Amy Wojciechowski

MOTIVATION

1. WHAT IS MOTIVATION?
   1. Most often, motivation is the term used to explain people's behavior. Successful athletes are said to be highly motivated. A student who avoids work is said to be unmotivated.
   2. Motivation is the individual, internal process that energizes, directs, and sustains behavior. It is a personal "force" that causes one to behave in a particular way.
   3. Morale is the employee's feeling toward the job, superiors, and the firm itself
      1. High morale results mainly from the satisfaction of needs on the job or as a result of the job.
      2. High morale leads to dedication and loyalty as well as to the desire to do a job well.
      3. Low morale can lead to shoddy work, absenteeism, and high rates of turnover.
   4. Motivation, morale, and the satisfaction of employees' needs are thus intertwined.
2. HISTORICAL PERSPECTIVES ON MOTIVATION
   1. Scientific Management. During the early part of the twentieth century, Frederick W. Taylor became interested in improving the efficiency of individual workers.
      1. Taylor's interest stemmed from his own experiences in manufacturing plants.
      2. His research eventually led to scientific management, the application of scientific principles to management of work and workers.
         1. One of Taylor's first jobs was with the Midvale Steel Company. While there, he developed a strong distaste for waste and inefficiency.
         2. Workers at Midvale "soldiered," or worked slowly, because they feared if they worked faster they would run out of work and lose their jobs.
      3. Taylor later left Midvale and spent several years at Bethlehem Steel. There he made his most significant contribution. In particular, he suggested that each job should be broken down into separate tasks. His other recommendations included the following:
         1. Management should determine the best way to perform the tasks.
         2. Management should determine the job output to expect when the tasks were performed properly.
         3. Management should carefully choose the best person for each job and train that person to do the job properly.
         4. Finally, management should cooperate with workers to ensure that all jobs are performed as planned.
      4. Taylor also developed the idea that most people work only to earn money.
         1. He reasoned that pay should be tied directly to output: The more a person produces, the more he or she should be paid.
         2. This concept gave rise to the piece-rate system, under which employees are paid a certain amount for each unit of output they produce.
         3. Under Taylor's piece-rate system, each employee was assigned an output quota. Those exceeding the quota were paid a higher per-unit rate for all units they produced. (See Figure 9. 1.)
      5. Taylor's system was put into practice at Bethlehem Steel, and the results were dramatic.
      6. Taylor's ideas were revolutionary and had a profound impact on management practice. However, his view of motivation was overly simplistic and narrow, inasmuch as people work for a variety of reasons other than pay.
   2. The Hawthorne Studies. Between 1927 and 1932, two experiments were conducted by Elton Mayo at the Hawthorne plant of the Western Electric Company in Chicago.
      1. The original objective of these studies, now referred to as the Hawthome Studies, was to determine the effects of the work environment on employee productivity.
      2. In the first set of experiments, lighting in the workplace was varied for one group of workers but not for a second group. Then the productivity of both groups was measured to determine the effect of the variations in light.
         1. Productivity increased for both groups.
         2. For the group whose lighting was varied, productivity remained high until the light was reduced to the level of moonlight.
      3. The second set of experiments focused on the effectiveness of the piece-rate system in increasing the output of groups of workers.
         1. Researchers expected that output would increase because faster workers would put pressure on slower workers to produce more.
         2. However, output remained constant, no matter what standard" rates management set.
      4. The researchers concluded that human factors were responsible for the results of the two experiments.
         1. In the lighting experiments, researchers had given both groups of workers a sense of involvement in their jobs merely by asking them to participate in the research.
         2. In the piece-rate experiments, each group of workers informally set the acceptable rate of output for the group. To gain the social acceptance of the group, each worker had to produce at that rate. Slower or faster workers were pressured to maintain the group's pace.
      5. The Hawthorne Studies demonstrated that such human factors are at least as important as pay rates are to motivation.
   3. Maslow's Hierarchy of Needs. The concept of a hierarchy of needs was advanced by Abraham Maslow, a psychologist. Maslow assumed that humans are "wanting" beings who seek to fulfill a variety of needs. He assumed that these needs can be arranged according to their importance in a sequence known as Maslow's hierarchy of needs. (See Figure 9.2.)
      1. At the most basic level are physiological needs, the things we require to survive. These needs include food and water, clothing, shelter, and sleep.
      2. At the next level are safety needs, the things we require for physical and emotional security. They may be satisfied through job security, health insurance, pension plans, and safe working conditions.
      3. Next are the social needs, the human requirements for love, affection, and a sense of belonging. To an extent, these needs can be satisfied through the work environment and the informal organization. But they also include relationships beyond the workplace.
