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Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

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Page 1: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Management, Organizational Policies & PracticesManagement, Organizational Policies & Practices

Lecture 10 Dr. Amna YousafPhD (HRM)

University of Twente, the Netherlands

Page 2: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Recap Lecture 9Recap Lecture 9

Funcations of communication Communication process and model Downward, upward, lateral communication Verbal, written, non verbal communication Formal communication networks Grapevine Choice of channels and channel richness Common barriers to effextive communication Cluture as effective communication barrier

Page 3: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Managing MotivationManaging Motivation

Lecture 10

Page 4: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

OutlineOutline

What is motivation Motivation theories

– Maslow’s Need Theory– ERG Theory– Theory X and Theory Y– Two-factor Theory– McClelland’s Theory of Needs– Cognitive Evaluations Theory– Goal Setting Theory

• MBO as application of Goal Setting

– Self-efficacy Theory Implications for Managers

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Page 5: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

© 2007 Prentice Hall Inc. All rights reserved.

What Is Motivation?

Direction

PersistenceIntensity

Page 6: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

© 2007 Prentice Hall Inc. All rights reserved.

Key Elements

1. Intensity: how hard a person tries

2. Direction: toward beneficial goal

3. Persistence: how long a person tries

Key Elements

1. Intensity: how hard a person tries

2. Direction: toward beneficial goal

3. Persistence: how long a person tries

Motivation

The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.

What is Motivation? What is Motivation?

Page 7: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

© 2007 Prentice Hall Inc. All rights reserved.

Hierarchy of Needs Theory (Maslow)Hierarchy of Needs Theory (Maslow)

Hierarchy of Needs Theory

There is a hierarchy of five needs—physiological, safety, social, esteem, and self-actualization; as each need is substantially satisfied, the next need becomes dominant.

Self-Actualization

The drive to become what one is capable of becoming.

Page 8: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

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Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

E X H I B I T 6–1E X H I B I T 6–1

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

Higher-Order NeedsNeeds that are satisfied

internally; social, esteem, and self-actualization

needs.SelfSelf

EsteemEsteem

SocialSocial

SafetySafety

PhysiologicalPhysiological

Page 9: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Maslow’s Need Theory-conceptsMaslow’s Need Theory-concepts

Physiological – hunger, thirst, shelter, sex, and other bodily needs

Safety – security and protection from physical or emotional harm

Social – affection, belongingness, acceptance & friendship

Esteem – internal factors such as self-respect, autonomy and achievement and external factors such as status, recognition and attention

Self-actualization – drive to become what one is capable of becoming, achieving one’s potential and self fulfillment

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Page 10: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

© 2007 Prentice Hall Inc. All rights reserved.

Assumptions of Maslow’s HierarchyAssumptions of Maslow’s Hierarchy

Movement up the Pyramid

•Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied.

Maslow Application:

A homeless person

will not be motivated to

meditate!

Maslow Application:

A homeless person

will not be motivated to

meditate!

•Individuals therefore must move up the hierarchy in order

Page 11: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Alderfer’s ERG TheoryAlderfer’s ERG Theory

Existence similar to Maslow’s physiological and safety needs

Relatedness related to social and status needs Growth similar to esteem and self-actualization

needs Unlike Maslow’s theory, individuals can be at all

categories simultaneously

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Page 12: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

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Theory XTheory XManagers See Workers As…Managers See Workers As…

Disliking WorkDisliking Work

Avoiding ResponsibilityAvoiding Responsibility

Having Little AmbitionHaving Little Ambition

Theory YTheory Y Managers See Workers As…Managers See Workers As…

Enjoying WorkEnjoying Work

Accepting ResponsibilityAccepting Responsibility

Self-DirectedSelf-Directed

Page 13: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Theory X and Theory YTheory X and Theory Y

McGreoger believes theory Y assumptions more valid so managers should encourage participative decision making, responsible and challenging jobs and good group relations

No evidence indicating which assumptions are true or that theory Y environment will lead to more motivated workers

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Page 14: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

© 2007 Prentice Hall Inc. All rights reserved.

Herzberg’s Two-Factor TheoryHerzberg’s Two-Factor Theory

Bottom Line: Satisfaction and Dissatisfaction are not Opposite Ends of the Same Thing!

Separate constructs– Hygiene Factors---Extrinsic

& Related to Dissatisfaction

– Motivation Factors---Intrinsic and Related to

Satisfaction

Hygiene Factors:

•Salary

•Work Conditions

•Company Policies

Motivators:

•Achievement

•Responsibility

•Growth

Page 15: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

© 2007 Prentice Hall Inc. All rights reserved.

Comparison of Satisfiers and Dissatisfiers

Comparison of Satisfiers and Dissatisfiers

Factors characterizing events on the job that led to extreme job dissatisfaction

Factors characterizing events on the job that

led to extreme job satisfaction

E X H I B I T 6–2E X H I B I T 6–2

Source: Reprinted by permission of Harvard Business Review. An exhibit from One More Time: How Do You Motivate Employees? by Frederick Herzberg, September–October 1987. Copyright © 1987 by the President and Fellows of Harvard College: All rights reserved.

Page 16: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

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Contrasting Views of Satisfaction and DissatisfactionContrasting Views of Satisfaction and Dissatisfaction

E X H I B I T 6–3E X H I B I T 6–3

Page 17: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Critique on two-factor theoryCritique on two-factor theory

Failure blamed to extrinsic factors; success to personal attributes

Ratings used to measure job satisfaction may be contaminated; people may be positive on one scale item but may treat a different response differently

No overall measure of satisfaction utilized; dissatisfaction on one facet but overall satisfaction

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Page 18: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Critique on two-factor theoryCritique on two-factor theory

Herzberg assumed relationship between satisfaction and productivity but no measure of productivity was employed. One needs to assume a strong relationship between the two. – No sufficient empirical backing for the theory as

for the earlier ones– May sound well empirically

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Page 19: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

© 2007 Prentice Hall Inc. All rights reserved.

