MGMT

1110
Introduc/on to Management
Topic 7 Mo/va/on

To learn more about this topic, read Chapters 12 and 16 of the textbook

MGMT 1110 course outline:

The External Environment

The Internal
Environment

Topic 2: Managing the

external environment

Topic 4:
Decision making

Topic 1: Founda/ons
and history of
management

Topic 3:
Organiza/onal
culture

The Manager
Planning

Topic 5: Planning
and strategy
Controlling

Topic 9:
Controlling

Leading

Topic 6:
Organiza/onal
structure

Organizing

Topic 7: Mo*va*on
Topic 8: Leadership

Topic 7: Mo/va/on
What is mo/va/on?
Mo/va/on theories:
Maslows hierarchy of
needs;
Goal-seWng theory
Job characteris/cs model
Equity theory
Expectancy theory
Recent research on intrinsic
and extrinsic mo/va/on

Mo/va/on
In the leading func/on, managers work with and through people to
accomplish goals. One ac/vity in leading is to mo/vate employees.
The term mo#va#on comes from the La/n word movere, which
means to move
Mo/va/ng is the process by which a person's eorts are energized,
directed, and sustained toward aaaining a goal

Why do we care about mo/va/on?

Maslows hierarchy of
needs theory

Self-
actualiza*on
Needs

Desires for growth, achieving

ones full poten/al, becoming
what one is capable of
becoming

Esteem Needs
Desires for a posi/ve
self-image and to receive
recogni/on from others
Belongingness/Social Needs
Desires to be accepted by peers, have
friendship, be part of a group
Safety Needs
Desires for security, protec/on from physical and
emo/onal harm
Physiological Needs
Basic human physical needs including needs for food, drink, shelter, etc.
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How organiza#ons mo#vate

employees with Maslows
hierarchy of needs?
Self-actualiza*on needs

provide training and

development opportuni/es

Esteem needs promo/on

(beaer /tles), award and
recogni/ons (e.g. merit pay rises)
Belongingness/Social needs create a
family-like organiza/onal culture, organize
social func/ons (e.g. company picnics)
Safety needs safe working condi/ons, job security,
medical benets
Physiological needs adequate salary that enables people to buy
food and clothing and have shelter

Assump*ons in Maslows Hierarchy of Needs

1.Lower-level needs take priority. People will not be
mo/vated to sa/sfy higher-level needs (e.g. esteem
and self-actualiza/on needs) unless the lower-level
needs (e.g. physiological and security needs) have
been at least minimally sa/sed.
2.Only unmet needs mo#vate. Sa/sed needs will no
longer mo/vate. To mo/vate a person, we need to
know at what level that person is on the hierarchy.

Mo#va#ng Gen-Y in HK
In the coming decades, Genera/on Y (born 1980-1994) will become
the major workforce.
A survey indicated that when Gen Y in Hong Kong choose a job or
decide whether to stay in a job:
Most important factor: Monetary compensa/on and benets
2nd: Clear and achievable career pathway
3rd: Interest and meaningful work

Source: Cash comes rst when the young look for work, South China Morning Post, August 21, 2012

Goal-se6ng theory
Central thesis:
Assigning employees a goal would make their performance beLer.
Goals direct aaen/on and
eort toward goal-relevant
ac/vi/es and away from
goal-irrelevant ac/vi/es.

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Reducing the
goal-performance
discrepancy leads to a sense
of accomplishment.

For decades, goal-seWng research has focused on the impact of

challenging and specic goals versus vague goals on job performance

Vague goal:

Do your best!

Specic and
You need to get an
challenging goal: A in this course!

Mixed ndings emerged.

Thus researchers looked into con/ngency factors

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Performance goal
A performance goal frames the
instruc/ons so that an employees
focus is on task performance
e.g. aaain 20% market share by
the end of the next scal year
A specic, challenging
performance goal directs
aaen/on to the exer/on of eort
and persistence required to
achieve it.

