Understanding Motivation: Key Theories and Goal Setting
School
University of Windsor**We aren't endorsed by this school
Course
MGMT 2400
Subject
Management
Date
Dec 12, 2024
Pages
5
Uploaded by SargentQuailPerson1155
Chapter 7: Motivation 1. Motivation Overview•Definition: Motivation is the set of energetic forces that originates both within and outside an employee. It initiates work-related effort and determines the direction, intensity, and persistence of that effort. •Components of Motivation: oDirection of Effort: What you decide to do at a given moment. oIntensity of Effort: How hard you work on the task. oPersistence of Effort: How long you continue working on the task. 2. Theories of Motivation•Expectancy Theory: This theory explains that employees make decisions about their behavior based on three beliefs: 1.Expectancy (E -> P): The belief that exerting effort will result in successful performance. 2.Instrumentality (P -> O): The belief that successful performance will result in some outcome(s). 3.Valence (V): The value of the outcomes associated with performance (can be positive, negative, or zero). oFormula for motivational force: Motivational Force=Expectancy×Instrumentality×Valence\text{Motivational Force} = Expectancy \times Instrumentality \times ValenceMotivational Force=Expectancy×Instrumentality×Valence 3. Expectancy Factors•Self-efficacy: One’s belief in their ability to perform a task successfully. High self-efficacy leads to greater motivation. oSources of self-efficacy: 1.Past accomplishments2.Vicarious experiences3.Verbal persuasion4.Emotional cues4. Instrumentality (P -> O)•Instrumentality is the belief that performing well will lead to desired outcomes. If employees feel that high performance will not be rewarded, their motivation will decrease. 5. Valence (V)•Valence refers to the value employees place on rewards. Some outcomes have more positive valence when they fulfill critical needs, such as salary, bonuses, promotions, or job security. 6. Needs and Outcomes•Different outcomes fulfill different types of needs: oExistence needs: Physiological and safety-related needs. oRelatedness needs: Social interactions and relationships. oGrowth needs: Personal development and achievement.
•Maslow's Hierarchy of Needs: People are motivated to satisfy basic needs (e.g., food, shelter) before moving on to higher-level needs (e.g., self-actualization). 7. Engagement•Engaged employeesare those who devote themselves fully to their work, showing high levels of intensity and persistence. They are motivated to go the extra mile. 8. Meaning of Money•Money can satisfy basic needs like existence, and also has symbolic value in terms of achievement, respect, and freedom. •Research suggests men are more likely to view money as a representation of achievement and respect compared to women. Goal Setting Theory 1. Goal Setting Theory Overview•Definition: Goals are viewed as the primary drivers of the intensity and persistence of effort. •Key Characteristics: 1.Specific Goals: Provide clear and defined targets for performance. 2.Difficult Goals: Goals that challenge employees lead to higher performance compared to easy goals or “do your best” goals.•Why Specific and Difficult Goals Work: oThey serve as a clear “measuring stick” to gauge effort and performance. oEmployees know exactly what is expected in terms of effort, task difficulty, and timelines. 2. Goal Difficulty and Task Performance•Performance improves as goals become more difficult, but only up to a point (shown in Figure 7-4). oModerate difficulty: Intensity and persistence of effort are maximized. oToo difficult: If the goal becomes impossible, performance drops as individuals feel helpless. 3. Key Factors Influencing Goal Setting: •Feedback: Ongoing information on progress toward the goal is critical. •Task Complexity: More complex tasks require detailed planning and strategies. •Goal Commitment: The degree to which an employee accepts and strives to achieve the goal. 4. Self-Set Goals: •When employees internalize goals as their own (self-set goals), their motivation to achieve those goals increases. oThis leads to higher levels of intensity and persistence in work efforts. Equity Theory
1. Equity Theory Overview•Definition: Motivation is affected by the perceived fairness of rewards compared to the effort and contributions made. •Mental Ledger: Employees maintain a “mental ledger” of the outcomes they receive from their job and compare these to their inputs (effort, skills, performance). •Comparison with Others: Employees compare their ratio of outcomes-to-inputs with a comparison other’s ratio (could be a coworker or industry standard).2. Types of Equity Comparison Outcomes: •Equity: The employee’s outcome-to-input ratio is equal to the comparison other. •Underreward Inequity: The employee’s ratio is lower than the comparison other, leading to feelings of anger or envy. They may seek to increase outcomes (e.g., by asking for a raise) or decrease inputs (e.g., reducing effort). •Overreward Inequity: The employee’s ratio is higher than the comparison other, leading to feelings of guilt. They may increase inputs (e.g., working harder) or use cognitive distortions to justify the higher rewards. 3. Responses to Inequity: •Employees may adjust their behaviors to restore equity, either by changing inputs (effort, task intensity) or seeking changes in outcomes (rewards, compensation). Psychological Empowerment 1. Definition: Psychological empowerment reflects an employee’s intrinsic motivation, rooted in the belief that their work has a larger impact or purpose, and is closely tied to concepts like job satisfaction. 2. Key Components: •Meaningfulness: The value of a work goal aligns with an individual’s ideals. Employees who find their tasks meaningful are more engaged and excited about their work. •Self-Determination: Employees with high levels of self-determination have a sense of control over their work tasks, from choosing what to work on to deciding how long to spend on each task. •Competence: Refers to an employee’s belief that they have the ability to successfully execute their tasks. It ties in with self-efficacy, where employees gain confidence from past accomplishments and feedback. •Impact: The belief that one's actions are making a significant contribution toward the organization’s goals. When employees see progress in their work, they feel a greater sense of impact. Motivation and Its Effects on Job Performance and Organizational Commitment 1. Link Between Motivation and Performance: High motivation is strongly correlated with improved job performance, particularly when employees experience high self-efficacy (belief in their abilities).
•Motivation also positively affects citizenship behavior (going the extra mile at work) and reduces counterproductive behavior (e.g., absenteeism, reduced effort). 2. Link Between Motivation and Commitment: Motivation is linked to organizational commitment, but the relationship is weaker compared to job performance. Employees with high equity (perceived fairness) show higher commitment, especially in terms of affective commitment (emotional attachment to the organization). Compensation Systems and Their Role in Motivation 1. Compensation Plan Elements: •Merit Pay: A common element in compensation systems, though merit pay increases are often modest (e.g., 3.3% for average performers, 5.6% for top performers). •Lump-Sum Bonuses: One-time payments that can be tied to specific performance goals. These bonuses are often preferred over salary increases as they are more flexible for employers and can better reflect specific achievements. •Profit Sharing: A system where employees receive a share of the company’s profits. While it can be motivating, its effect is often weaker since individual employees have little control over company-wide profitability. 2. Challenges to Merit Pay: •Budget constraints, accuracy of performance evaluations, and difficulty in differentiating top performers from average performers can all limit the effectiveness of merit pay. •Forced distribution systems (e.g., ranking employees) can negatively affect team morale and create excessive competition, as seen with companies like Yahoo.