
– Create better work environments
– Show appreciation
– Provide opportunities for training and
advancement
– Listen to employees concerns
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Motivating Public Sector
Employees
• Special challenge
– Much work is service-oriented, harder to
measure productivity
– Hard to link rewards to performance
• What to do
– Goal setting helps
• Goal difficulty and goal specificity
help improve motivation
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Exhibit 4-10
Management Reward Follies
We hope for:
But we reward:
• Teamwork and collaboration
• The best individual team members
• Innovative thinking and risk taking
• Proven methods and no mistakes
• Development of people skills
• Technical achievements and
accomplishments
• Employee involvement and
empowerment
• High achievement
• Long-term growth
• Commitment to total quality
• Candor
• Tight control over operations,
resources
• Another year’s efforts
• Quarterly earnings
• Shipment on schedule, even with
defects
• Reporting good news
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Why Do Managers Engage
in Reward Follies?
• Stuck in old patterns of rewards and
recognition
– Stick to rewarding things that can be easily
measured
• Don’t look at the big picture
– Subunits compete with each other
• Focus on short-term results
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Cross-Cultural Differences in
Motivation
• Canada and US rely on extrinsic
rewards more than other countries
• Japan and Germany rarely use
individual incentives
– Japan emphasizes group rewards
• China more likely to give bonuses to
everyone
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Exhibit 4-11 Snapshots of
Cultural Differences in
Motivation
Japan:Sales representatives preferred being members of a successful
team with shared goals and values, rather than financial rewards.
Russia:Cotton mill employees given either valued extrinsic rewards
(North American T-shirts with logos, children’s sweatpants, tapes of
North American music, etc.) or praise and rewards were more productive.
However, rewards did not help for those who worked on
Saturdays.
China: Bonuses often given to everyone, r egardless of individual
productivity. Many employees expect jobs for life, rather than jobs based
on performance.
Mexico: Employees prefer immediate feedback on their work. Therefore
daily rewards for exceeding quotas are preferred.
Canada and the United States:Managers rely more heavily on extrinsic
motivators.
Japan and Germany:Firms rarely give rewards based on individual
performance.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Are Rewards Overrated?
Cognitive Evaluation Theory
• Allocating extrinsic rewards for
behaviour that had been previously
intrinsically rewarded tends to decrease
the overall level of motivation.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Abolishing Rewards
• Alfie Kohn suggests that organizations should
focus less on rewards, more on creating
motivating environments
–
–
–
–
–
–
Abolish incentives
Re-evaluate evaluation
Create conditions for authentic motivation
Collaboration
Content
Choice
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Summary
• Need Theories
– Be aware that individuals differ in their levels and
types of needs
• Goal Setting Theory
– Clear and difficult goals lead to higher levels of
employee productivity.
• Expectancy Theory
– Offers a relatively powerful explanation of
employee productivity, absenteeism, and turnover.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Summary
• Equity Theory
– Strongest when predicting absence and turnover
behaviours.
– Weakest when predicting differences in employee
productivity.
• Cognitive Evaluation Theory
– When you give extrinsic rewards for behaviour
that had been previously intrinsically rewarded
this can result in a decrease in the overall level of
motivation.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Implications
• Recognize Individual Differences
– Employees have different needs.
– Don’t treat them all alike.
– Spend the time necessary to understand
what’s important to each employee.
• Use Goals and Feedback
• Allow Employees to Participate in
Decisions That Affect Them
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Implications
• Link Rewards to Performance
– Employees must perceive a clear linkage.
• Check the System for Equity
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
OB at Work
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
For Review
1. What are the implications of Theories X and
Y for motivation practices?
2. Identify the variables in expectancy theory.
3. Relate goal-setting theory to the MBO
process. How are they similar? Different?
4. What are the pluses and minuses of variablepay programs from an employee’s viewpoint?
From management’s viewpoint?
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
For Review
5. What is an ESOP? How might it positively
influence employee motivation?
6. What motivates professional employees?
7. What motivates contingent employees?
8. Explain cognitive evaluation theory. How
applicable is it to management practice?
9. What can firms do to create more motivating
environments for their employees?
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
For Critical Thinking
1. Identify three activities you really enjoy. Next,
identify three activities you really dislike. Using
the expectancy model, analyze why some
activities stimulate your effort while others don’t.
2. Identify five different criteria by which
organizations can compensate employees. Based
on your knowledge and experience, is
performance the criterion most used in practice?
Discuss.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
For Critical Thinking
3. “Recognition may be motivational for the moment but it doesn’t
have any staying power. Why? Because they don’t take
recognition at Safeway or The Bay!” Do you agree or disagree?
Discuss.
4. “Performance can’t be measured, so any effort to link pay with
performance is a fantasy. Differences in performance are often
caused by the system, which means the organization ends up
rewarding the circumstances. It’s the same thing as rewarding
the weather forecaster for a pleasant day.” Do you agree or
disagree with this statement? Support your position.
5. Your text argues for recognizing individual differences. It also
suggests paying attention to members of diverse groups. Does
this view contradict the principles of equity theory? Discuss.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
OB at Work
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Breakout Group Exercises
• Form small groups to discuss the following
topics:
1. One of the members of your team continually arrives late for
meetings and does not turn drafts of assignments in on time.
Choose one of the available theories and indicate how the
theory explains the member’s current behaviour and how
the theory could be used to motivate the group member to
perform more responsibly.
2. You are unhappy with the performance of one of your
instructors and would like to encourage the instructor to
present more lively classes. Choose one of the available
theories and indicate how the theory explains the
instructor’s current behaviour. How could you as a student
use the theory to motivate the instructor to present more
lively classes?
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Breakout Group Exercises
3. Harvard University recently changed its grading policy to
recommend to instructors that the average course mark
should be a B. This was the result of a study showing that
more than 50 percent of students were receiving an A or Afor coursework. Harvard students are often referred to as
“the best and the brightest,” and they pay $27 000 (US) for
their education, so they expect high grades. Discuss the
impact of this change in policy on the motivation of Harvard
students to study harder.
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Exhibit 4-12
2002 Compensation of
Canada’s Five Best-Paid CEOs
2002 Compensation of Canada’s Five Best-Paid CEOs
CEO and Company
2002 To tal Compensation
($000’s)
Rank on share return
past 3 years
(out of 150)
1. Jozef Straus
JDS Uniphase Corp.
229 122
148
2. Eugene Melnyk
Biovail Corp.
122 481
28
3. Gerald Schwartz
Onex Corp.
49 266
46
4. Peter C. Godsoe
Scotiabank
20 365
40
5. Firoz A. Rasul
Ballard Power Systems Inc.
19 354
137
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Supplemental Material
Slides for activities I do in my own
classroom
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Exercise on Motivation
Theories
• Jesse has been underperforming at work,
coming in late, and causing some problems
with the other workers. Previously Jesse has
been one of your star employees. Using the
theory assigned to your group, explain what
steps you might take to motivate Jesse to
perform better.
– Describe the plan
– Indicate how the plan relates to the theory
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.
Theories to Apply
• Herzberg Motivation-Hygiene (TwoFactor) Theory
• Expectancy
• Goal-Setting Theory
• Equity
• Cognitive Evaluation Theory
Chapter 4, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright © 2004 Pearson Education Canada Inc.