Know the major motivation theories.

Why do people work? What are they working for? The different schools of management have given different answers to this question.

Money Security Belonging, affiliation Growth

Power, Esteem, Responsibility Self actualization

The answers come together in Maslow's hierarchy. The Human Resources school of management focuses on the psychological and motivational needs of people in organizations.

Theories of motivation

1. Content theories of work motivation identify specific needs.

a. Maslow' hierarchy. As a manager, you are motivated to move subordinates up the hierarchy. Why? Does a recession move people down the hierarchy? Why is the shape a pyramid: base largest, top narrow?

b. Alderfer's ERG "simplification" includes "frustration regression". Distinguish from Maslow.

c. Herzberg's two factor theory (hygiene/motivators). The basis of job enrichment design of jobs. Highly influential in leading to the redesign of work. Whereas hygiene (extrinsic to job, environmental) are potentially dissatisfying, motivators (intrinsic, the work itself; recognition, growth, responsibility) are satisfying. Dissatisfaction and satisfaction are not a single continuum.

d. Achievement motivation. (Identify the characteristics of work high achievers seek). Other McCleland motivators.

2. Process theories focus on factors that precede and inform work related motivation and effort and how the factors are interrelated? Note: more abstract, more varied rewards, and more process oriented than content theories. Four best known process theories: expectancy, reinforcement, equity, and goal setting

a. Expectancy Theory: Effort -->Performance--> Reward/punishment-->Satisfaction                        

b. Expectancy Theory asks three questions. Fig 6.7

1. Will effort lead to performance? Expectancy

2. Does performance lead to reward? Instrumentality

3. Do I value the reward?  Valence A valence can be plus, minus or zero.

c. If the answer is "no" to any question, motivation is zero.

d. To explain performance, add in the issues of ability and role perception (not my job!)

e. Note how rational it all is. Are people this rational?

f. Note significance of perception. Worker has to perceive links and rewards.

g. Note how process theories move to a higher level of abstraction that allow the worker and the boss to deal with a multitude of rewards and desires of workers.

h. Note that performance (1st level) precedes reward/punishment satisfaction (2nd level outcome). ( Recall that the Human Relations Hypothesis is that morale/satisfaction leads to performance. Contrast Human Resources School (performance leads to reward/satisfaction) with Human Relations hypothesis.)

i. Managerial strategies: MBO; direct linkages of performance-reward. Why in Japan have they not tried incentive compensation? Why don't they have performance measures?

3. Adams' Equity Theory

a. The model. Social comparison that depends on perception.

b. The importance of the "reference" person or group.

c. Note tension resulting from perceived inequity motivates action to reduce tension.

d. People can adjust their inputs, seek changes in outcomes, alter their perceptions of their reference person, drop out, etc. p. 371

e. Are overpaid workers really more productive? (Study the Figure 9.5. This is what the study concludes.)

Many workers do not know what their managers value. Study after study shows disparities between worker-manager expectations. Goal setting and MBO are supposed to fix this by making expectations transparent. Are you clear about expectations of this class?