David McClelland’s Theory of NeedsDavid McClelland’s 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

Page 20: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

David McClelland’s Theory of NeedsDavid McClelland’s Theory of Needs

Not much evidence for power and affiliation need High achievers perform well when probability of

success .5. – Not attribution to pure chance or least challenge

High achievers are successful entrepreneurs; no links to being effective managers

Effective managers may be linked to high power need and low affiliation need

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Page 21: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

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Matching High Achievers and JobsMatching High Achievers and Jobs

E X H I B I T 6–4E X H I B I T 6–4

Page 22: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

© 2007 Prentice Hall Inc. All rights reserved.

Cognitive Evaluation TheoryCognitive Evaluation Theory

Cognitive Evaluation Theory

Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation.

The theory may only be relevant to jobs that are neither extremely dull nor extremely interesting.

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 don’t want to do it!

Page 23: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Cognitive Evaluation TheoryCognitive Evaluation Theory

Intrinsic and extrinsic motivation are not mutually exclusive

Managerial implications: rewards contingent on performance?

Extrinsic rewards shift locus of control to external– Tangible rewards undermine performance while

intangible rewards don’t. Support from a number of studies

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Page 24: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Self-concordance – extension of CETSelf-concordance – extension of CET

Intrinsically motivated people are happy even when they cant reach goals as they find the process fun

Extrinsically motivated people don’t get that much happiness even after goal achievement as they don’t find goal satisfying

Implications– Choose jobs carefully– Managers should create work conditions that

enhance intrinsic motivation and not only rely on rewards.

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Page 25: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

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E X H I B I T 6–5E X H I B I T 6–5

What Would Herzberg Say? What Would Maslow Say? What Would Herzberg Say? What Would Maslow Say?

Page 26: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

© 2007 Prentice Hall Inc. All rights reserved.

Goal-Setting Theory (Edwin Locke)Goal-Setting Theory (Edwin Locke)

Basic Premise: That 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”

–Increased through participatory goals, making them public, specific, top management involvement

Page 27: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Goal-Setting Theory (Edwin Locke)Goal-Setting Theory (Edwin Locke)

• task characteristics (simple versus complex, well-learned versus novel, independent versus interdependent)

• national culture– Goal setting well aligned with north American

cultures– Independent : not too high on power distance– Challenging goals: low in uncertainty avoidance– Performance is important: high in achievement

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Page 28: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

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Goal Setting in Action: MBO ProgramsGoal Setting in Action: MBO Programs

Management By Objectives Programs

• Company wide goals & objectives

• Goals aligned at all levels

• Based on Goal Setting Theory

Management By Objectives Programs

• Company wide goals & objectives

• Goals aligned at all levels

• Based on Goal Setting Theory

Page 29: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

© 2007 Prentice Hall Inc. All rights reserved.

What is MBO?What is MBO?

Key Elements

1. Goal specificity

2. Participative decision making

3. An explicit time period

4. Performance feedback

Key Elements

1. Goal specificity

2. Participative decision making

3. An explicit time period

4. Performance feedback

Management by Objectives (MBO)

A program that encompasses specific goals, participatively set, for an explicit time period, with feedback on goal progress.

Page 30: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

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Cascading of ObjectivesCascading of Objectives

E X H I B I T 6–1E X H I B I T 6–1

Page 31: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

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Linking MBO and Goal-Setting TheoryLinking MBO and Goal-Setting Theory

MBO Goal-Setting Theory

Goal Specificity Yes Yes

Goal Difficulty Yes Yes

Feedback Yes Yes

Participation Yes No(qualified)

Page 32: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

MBO and Goal SettingMBO and Goal Setting

MBO emphasizes on participative goal setting In Goal Setting theory goals assigned as well as

participatory can be equally effective

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Page 33: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

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Why MBOs FailWhy MBOs Fail

Unrealistic expectations about MBO results

Lack of commitment by top management

Failure to allocate reward properly

Cultural incompatibilities

Page 34: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

© 2007 Prentice Hall Inc. All rights reserved.

Self-EfficacySelf-Efficacy

Self Esteem, which is….

Individuals’ degree of liking or disliking themselves.

•An individual’s feeling that s/he can complete a task (e.g. “I know I can!”)

•Enhances probability that goals will be achieved

Not to be confused with:

Page 35: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

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Self-Efficacy and Goal Setting Self-Efficacy and Goal Setting

Page 36: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

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Four Ways of Increasing Self Efficacy (Bandura)

Four Ways of Increasing Self Efficacy (Bandura)

1. Enactive Mastery

2. Vicarious Modeling

3. Verbal Persuasion

4. Arousal

Note: Basic Premise/Mechanism of Pygmalion and Galatea Effects

Page 37: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Self-EfficacySelf-Efficacy

Mastery Orientation– If you have done a task in the past, your slef

efficacy to perform will be higher Vicarious modeling

– Some one similar to you doing a task increases your confidence of doing it

• some one else loosing weight• Some one of same handicap as you playing golf

Verbal persuasion– Some one convinces you that you have necessary

skills to do some task. Motivational speakers use this tactic

Arousal– Energized state to do a task.

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Page 38: Management, Organizational Policies & Practices Lecture 10 Dr. Amna Yousaf PhD (HRM) University of Twente, the Netherlands

Self-efficacy and Goal SettingSelf-efficacy and Goal Setting

Self efficacy works together with goal setting Self efficacious individuals more likely to work

harder in response to negative feedback and vice versa

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