Learning goal
A learning goal frames the
instruc/on in terms of knowledge
or skill acquisi/on
e.g. discover 3 eec/ve strategies
to increase market share
A specic, challenging learning goal
draws aaen/on away from the end
result. The focus is on the discovery
of eec/ve task processes.

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As a manager, should I set a performance goal or a learning goal for

my employees?
It depends!
When tasks are simple and the employee has mastered the required
knowledge and skills to perform well, a specic and challenging
performance goal is preferred.
____________
When tasks are complex and explora#on of means is needed, a
learning
specic and challenging ____________
goal is preferred.

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Goal commitment
A challenging and specic goal has larger impact when employees are
commiaed to the goal.
To enhance peoples commitment to goals managers should
Make sure that the assigned goal is seen by employees as realis/c
and achievable
Set the goals in consulta/on with employees

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Job characteris/cs model

The Job Characteris/cs Model (JCM) proposes ve core job dimensions:
Skill variety: The degree to which a job requires a variety of ac/vi/es
so that an employee can use dierent skills and talents

15

Task iden*ty: The degree to which a job requires

comple/on of a whole and iden/able piece of work

16

Task signicance: The degree to which a job has a substan/al

impact on other peoples well-being

17

Autonomy: The degree to which employees have substan/al

freedom in scheduling the work and determining the
procedures to be used in carrying out the work
Predetermined
syllabus & list of
class ac/vi/es

18

Feedback: The degree to which employees can obtain direct

and clear informa/on about how well they are doing

19

Job characteris/cs model (JCM) suggests that employees are likely to be

mo/vated when they learn that they personally performed well on tasks
that they care about

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There are two types of TA jobs at HKUST

Tutors
Manage student record and LMES

Instruc/onal assistants
Manage student record and LMES

Conduct tutorials (prepare tutorial

notes, design tutorial ac/vi/es, as a
result receive a formal teaching
evalua/on from students)

Exam invigila/on

Student project advisor

Assist in seWng exam ques/ons and
grading guidelines
Exam invigila/on

Script marker - MC & short

ques/ons (mark the scripts
according to pre-established
guidelines)

Script marker - everything (MC, short

ques/ons, essay)

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Compare the 2 types of TA job using the Job Characteris#cs Model

Tutor

IA

Skill Variety

Task Iden#ty

Task Signicance

Autonomy

Feedback

Mo#va#ng Poten#al
= higher

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Use the scales below to indicate whether each statement is an accurate or inadequate
descrip#on of your present or most recent job.
5 = very descrip#ve
4 = mostly descrip#ve
3 = somewhat descrip#ve
2 = mostly non-descrip#ve
1 = very non-descrip#ve
____

____
____

____
____
____
____

____
____

____

1. I have a chance to do a number of dierent tasks, using a wide variety of

dierent skills and talents.
2. I get to use a number of complex skills on this job.
3. I do a complete task from start to nish. The results of my eorts are
clearly visible and iden/able.
4. My job provides me with the chance to nish completely any work I start.
5. Many people are aected by the job I do.
6. What I do aects the well-being of other people in very important ways.
7. I have almost complete responsibility for deciding how and when the
work is to be done.
8. My job gives me considerable freedom in doing the work.
9. Just doing the work provides me with opportuni/es to gure out how
well I am doing.
10. My manager provides me with constant feedback about how I am doing.

Source: Adapted from Hackman and Oldham (1980), Work Redesign.

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Skill variety (items #1-2)

Task iden/ty (items #3-4)
Task signicance (items #5-6)
Autonomy (items #7-8)
Feedback (items #9-10)

Mo/va/ng Poten/al Score =

= ( ___+___ ) /2 = ____
= ( ___+___ ) /2 = ____
= ( ___+___ ) /2 = ____
= ( ___+___ ) /2 = ____
= ( ___+___ ) /2 = ____

Skill variety + Task iden/ty + Task signicance

3

X Autonomy X Feedback

Mo/va/ng Poten/al Score of your job = ______________

What could be done to increase the mo#va#ng poten#al of your job?
The JCM provides guidance to managers for job design by improving
the 5 core job dimensions.