      4. Esteem needs include the need for respect and recognition (the esteem of others) as well as a sense of accomplishment and worth (self-esteem). These needs may be satisfied through personal accomplishment, promotion to more responsible jobs, various honors and awards, and other forms of recognition.
      5. At the uppermost level are self-actualization needs, the needs to grow and develop as people and to become all that we are capable of being. These are the most difficult needs to satisfy, and the means of satisfying them tend to vary with the individual.
      6. Maslow suggested that people work to satisfy their physiological needs first, their safety needs next, and so on up the "needs ladder."
         1. In general, people are motivated by the needs at the lowest (most important) level that remain unsatisfied.
         2. However, needs at one level do not have to be completely satisfied before needs at the next-higher level come into play.
         3. Maslow's hierarchy of needs provides a useful way of viewing employee motivation as well as a guide for management. By and large, American business has been able to satisfy workers' basic needs, but the higher-order needs present more of a problem.
   4. Herzberg's Motivation-Hygiene Theory. In the later 1950s, Frederick Herzberg interviewed approximately 200 accountants and engineers in Pittsburgh.
      1. During the interviews, he asked them to think of a time when they had felt especially good about their jobs and their work.
      2. Then he asked them to describe the factor or factors that had caused them to feel that way.
      3. Next, he did the same regarding a time when they had felt especially bad about their work.
      4. He found that feeling good and feeling bad resulted from entirely different sets of factors.
      5. Satisfaction and Dissatisfaction. Herzberg's interviews convinced him that satisfaction and dissatisfaction may be different dimensions altogether.
         1. The idea that satisfaction and dissatisfaction are separate and distinct dimensions is referred to as the motivation hygiene theory. (See Figure 9.3.)
         2. The job factors that Herzberg found most frequently associated with satisfaction are achievement, recognition, responsibility, advancement, growth, and the work itself. These factors are generally referred to as motivation factors because their presence increases motivation. However, their absence does not necessarily result in feelings of dissatisfaction.
         3. Job factors cited as causing dissatisfaction are supervision, working conditions, interpersonal relationships, pay, job security, and company policies and administration. These hygiene factors reduce dissatisfaction when they are present to an acceptable degree. However, they do not necessarily result in high levels of motivation.
      6. Using Herzberg's Motivation-Hygiene Theory. Herzberg provides explicit guidelines for using the motivation-hygiene theory of employee motivation.
         1. He suggests that the hygiene factors must be present to ensure that a worker can function comfortably. But he warns that a state of no dissatisfaction never exists.
         2. Managers should make hygiene as good as possible but should then expect only short-term improvement in motivation.
         3. Managers must work to provide the motivation factors, which will presumably enhance motivation and long-term effort.
         4. Employee pay has more effect than is explained by Herzberg's theory.
   5. Theory X and Theory Y. The concepts of Theory X and Theory Y were advanced by Douglas McGregor in his 1960 book, The Human Side of Enterprise. They are, in reality, sets of assumptions that underlie management's attitudes and beliefs regarding worker behavior.
      1. Theory X is a concept of employee motivation generally consistent with Taylor's scientific management. The basic assumptions of Theory X include the following:
         1. People dislike work and try to avoid it.
         2. Because people dislike work, managers must coerce, control, and frequently threaten employees to achieve organizational goals.
         3. People generally must be led because they have little ambition and will not seek responsibility. They are concerned mainly with security.
      2. Theory Y is a concept of employee motivation generally consistent with the ideas of the human relations movement. The basic assumptions of Theory Y include the following:
         1. People do not naturally dislike work. In fact, work is an important part of their lives.
         2. People will work toward goals to which they are committed.
         3. People become committed to goals when it is clear that accomplishing the goal will bring personal rewards.
         4. People often seek out and willingly-
         5. Employees have the potential to help accomplish organizational goals.
         6. Organizations generally do not make full use of their human resources.
      3. McGregor argued that most managers behave in accordance with Theory X. But he maintained that Theory Y is more appropriate and effective as a guide for managerial action. (See Table 9. 1.)
   6. Theory Z. In the 1970s, William Ouchi, a management professor at UCLA, began to study business practices in United States and Japanese firms.
      1. In Japan, Ouchi found what he calls Type J firms. They are characterized by:
         1. lifetime employment for employees
         2. collective (or group) decision making
         3. collective responsibility for the outcomes of decisions
         4. slow evaluation and promotion
         5. implied control mechanisms
         6. nonspecialized career paths
         7. a holistic concern for employees as people
      2. American industry is dominated by what Ouchi calls Type A firms. These firms are characterized by
         1. short-term employment
         2. individual decision making
         3. individual responsibility for the outcomes of decisions
         4. rapid evaluation and promotion
         5. explicit control mechanisms
         6. specialized career paths
         7. a segmented concern for employees only as employees
      3. A few very successful American firms represent a blend of the Type J and Type A patterns. These Type Z organizations emphasize
         1. long-term employment
         2. collective decision making
         3. individual responsibility for the outcomes of decisions
         4. slow evaluation and promotion
         5. informal control along with some formalized measures
         6. moderately specialized career paths
         7. a holistic concern for employees
      4. Theory Z is the belief that some middle ground between Ouchi's Type A and Type J practices is best for American business. (See Figure 9.4.)
