Is the perceived likelihood people have that their efforts will enable them to attain their performance goals?

SETTING GOALS
goal-setting theory

- a motivation theory stating that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end
- keeping in mind the principle that goals matter, managers set goals for employees or collaborate with employees on goal setting
- works for any job in which people have control over their performance
- you can set goals for performance quality and quantity, and behavioral goals such as cooperation and teamwork

SETTING GOALS
stretch goals

- targets that are particularly demanding, sometimes even thought to be impossible
- two types :
1. Vertical stretch goals - aligned with current activities including productivity and financial results
2. Horizontal stretch goals - involve people's professional development such as attempting and learning new, difficult things
- stretch goals can generate a major shift away from mediocrity and reword tremendous achievement

REINFORCING PERFORMANCE
law of effect

- a law formulated by Edward Thorndike in stating that behavior that is followed by positive consequences will likely be repeated
- this powerful law of behavior laid the foundation for countless investigations into the effects of the positive consequences, called reinforcers

REINFORCING PERFORMANCE
reinforcers

- positive consequences that motivate behavior

MOTIVATING FOR PERFORMANCE
motivation

- forces that energize, direct, and sustain a person's efforts
- a highly motivated person will work hard toward achieving performance goals
- managers must know what behaviors they want to motivate people to exhibit
- although productive people appear to do a seemingly limitless number of things, which can be grouped into five general categories :
1. Join the organization
2. Remain in the organization
3. Come to work regularly
4. Perform : one employees are at work, they should work hard to achieve high output and high quality.
5. Exhibit good things that can help the company

REINFORCING PERFORMANCE
Four consequences of behavior

1. Positive reinforcement
2. Negative reinforcement
3. Punishment
4. Extinction

REINFORCING PERFORMANCE
organizational behavior modification (OB mod)

- the application of reinforcement theory in organizational settings
- attempts to influence people's behavior, and improve performance, by systematically managing work conditions and the consequences of people's actions

REINFORCING PERFORMANCE
positive reinforcement

- applying consequence that increase the likelihood that a person will repeat the behavior that led to it
- examples of positive reinforcers include compliments, letters of commendation, favorable performance evaluations, and pay raises

REINFORCING PERFORMANCE
punishment

- administering an aversive consequence
- examples include criticizing or shouting at an employee, assigning an unappealing task, and sending a worker home without pay.
- negative reinforcement can involve the threat of punishment and not delivering the punishment when employees perform satisfactorily.
- punishment is the actual delivery of the aversive consequence
- managers use punishment when they think it is warranted or when they believe others expect them to, and they usually concern themselves with following company policy and procedure

REINFORCING PERFORMANCE
The greatest management principle in the world
Should reward what?

1. Solid solutions - instead of quick fixes
2. Risk taking - instead of risk avoiding
3. Applied creativity - instead of mindless conformity
4. Decisive action - instead of paralysis by analysis
5. Smart work - instead of busywork
6. Simplification - instead of needless complication
7. Quietly effective behavior - instead of squeaky wheels
8. Quality work - instead if fast work
9. Loyalty - instead of turnover
10. Working together - instead of working against

REINFORCING PERFORMANCE
extinction

- withdrawing or failing to provide a reinforcing consequence
- when this occurs, motivation is reduced and the behavior is extinguished, or eliminated
- ways that managers may unintentionally extinguish desired behaviors include not giving a compliment for a job well done, forgetting to say thanks for a favor, and setting impossible performance goals so a person never experienced success.
- extinction may be used to end undesirable behaviors, too
- the manager might ignore long-winded observations during a meeting or fail to acknowledge unimportant emails in the hope that the lack of feedback will discourage the employee from continuing

PERFORMANCE-RELATED BELIEFS
expectancy theory

- a theory proposing that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome
- people develop two important beliefs linking these three events : expectancy, which links to performance, and instrumentality, which links performances to outcomes

PERFORMANCE-RELATED BELIEFS
outcome

- a consequence a person receives for his or her performance

PERFORMANCE-RELATED BELIEFS
A person will not be highly motivated if these conditions are present

1. He believes he can't perform well enough to achieve the positive outcomes that he knows the company provides to good performers (high valence and high instrumentality but low expectancy).
2. He knows he can do the job and is fairly certain what the ultimate outcomes will be (say, a promotion and a transfer). However, he doesn't want those outcomes or believes other, negative outcomes outweigh the positive (high expectancy and high instrumentality but low valence).
3. He knows he can do the job and wants several important outcomes (a favorable performance review, a raise, and a promotion). But he believes the outcomes will not be forthcoming (high expectancy and positive valences but low instrumentality).