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A few ways to redesign a job to increase its mo*va*ng poten*al:

v Job enlargement the horizontal expansion of a job by increasing job
scope
Increase skill variety
Might increase task iden/ty if new tasks can form an iden/able
and meaningful whole
v Job enrichment the ver#cal expansion of a job by adding planning
and evalua#ng responsibility
Increase skill variety
More autonomy
Opportunity for self-feedback
v Establish external and internal client rela#onships to provide feedback
Let clients talk about how they are inuenced by employees
work; increase task signicance
More feedback
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Equity Theory
Equity theory proposes that
Employees perceive what people get from a job situa/on (outcomes) in
rela/on to what they put in (inputs)
Then compare their outcomes-to-inputs ra/o with the outcomes-to-
inputs ra/os of referents
They would be mo/vated when the ra/os are perceived as equal (i.e.
when a state of equity/fairness exists)
Referents e.g. a coworker, group of
employees from same or dierent organiza/ons,
or even a hypothe/cal situa/on
Inputs e.g. eorts,
/me, experience,
knowledge, skills

Outcomes e.g. pay,

benets, recogni/on,
promo/ons, personal
growth
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Consider the following scenario

Input
Time and eort
(rou/ne data entry job)
You

Input
Time and eort
(SAME rou/ne data entry
job)
Amy

Outcome
$50/hour

Outcome
$90/hour

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28

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Reac/ng to inequality:
Change inputs

e.g. dont exert as much eort as before when feeling

under-rewarded

Change outcomes

e.g. ask for pay increase when feeling under-rewarded

Change reference
group

e.g. make comparisons with employees in a lower-

ranked company (those people usually have lower
pay)

Leave the situa/on

e.g. quit the job

Alter self-
percep/ons

e.g. I used to think I worked really hard but now I

realize maybe I am not as hardworking as John

Alter percep/ons of e.g. Mikes job is not as enjoyable as I previously

reference group
thought it was
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Applying equity theory to management

To increase workers mo/va/on level, managers should:
Establish unbiased reward-alloca/on procedures, and
follow them consistently
Openly share informa/on on how reward-alloca/on
decisions are made
With these prac/ces, employees are likely to
view their bosses and organiza/ons in
favorable terms even if theyre dissa/sed with
the absolute level of pay or other outcomes

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Expectancy Theory
Expectancy theory suggests that mo/va/on is high when workers believe that
high levels of eort will lead to high performance and high performance will
lead to the a9ainment of desired outcomes.
Valence:

Aarac/veness of
reward

Individual
eort

Individual
performance

Expectancy:

Eort-performance
linkage

Organiza/onal
rewards

instrumentality:

Performance-reward
linkage

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Consider the following scenarios

You believe that regardless of
how hard you study, you will
s/ll fail MGMT1110 exam.
Would you be
mo/vated to
study hard?

You believe that if you study

hard, you will get high score in
MGMT1110 exam.
Would you be mo/vated to
study hard?

Expectancy is a persons percep/on about the extent to which high levels

of eort will lead to high performance.
People are mo/vated only if expectancy is high.
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Now, you believe that if you study hard, you will get high score in
MGMT1110 exam (i.e. high expectancy)
But then, you think even geWng
high exam score would not lead
you to get an A in MGMT1110.
Would you be mo/vated to study
hard?

You think that geWng high exam

score would lead you to get an A
in MGMT1110.
Would you be mo/vated to study
hard?

Instrumentality refers to belief that high performance will result in geWng

the reward (high performance is instrumental for obtaining reward).
People are mo/vated only if instrumentality is high.
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Now, you believe that if you study hard, you will get high score in
MGMT1110 exam (i.e. high expectancy)
You also believe that geWng high exam score would lead you to get an
A in MGMT1110 (i.e. high instrumentality)
BUT, to you, enjoying student
society ac/vi/es is most
important
Would you be mo/vated to
study hard?

To you, geWng good grades

and being on the Deans list is
your top priority
Would you be mo/vated to
study hard?

Valence refers to the value a person places on the reward.

