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Principles of Management

Dr. Karim Kobeissi Islamic University of Lebanon - 2013


Motivation Concepts

What Is Motivation?
Motivation is the process that account for an individuals intensity, direction, and persistence of effort toward attaining a goal.

Key Elements 1. Intensity: How hard a person tries 2. Direction: Toward beneficial goal 3. Persistence: How long a person tries

What Is Motivation?




I - Early Theories of Motivation

Hierarchy of Needs Theory (Maslow)
There is a hierarchy of five needs: Physiological Needs: includes hunger, thirst, Safety Needs : security and protection from physical and emotional harm. Social Needs : Affection, belonging, friendship.. Esteem Needs : internal factors such as self respect, autonomy, status Self-actualization Needs : The drive to become what one is capable of becoming.

Maslows Hierarchy of Needs

Lower-Order Needs
Needs that are satisfied externally; physiological and safety needs

Higher-Order Needs
Needs that are satisfied internally; social, esteem, and self-actualization needs

Self Esteem

Safety Physiological

Assumptions of Maslows Hierarchy

Movement Up the Pyramid As each need is substantially satisfied, the next need becomes dominant Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied. Maslow Application If you want to motivate someone, you need to

understand what level of the hierarchy that person

is currently on and focus on satisfying the needs at or above that level.

Theory X and Theory Y

Douglas McGregor said that managers hold one of two sets of assumptions about human nature: either Theory X or Theory Y.
Seeing people as irresponsible and lazy, managers who follow Theory X assume the following: 1. Employees inherently dislike work and will try to avoid it. 2. Employees avoid responsibilities and seek formal direction, if possible. 3. Most workers place security above all other work-related factors and will display little ambition.

Since employees dislike work, they must be forced, controlled, or threatened to achieve goals: Authoritarian Management' Style

Theory X and Theory Y (con)

Given that they see people as responsible and careful, managers who follow Theory Y assume the following: 1. Employees can view work as being as natural as rest or play. 2. The average person can learn to accept, even seek, responsibility. 3. Commitment to objectives is a function of rewards associated with their achievement.

Employees will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of punishment: Participative Management Style'

Having Little Ambition

Theory X
Managers See Workers as

Disliking Work Avoiding Responsibility Self-Directed

Theory Y
Managers See Workers as

Enjoying Work Accepting Responsibility

Herzbergs Two-Factor Theory

Bottom Line: Satisfaction and dissatisfaction are not opposites of the same thing! Hygiene
Factors Salary Work Conditions Company Policies

Separate Constructs
Hygiene Factors Extrinsic and Related to Dissatisfaction Motivation Factors Intrinsic and Related to Satisfaction

Motivators Achievement Responsibility


Herzberg Application
When hygiene factors are adequate, people will not be dissatisfied; neither they will be satisfied If we want to motivate people on their jobs, we should stress on the factors that are associated to the work itself or with outcomes directly derived from it, such as promotional opportunities for growth, recognition

Contrasting Views of Satisfaction and Dissatisfaction

David McClellands 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 Affiliation

The desire for friendly and close personal relationships

Need for Power

The need to make others behave in a way that they would not have behaved otherwise

Bottom Line Individuals have different levels of needs in each of these areas, and those levels will drive their behavior and explain how they should be motivated.

Matching High Achievers and Jobs

High achievers are strongly motivated when jobs have a high degree of personal responsibility and feedback and an intermediate degree of risk.

II- Contemporary Theories of Motivation

Cognitive Evaluation Theory
Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation. OB research suggests that people who pursue work goals for intrinsic reasons are more satisfied with their jobs and may perform better Managers need to provide intrinsic rewards (e.g., make the work interesting, provide recognition, support) in addition to extrinsic incentives (e.g. money).

Hint: For this theory, think about how fun it is to read in the summer, but once reading is assigned to you for a grade, you dont want to do it!

Goal-Setting Theory (Edwin Locke)

The goal setting theory is a cognitive approach, proposing that an
individuals purposes direct his behavior.

Basic Premise: specific and difficult goals, with self-generated

feedback, lead to higher performance.

But, the relationship between goals and performance will depend on: Goal commitment I want to do it & I can do it Participation in goal setting will ideally increase commitment.

Task characteristics (simple, well-learned).

National culture1 (Japan Vs Lebanon).