PERFORMANCE-RELATED BELIEFS
Three implications that influence motivation (expectancy theory)

1. Increase expectancies :
- provide a work environment that facilitates good performance and set realistically attainable performance goals.
- provide training, support, required resources, and encouragement so that people are confident they can perform at the levels expected of them.
2. Identify positively valent outcomes :
- understand what people want to get out of work
- think about what their jobs provide them and what is not, but could be provided.
- consider how people may differ in valences they assign to outcomes
- know the need theories of motivation and their implications for identifying important outcomes
3. Make performance instrumental toward positive outcomes :
- make sure that good performance is followed by personal recognition and praise, favorable performance reviews, pay increases, and other positive results
- also, make sure that working hard and doing things well will have as few negative results as possible
- it is useful to realize, too, that bosses usually have control rewards and punishments, but others do so as well
- peers, direct reports, customers, and others tend to provide rewards in the form of compliments, help, and social punishments

PERFORMANCE-RELATED BELIEFS
instrumentality

- the perceived likelihood that performance will be followed by a particular outcome
- like expectancies, instrumentalities can be high (up to 100 percent) or low (approaching 0 percent)
- for example you can be fully confident that if you do a good job, you'll get a promotion; or you can feel that no matter how well you do, the promotion will go to someone else

PERFORMANCE-RELATED BELIEFS
valence

- the value an outcome holds for the person contemplating it
- valences can be positive or negative

UNDERSTANDING PEOPLE'S NEEDS
McClelland's Needs

- identified the most important needs for managers :
1. Achievement : characterized by a strong orientation toward accomplishment and an obsession with success and goal attainment
2. Affiliation : reflects a strong desire to be liked by other people. Individuals who have high levels of this need are oriented toward getting along with others and may be less concerned with performing at high levels
3. Power : desire to influence on control other people. This need can be a negative force - termed personalized power - if it is expressed through the aggressive manipulation and exploitation of others. People high on the personalized power need want power purely for the pursuit of their own goals. But the need for power also can be a positive motive - called socialized power - because it can be channeled toward the constructive improvement of organizations and societies.

PERFORMANCE-RELATED BELIEFS
expectancy

- employees' perception of the likelihood that their efforts will enable them to attain their performance goals
- all else equal, high expectancies create higher motivation than do low expectancies
- an expectancy can be high (up to 100 percent), such as when a student is confident if she's studies hard, she can get a good grade on the final
- an expectancy can also be low (down to a 0 percent likelihood), such as when a suitor convinced that his dream date will never go out with him

REINFORCING PERFORMANCE
negative reinforcement

- removing or withholding an undesirable consequence
- for example, a manager takes an employee (or school takes a student) off probation because of improved performance

UNDERSTANDING PEOPLE'S NEEDS
Maslow's need hierarchy

- a conception of human needs organizing needs into a hierarchy of five major types
- bottom of pyramid to top :
1. Physiological : food, water, sex, and shelter
2. Safety or security : protection against threat and deprivation
3. Social : friendship, affection, belonging, and love
4. Ego : independence, achievement, freedom, status, recognition, and self-esteem
5. Self-actualization : realizing one's full potential, becoming everything one is capable of being
- people are motivated to satisfy the lower needs before they try to satisfy the higher needs
- Maslow made three important contributions :
1. He identified important need categories, which can help managers create effective positive reinforcers.
2. It is helpful to think of two general levels of needs, in which lower-level needs must be satisfied before higher-level needs become important.
3. Maslow alerted managers to the importance of personal growth and self-actualization

UNDERSTANDING PEOPLE'S NEEDS
Alderfer's ERG theory

- a human needs theory postulating that people have three basic sets of needs that can operate simultaneously
- aims his theory expressly at understanding people's needs at work
- three sets of needs :
1. Existence - are all material and physiological desires
2. Relatedness - involve relationships with other people and are satisfied through the process of mutually sharing thoughts and feelings
3. Growth - motivate people to change themselves or their environment productively or creatively
- Alderfer's maintains that people - particularly working people in our postindustrial society - can be motivated to satisfy existence, relatedness, and growth need at the same time