People are mo/vated only if valence is high.
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Applying the expectancy theory

To increase workers mo/va/on level,
managers should:
1. Convince your employees that they
are capable of achieving the
performance requirement (via
training or showing role models).
2. Tie performance to rewards (e.g.
merit pay system).
3. Be sure rewards are of value to
employees.
How? One op/on is the exible
benet plan.
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Recent research on
intrinsic and extrinsic mo/va/on
Intrinsic mo@va@on: Mo/va/on that comes from
performing the work itself; the desired outcome is
in/mately connected to the work itself.
E.g. A scien/st works to produce scien/c discovery.
A student studies to learn.
Extrinsic mo@va@on: Mo/va/on that comes
from consequences external to the work.
E.g. A scien/st works to earn good salary and
to win an award.
A student studies to get good grades.
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Recent research on disadvantages of extrinsic factors

38

Recent research on disadvantages of extrinsic factors

Complex task:
More $$ _Poorer
______ performance

Simple task:
performance
More $$ _Beaer
______
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Drive:
The surprising truth about what mo@vates us
Rewards can perform a weird sort of behavioral
alchemy: They can transform an interes/ng task
into a drudge. They can turn play into work. And
by diminishing intrinsic mo/va/on, they can send
performance, crea/vity, and even upstanding
behavior toppling like dominoes

-
-
-

The desire to be self-directed

The urge to get better at stuff
To get a sense of purpose through meaningful
work that benefits the society
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Treadway Tire Company Case Study

41

Background
The Treadway Tire Co. is a supplier of *res to major
car companies like Ford, GM, Chrysler
They have almost 9,000 employees in North America

Treadway only has one current opera*ng

manufacturing plant in North America
Located in Lima, Ohio
There was a second plant in Greenville, SC which closed
in 2006 due to nancial reasons
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Current Situa*on
Low morale and high turnover among line foremen
Out of 50 foreman, 23 le{ in 2007 (46%)
Dicult and strenuous work environment
Employee surveys and exit interviews

Rising cost of raw materials

Price of oil went from $25/barrel in 2003 to $92 in 2007
Raw materials comprise 55% of the cost to produce a /re
Puts focus on cost reduc/on => reduce turnover!

43

How Do Foremen Feel About Their Jobs?

Unequipped for the job
Liale training and coaching

LiXle discre*on dealing with employees

Strong inuence of union contracts; general supervisors
unsuppor/ve of new management methods

Career frustra*on
Low poten/al for advancement: 75% of foremen had
reached peak of their career progression within the plant

Alienated/betrayed by everyone in the plant

Poor communica/on, authority constantly challenged by
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workers and the union, lack of recogni/on

Consequences of Those Feelings?

Exhibit 3: (in)voluntary & (dys)func*onal turnover
Internal 40% (voluntary 38%) vs. external 75% (voluntary 50%)
Educa/on/training is insucient to solve the problem

Simple es*mate of cost of turnover

15 days * 12 hours = 180 hours/month
$30/hour plus 40% in benets = $42/hour fully loaded
Assump/on: 4 months to become fully produc/ve, new employees
work at 50% of maximum produc/vity
Calcula/on: 180*42*4*50%*23 = $347,760

Other costs of turnover

Revenue loss due to produc/vity decline, recrui/ng costs, training
costs, separa/on costs (HR sta /me, unemployment expenses,
45
legal fees, etc.)

Responses to Job Dissa*sfac*on

46

Taking Ac*on
Transferred Ashley Wall, Director of Human
Resources to the Lima plant
Main priority was to lower the high turnover rate
and job dissa/sfac/on among foreman
Lima plant could be Threadways #1 plant in
produc/vity and low cost producer in North America

47

Ac*on Plan
Perspec*ve

Recommenda*ons

Maslows hierarchy
of needs
Goal seWng theory


Job characteris/cs
model


Equity theory

Expectancy theory

48

Root Causes (1/2)

Lack of training
Liale on-the-job training by general supervisors (despite 1:4 ra/o)
Limited networking among foremen => limits knowledge sharing
Few incen/ves (pay or benets) for foremen to seek training