Goal Setting in Action: MBO Programs

Management By Objectives Programs

Based on Goal Setting Theory
The organizations overall objectives are translated into specific objectives for each succeeding level (that is divisional, departmental, individual) in the organization.

Cascading of Objectives

What Is MBO?
Management by Objectives (MBO)
A program that encompasses specific goals, participatively set, for an explicit time period, with feedback on goal progress

Key Elements
1. Goal specificity 2. Participative decision making

3. An explicit time period

4. Performance feedback

Linking MBO and Goal-Setting Theory

MBO Goal-Setting Theory

Goal Specificity
Goal Difficulty Feedback Participation

Yes Yes Yes

Yes Yes No (qualified)

Self-Efficacy Theory
The self efficacy theory refers to an individuals feeling that s/he can perform a task (e.g. I know I can!) Enhances probability that goals will be achieved

Not to be confused with: Self-esteem, which is:

Individuals degree of liking or disliking themselves

Self-Efficacy Theory (con)

Managers can help their employees achieve high levels of self efficacy by bringing together goal setting theory and self efficacy theory.
When a manager sets difficult goals for employees may lead employees to have a higher level of self efficacy and also leads them to set higher goals for their own performance. Research has shown that setting difficult goals for people communicates confidence. For example imagine that your boss sets a high goal for you, and you learn it is higher than the goals she has set for you co-workers. How would you interpret this? As long as you dont feel youre being picked on, you probably would think, Well I guess my boss thinks Im capable of performing better than others. This sets into motion a psychological process where youre more confident in yourself (higher self efficacy), and you set higher personal goals, causing you to perform better.

Self-Efficacy and Goal Setting

Four Ways of Increasing Self-efficacy (Bandura)

1. Enactive Mastery : Gaining relevant experience with the task or job.
2. Vicarious Modeling: Becoming more confident because you see someone else performing the task. Vicarious modeling is most effective when you see yourself similar to the person you are observing. 3. Verbal Persuasion: Becoming more confident because someone persuaded you that you have the skills necessary to perform the task. 4. Arousal: Arousal leads to an energised state, which drives a person to complete a task. The person gets "psyched up" and performs better. But when arousal is not relevant, then arousal hurts performance.

The Humber Rescue team illustrate the importance of enactive mastery in increasing self- efficacy. The River Humber in the North of England is said to be one of the

most dangerous navigable rivers in

the world. Training is vital as it

increase the crews confidence to

succeed in their tasks.

Reinforcement Theory
Argues that behavior is a function of its consequences

Behavior is environmentally caused.
Behavior can be modified (reinforced) by providing (controlling) consequences. Reinforced behavior tends to be repeated.

Equity Theory
Equity Theory
Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities.

Referent Comparisons:
Self-inside: An employees experience in a different position inside his present organization. Self-outside: An employees experience in a different position outside the present organization. Other-inside: Another employee or group of employees inside the employees present organization. Other-outside: Another employee or employees outside the employees present organization.

Equity Theory (con)

Equity Theory (con)

Employees Choices for dealing with inequity:
1. Change inputs (e.g., exert less effort). 2. Change outcomes (e.g., individuals paid on a piece rate basis can increase their pay by producing a higher quantity of units of lower quality). 3. Distort/change perceptions of self 4. Distort/change perceptions of others 5. Choose a different referent person 6. Leave the field (quit the job)

Equity Theory (con)

Propositions relating to inequitable pay:
1. Over-rewarded hourly employees produce more than equitably rewarded employees. 2. Over-rewarded piece work employees produce less, but do higher quality piece work. 3. Under-rewarded hourly employees produce lower quality work. 4. Under-rewarded employees produce larger quantities of lower-quality piece work than equitably rewarded employees.

Expectancy Theory
Currently, one of the most widely accepted explanations of motivation is Victor Vroom's expectancy theory. Essentially, the expectancy theory argues that 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. It includes three variables or relationships: 1. Attractiveness: the importance that the individual places on the potential outcome or reward that can be achieved on the job. This considers the unsatisfied needs of the individual.

2. Performance-reward linkage: the degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome. 3. Effort-performance linkage: the probability perceived by the individual that exerting a given amount of effort will lead to performance.

Expectancy Theory (con)

Bottom Line
All three links between the boxes must be intact or motivation will not occur. Thus,
Individuals must feel that if they try, they can perform and If they perform, they will be rewarded and When they are rewarded, the reward will be something they care about.

Putting It All Together