DESIGNING MOTIVATING JOBS
extrinsic reward

- reward given to a person by the boss, the company, or some other person

DESIGNING MOTIVATING JOBS
intrinsic reward

- reward a worked derives directly from performing the job itself
- an interesting project, an intriguing subject that is fun to study, a completed sale, and the discovery of the perfect solution to a difficult problem all can give people the feeling that they have done something well.
- are essential to the motivation underlying creativity

DESIGNING MOTIVATING JOBS
job rotation

- changing from one task to another to alleviate boredom
- workers who spend all their time in one routine task can instead move from one task to another
- is intended to alleviate boredom by giving people different things to do at different times.

DESIGNING MOTIVATING JOBS
The Hackman and Oldham Model of Job Enrichment

1. They believe they are doing something meaningful because their work is important to other people.
2. They feel personally responsible for how the work turns out.
3. They learn how well they perform their jobs.
- Psychological states that occur when people are working on enriched jobs :
1. Skill variety - different job activities involving several skills and talents
2. Task identity - the completion of a whole, identifiable piece of work
3. Task significance - an important, positive impact on the lives of others
4. Autonomy - independence and discretion in making decisions
5. Feedback - information about job performance; many companies post charts or provide computerized data indicating productivity, number of rejects, and other data

DESIGNING MOTIVATING JOBS
job enlargement

- giving people additional tasks at the same time to alleviate boredom

DESIGNING MOTIVATING JOBS
two-factor theory

- Herzberg's theory describing two factors affecting people's work motivation and satisfaction
- two factors : hygiene factors and motivators
- contributions :
1. Herzberg's theory highlights the important distinction between extrinsic rewards (from hygiene factors) and intrinsic rewards (from motivators)
2. It reminds managers not to count solely on extrinsic rewards to motivate workers but to focus on intrinsic rewards as well
3. It set the stage for later theories, such as the Hackman and Oldham model, that explain more precisely how managers can enrich people's jobs.

DESIGNING MOTIVATING JOBS
job enrichment

- changing a task to make it inherently more rewarding, motivating, and satisfying
- jobs are restructured or redesigned by adding higher levels of responsibility
- this practice includes giving people not only more tasks but higher-level ones, such as when decisions are delegated downward and authority is decentralized

DESIGNING MOTIVATING JOBS
motivators

- factors that make a job more motivating, such as additional job responsibilities, opportunities for personal growth and recognition, and feelings of achievement
- when these factors are present, jobs are presumed to be both satisfying and motivating for most people

DESIGNING MOTIVATING JOBS
growth need strength

- the degree to which individuals want personal and psychological development
- job enrichment would be more successful for people with high growth need strength, but very few people respond negatively to job enrichment

ACHIEVING FAIRNESS
equity theory

- a theory stating that people assess how fairly they have been treated according to two key factors : outcomes and inputs
- outcomes : refer to the various things the person receives on the job such as recognition, pay, benefits, satisfaction, security, job assignments, punishments, and so forth
- inputs : refer to contributions a person makes for an organization such as effort, time, talent, performance, extra commitment, good citizenship, and so forth

ACHIEVING FAIRNESS
procedural justice

- using fair process in decision making and making sure others know that the process was as fair as possible
- when people perceive procedural fairness, they are more likely to support decisions and decision makers
- you can increase people's beliefs that the process was fair by making the process open and visible; stating decision criteria in advance rather that after the fact; making sure that the most appropriate people - those who have valid information and are viewed as trustworthy - make the decisions; giving people a chance to participate in the process; and providing an appeal process that allows people to question decisions safely and receive answers

JOB SATISFACTION
quality of work life (QWL) programs

- programs designed to create a workplace that enhances employee wellbeing
- has eight categories :
1. Adequate and fair compensation
2. A safe and healthy environment
3. Jobs that develop human capacities
4. A chance for personal growth and security
5. A social environment that fosters personal identity, freedom from prejudice, a sense of community, and upward mobility
6. Constitutionalism, or the rights of personal privacy, dissent, and due process
7. A work role that minimizes infringement on personal leisure and family needs
8. Socially responsible organizational actions

JOB SATISFACTION
psychological contract

- a set of perceptions of what employees owe their employers, and what their employees owe them
- experiencing significant breach of psychological contract can also adversely affect both mental and physical health

REVIEW
Identify the kinds of behaviors managers need to motivate in people.