   7. Reinforcement Theory. Reinforcement theory is based on the premise that behavior that is rewarded is likely to be repeated, whereas behavior that has been punished is less likely to recur.
      1. Kinds of Reinforcement. A reinforcement is an action that follows directly from a particular behavior. Reinforcements can take a variety of forms and can be used in a number of different ways.
         1. A positive reinforcement strengthens desired behavior by providing a reward.
         2. A negative reinforcement strengthens desired behavior by eliminating an undesirable task or situation.
         3. Punishment is an undesired consequence that follows from undesirable behavior.
         4. Managers who rely on extinction hope to eliminate undesirable behavior by ignoring it.
      2. Using Reinforcement. The effectiveness of reinforcement depends on which type is used and how it is timed.
         1. Generally, positive reinforcement is considered the most effective action, and it is recommended when the manager has a choice.
         2. Continual, repetitious reinforcement can become tedious for both managers and employees, especially when the same behavior is being reinforced over and over in the same way.
3. CONTEMPORARY VIEWS ON MOTIVATION
   1. In recent years, managers have begun to explore four other models that take a more dynamic view of motivation: equity theory, expectancy theory, reinforcement theory, and Theory Z.
   2. Equity Theory. The equity theory of motivation is based on the premise that people are motivated first to achieve and then to maintain a sense of equity.
      1. As used here, equity refers to the distribution of rewards in direct proportion to the contribution of each employee to the organization.
      2. Everyone need not receive the same rewards, but the rewards should be in accordance with individual contributions.
      3. According to the theory, we tend to implement the idea of equity as follows.
         1. First, we develop an input-to-outcome ratio. Inputs are the things we contribute to the organization. Outcomes are the things we get from the organization.
         2. Next, we compare this ratio with what we perceive as the input-to-outcome ratio for some other person, called the comparison other."
         3. If the two ratios are roughly the same, we feel that the organization is treating us equitably and are motivated to leave things as they are.
         4. If our ratio is the lower of the two, we feel under rewarded and are motivated to change things. We may
            1. decrease our own inputs by not working so hard.
            2. try to increase our total outcomes by asking for a raise in pay.
            3. try to get the comparison other to increase some inputs or receive decreased outcomes.
            4. leave the work situation.
            5. do a new comparison with a different comparison other.
      4. Equity theory is most relevant to pay as an outcome.
   3. Expectancy Theory. Expectancy theory, developed by Victor Vroom is a very complex model of motivation that is based on a simple assumption. According to expectancy theory, motivation depends on how much we want something and on how likely we are to get it. (See Figure 9.5.)
      1. Consider three sales representatives who are candidates for promotion to one sales manager's job.
         1. Bill has had a very good sales year and always gets good performance evaluations. But he isn't sure he wants the job because it requires a great deal of travel, long working hours, and much stress and pressure.
         2. Paul wants the job but he doesn't think he has much chance of getting it. He has had a terrible sales year and gets only mediocre performance evaluations from his present boss.
         3. Susan wants the job as much as Paul, and she thinks she has a good chance of getting it. Her sales have improved significantly this past year, and her evaluations are the best in the company.
         4. Expectancy theory would predict that Bill and Paul are not very motivated to seek the promotion. But Susan is very motivated to seek the promotion, because she wants it and thinks she can get it.
      2. Expectancy theory is complex because each action we take is likely to lead to several different outcomes, some that we may want and others that we may not want. For example, if people work hard and put in a lot of extra hours, several things may happen.
         1. They may get a pay raise.
         2. They may be promoted.
         3. They may gain valuable new job skills.
         4. They may have less time to spend with their families.
         5. They may have to cut back on their social life.
      3. Expectancy theory is difficult to apply, but it does provide several useful guidelines for managers. It suggests that managers must recognize the following:
         1. Employees work for a variety of reasons.
         2. These reasons, or expected outcomes, may change over time.
         3. It is necessary to clearly show employees how they can attain the outcomes they desire.
   4. Goal-Setting Theory. Goal-setting theory suggests that employees are motivated to achieve goals they establish together with managers.