Recruitment and selec*on metrics dont t

Emphasis on short-term results (not interpersonal skills)
Yet interpersonal skills are key to mo/vate workers since other
mo/va/onal tools (e.g. promo/on) are unavailable

Performance evalua*on contradic*ons

3 criteria: controlling workers, reducing grievances, mee/ng forecasts
Only factor over which foremen have some inuence is controlling
workers, leading them to become tough => few career benets

49

Root Causes (2/2)

Poor communica*ons
Lack of up-to-date knowledge of union nego/a/ons and grievance
commiaee decisions => foremen are frustrated and lack power

Adversarial norms
Foremen belief workers are not to be trusted and are mo/vated
by fear => confronta/onal and aggressive behaviors

Flawed philosophy
Basic philosophy at Lima is that workers are extensions of the
equipment and not thinkers, while the union is the enemy
Changing the way foremen do their work will require change in the
aWtudes and prac/ces of the plants middle/top managers
Plant manager Bellingham s/ll views the foreman problem as a
personnel problem, not a line management problem
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Poten*al Solu*ons (1/3)

Recrui*ng, selec*on, and development
Give priority and equal weigh/ng to interpersonal skills in the FLT
Refocus eorts to op/mize mix of KSA in the foreman posi/on
Create development opportuni/es for promising line foreman

Training
Incen/vize foremen to take short, focused training modules for
on-the-job training in HRM skills
Encourage formal/informal interac/on among foremen by pairing
up foremen wo have dierent skills
Wall must provide Bellingham with a cost-benet analysis to
illustrate the net payback of the training program

51

Poten*al Solu*ons (2/3)

Performance reviews and evalua*ons
Include more in-depth ra/ng of key metrics (e.g., interpersonal
skills, subordinate and peer mentoring) for all three levels
Seek 360 feedback from subordinates, peers, and superiors
Set specic 6 and 12 month targets for foremen, supervisors and
area managers in areas such as training and peer mentoring =>
schedule mee/ngs to monitor progress over /me

Higher level philosophical change

Improve communica/ons between workers, foremen, and middle/
senior managers => HR can organize regular mee/ngs to discuss
issues and o-site mee/ngs for foremen only to share knowledge
Create task force teams composed of representa/ves from all
groups to diuse distrust and open communica/on channels

52

Poten*al Solu*ons (3/3)

Sa*sfac*on surveys and exit interviews
Con/nue regular employee sa/sfac/on surveys and exit interviews
to help iden/fy issues in the workforce and monitor progress

Mi*gate poten*al resistance to suggested change

Wall should suggest a Long March strategy for change
Change will be gradual and employee involvement is cri/cal for
minimizing resistance and opera/onal disrup/ons
Ashley must build support and get out to talk with employees at all
levels and the union to discover what they think should be done
She should develop a logical plan with hard data and bring it to
Bellingham => needs to manage her boss

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Strategies for Implemen*ng Change

Rapid
Implementa*on
(Bold Strokes)
Fast

Gradual
Implementa*on
(Long March)
Speed of Change

Slow

Bold Strokes: Takes a rapid, top-down, direc/ve approach. Most

suitable when rm is in crisis and must take quick ac/on. Leaders
must have a clear plan and have wide support.
Long March: A more gradual and itera/ve approach. Goal is to
minimize resistance by geWng eveybody involved. Gives leader more
/me to gather knowledge, but prolonged uncertainty may be costly.
Source: Kanter, R.M., Stein, B., and Jick, T.D. (1992). The Challenge of Organiza/onal Change:
How Companies Experience and Leaders Guide It. New York: Free Press

54

Intended learning outcomes

for Topic 7
By now, you should be able to:
Dene mo/va/on, and state the importance of mo/va/on
to organiza/ons
Discuss various theories of mo/va/on, and apply those
theories to design managerial prac/ces that mo/vate
employees
Dene intrinsic and extrinsic mo/va/on, and discuss the
disadvantage of extrinsic mo/va/on

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