- All important work behaviors are motivated.
- Managers need to motivate employees to join and remain in the organization and to exhibit high attendance, job performance, and citizenship.

REVIEW
List principles for setting goals that motivate employees.

- Goal setting is a powerful motivator.
- Specific, quantifiable, and challenging but attainable goals motivate high effort and performance.
- Goal setting can be used for teams as well as for individuals.
- Care should be taken to avoid setting single goals to the exclusion of other important dimensions of performance.
- Managers also should keep sight of the other potential downsides of goals.

REVIEW
Summarize how to reward good performance effectively.

- Organizational behavior modification programs influence behavior at work by arranging consequences for people's actions.
- Most programs use positive reinforcement as a consequence, but other important consequences are negative reinforcement, punishment, and extinction.
- Care must be taken to reinforce appropriate, not inappropriate, behavior.
- Innovative managers use a wide variety of rewards for good performance.
- They also understand how to manage mistakes and provide useful feedback.

REVIEW
Describe the key beliefs that affect people's motivation.

- Expectancy theory describes three important work-related beliefs.
- Motivation is a function of people's (1) expectancies, or effort-to-performance links; (2) instrumentalities, or performance-to-outcome links; and (3) the valences people attach to the outcomes of performance.
- In addition, people care about equity and justice.

REVIEW
Discuss ways in which people's individual needs affect their behavior.

- According to Maslow, important needs arise at five levels of a hierarchy : physiological, safety, social, ego, and self-actualization needs.
- Focusing more on the context of work, Alderfer's ERG theory describes three sets of needs : existence, relatedness, and growth.
- McClelland says people vary in the extent to which they have needs for achievement, affiliation, and power.
- Because people are inclined to satisfy their various needs, these theories suggest to managers the kinds of rewards that motivate people.

REVIEW
Define ways to create jobs that motivate.

- One approach to satisfying needs and motivating people is to create intrinsic motivation through the improved design of jobs.
- Jobs can be enriched by building in more skill variety, task identity, task significance, autonomy, and feedback.
- Empowerment, the most recent development in the creation of motivating jobs, includes the perceptions of meaning, competence, self-determination, and impact.
- These qualities come from an environment in which people have necessary information, knowledge, power, and rewards.

REVIEW
Summarize how people assess fairness and how to achieve fairness.

- Equity theory states that people compare their inputs and outcomes to the inputs and outcomes of others.
- Perceptions of equity (fairness) are satisfying; feelings of inequity (unfairness) are dissatisfying and motivate people to change their behavior or their perceptions to restore equity.
- In addition to fairness of outcomes, as described in equity theory, fairness is also appraised and managed through procedural justice.

REVIEW
Identify causes and consequences of a satisfied workforce.

- A satisfied workforce has many advantages for the firm, including lower absenteeism and turnover; fewer grievances, lawsuits, and strikes; lower health costs; and higher-quality work.
- One general approach to generating higher satisfaction for people is to implement a quality of life program.
- QWL seeks to provide a safe and healthy environment, opportunity for personal growth, a positive social environment, fair treatment, and other improvements in the people's work lives.
- These and other benefits from the organization, exchanged for contributions from employees, create a psychological contract.
- Over time, how the psychological contract is upheld or violated, and changed unfairly and fairly, will influence people's satisfaction and motivation.

DESIGNING MOTIVATING JOBS
empowerment

- the process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization
- unfortunately, empowerment doesn't always live up to its hype
- one problem is that managers undermine it by sending mixed messages such as "do your own thing - the way we tell you"
- people take more initiative and persevere in achieving their goals and their leader's vision even in the face of obstacles.
- encourages the following beliefs :
1. They perceive meaning in their work; their job fits their values
2. They feel competent, or capable of performing their jobs with skill
3. They have a sense of self-determination, of having some choice in regard to the tasks, methods, and pace of their work.
4. They have impact, they have some influence over important strategic, administrative, or operating decisions or outcomes on the job