      1. There are three requirements for the goals that are set.
         1. They should be specific.
         2. They should be moderately difficult.
         3. They should be goals that the employee will commit to achieve.
      2. Employee rewards should be tied to goal achievement.
      3. There are several benefits of using goal-setting theory.
         1. It allows managers to design rewards that fit employee needs.
         2. It clarifies expectations.
         3. It maintains equity.
         4. It provides reinforcement.
4. KEY MOTIVATION TECHNIQUES
   1. Management by Objectives. Management by objectives (MBO) is a motivation process in which managers and employees collaborate in setting goals.
      1. The primary purpose of MBO is to clarify the roles that the employees are expected to play in reaching the organization's goals. MBO allows subordinates to participate in goal setting and in performance- evaluation.
      2. Most MBO programs consist of five steps. (See Figure 9.6)
         1. The first step is to secure the acceptance of top management.
         2. Next, preliminary goals must be established.
         3. In the third step, manager and employee establish goals for the employee.
         4. Fourth, the manager and each employee meet periodically to review the employee's progress.
         5. The fifth step is evaluation.
      3. Like many other management methods, MBO has advantages and disadvantages.
         1. MBO can motivate employees by involving them in the MBO process. Also, communication is improved within the firm.
         2. A major problem with MBO is that it does not work unless the process begins at the top of the organization. In some cases, MBO results in excessive paperwork. Finally, some managers have difficulty sitting down and working out goals with their employees.
   2. Job Enrichment. Job enrichment is an attempt to provide workers with variety in their tasks. It gives them some responsibility for, and control over, their jobs.
      1. Job enlargement, which means expanding a worker's assignments to include additional but similar tasks, can lead to job enrichment.
      2. Job redesign is a type of job enrichment in which work is restructured in ways that cultivate the worker-job match.
   3. Behavior Modification. Behavior modification is the use of a systematic program of reinforcement to encourage desirable behavior. Specific steps include the following:
      1. The target behavior-the behavior that is to be changed-is identified.
      2. Existing levels of this behavior are then measured.
      3. Next, managers provide positive reinforcement.
      4. Finally, levels of the target behavior are measured again, to determine whether the desired changes have been achieved.
   4. Flextime. Flextime is a system in which employees set their own work hours within certain limits set by employers. Typically the firm establishes two bands of time:
      1. Core time is when all employees must be at work.
      2. Flexible time is the time employees may choose whether to be at work.
   5. Part-Time Work and Job Sharing
      1. Part-time work is permanent employment in which individuals work less than a standard workweek.
      2. Job sharing is an arrangement whereby two people share one full-time position.
         1. For the workers, job sharing provides the security of a permanent job along with the flexibility of a part-time job.
         2. For firms, job sharing provides an opportunity to attract highly skilled employees who might not be available on a full-time basis.
         3. Job sharing is difficult if tasks aren't easily divisible.
   6. Telecommuting. A growing number of companies allow telecommuting-working at home all of the time or for a portion of the workweek.
      1. Because there is less travel time and fewer distractions, many telecommuters report increased productivity.
      2. Reported disadvantages of telecommuting include feelings of isolation, putting in longer hours, and being distracted by family responsibilities.
   7. Employee Empowerment. Empowerment means giving employees greater involvement in their jobs and in the operations of the organization by increasing their participation in decision making.
      1. For empowerment to work effectively, management must be involved and perform the following functions.
         1. Set expectations.
         2. Communicate standards.
         3. Institute periodic evaluations.
         4. Guarantee follow-up.
      2. Advantages of employee empowerment include increased job satisfaction; improved job performance; higher quality output; increased organizational commitment; lower turnover; and lower use of sick leave.
      3. Obstacles to empowerment can include resistance on the part of management; distrust of management on the part of workers; insufficient training; and poor communication between management and employees.
   8. Self-Managed Work Teams. One of the ways in which organizations are increasing employee motivation is through the use of self-managed work teams, groups of employees with the authority and skills to manage them.
      1. To make the most effective use of teams, it is essential that organizations are committed to the team approach, that team objectives are clear, that training and education is ongoing, and that compensation rewards team-based goals.
      2. Gain sharing is a compensation method in which employee bonuses are tied to achievement of team goals such as increased sales or productivity, or improved customer satisfaction.
      3. When correctly implemented, use of teams can lead to higher employee morale, increased productivity, and innovation.
      4. Although the work team strategy is increasingly popular, it is not without problems.
         1. Lack of support from managers and supervisors can minimize or eliminate potential benefits.
         2. Companies must be prepared for an initial increase in costs for training and implementation.
   9. Employee Ownership. Some organizations are discovering that an effective technique for motivating employees is to let them own the company.
      1. Employee-owned businesses directly reward employees for success. When the company benefits from increased sales or lower costs, employees benefit directly.
      2. Employee stock ownership plans (ESOPs) have been shown to provide considerable employee incentive and increase employee involvement.