DESIGNING MOTIVATING JOBS
hygiene factors

- characteristics of the workplace, such as company policies, working conditions, pay, and supervision, that can make people dissatisfied
- however, no matter how good these factors are, they will not make people truly satisfied or motivated to do a good job

QUIZ
Job enrichment would be more successful for people with :
(A) positive instrumentality
(B) high growth need strength
(C) negative instrumentality
(D) low growth need strength
(E) low valence

ANSWER
(B) high growth need strength

QUIZ
Herzberg's two factor theory highlights the distinction between :
(A) intrinsic and extrinsic rewards
(B) valence and instrumentality
(C) positive and negative reinforcement
(D) job enlargement and job enrichment
(E) socialized power and personalized power

ANSWER
(A) intrinsic and extrinsic rewards

QUIZ
Harry has been promoted because of his hard work. Judy, his colleague, feels that it is unfair and that he does not deserve the promotion. In this case, Judy illustrates _____.
(A) negative valence
(B) negative instrumentality
(C) low valence
(D) low instrumentality
(E) high expectancy

ANSWER
(A) negative valence

QUIZ
According to the expectancy theory, ______ is the link between performance and outcome.
(A) equity
(B) relatedness
(C) instrumentality
(D) expectancy
(E) reinforcement

ANSWER
(C) instrumentality

QUIZ
The goal setting theory states that :
(A) people assess how fairly they have been treated according to two key factors : outcomes and inputs
(B) people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end.
(C) people will behave based on their perceived likelihood that their effort will enable them to attain their performance goals
(D) people will behave based in their perceived likelihood that performance will be followed by a particular outcome
(E) behavior that is followed by positive consequences will likely be repeated

ANSWER
(B) people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end

QUIZ
Motivation for employees can come from an interesting project, a completed sale, or the discovery of a perfect solution, all of which are examples of :
(A) extrinsic rewards
(B) hygiene factors
(C) positive reinforcers
(D) negative reinforcers
(E) intrinsic rewards

ANSWER
(E) intrinsic rewards

QUIZ
Which of the following best describes extinction?
(A) It involves removing or withholding an undesirable consequence.
(B) It is the perceived outlook that performance may be followed by a negative outcome.
(C) It refers to withdrawing or failing to provide a reinforcing consequence.
(D) It involves the aggressive manipulation and exploitation of others.
(E) It refers to administering an aversive consequence.

ANSWER
(C) It refers to withdrawing or failing to provide a reinforcing consequence.

QUIZ
Which of the following best describes motivation?
(A) Withdrawing or failing to provide a reinforcing consequence
(B) A person's work efforts that lead to some level of performance
(C) A consequence of a person's performance
(D) The perceived likelihood that performance will be followed by a particular outcome
(E) Forces that energize, direct, and sustain a person's efforts

ANSWER
(E) Forces that energize, direct, and sustain a person's efforts

QUIZ
Key beliefs in the expectancy theory include expectancy and _______.
(A) instrumentality
(B) relatedness
(C) affiliation
(D) outcomes
(E) inputs

ANSWER
(A) instrumentality

QUIZ
Rachel has been exceeding her targets for the past two months, and therefore her boss decided to give her a bonus. This is an example of ________ reinforcement.
(A) negative
(B) positive
(C) cognitive
(D) affiliative
(E) authoritative

ANSWER
(B) positive reinforcement

QUIZ
Which of the following is one of the eight categories of quality of work life programs?
(A) Family medical leave of absence
(B) On-site wellness center
(C) Fair compensation
(D) Sales incentives
(E) Profit sharing

ANSWER
(C) Fair compensation.

QUIZ
The use of reinforcement or punishment is organizational settings is an integral part of :
(A) management by objectives
(B) organizational behavior modification
(C) employee empowerment programs
(D) quality of work life programs
(E) organizational change management

ANSWER
(B) organizational behavior modification

QUIZ
A psychological contract is described as :
(A) the legal concept that an employee may be terminated for any reason
(B) a set of perceptions of what employees owe their employers, and what their employers owe them
(C) an agreement implying fair treatment of employees without any discrimination in terms of race or gender
(D) a set of conditions of non-disclosure signed by an employee on joking the organization
(E) a set of conditions to ensure the fairness of decisions made by employers

ANSWER
(B) a set of perceptions of what employees owe their employers, and what their employers owe them