Because learning changes everything.

CHAPTER 12
MOTIVATING EMPLOYEES
Achieving Superior
Performance in the
Workplace

© 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. ©Olivier Renck/ Getty Images
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
 LEARNING OBJECTIVES

12-1 Explain the role of motivation in accomplishing goals.

12-2 Identify the needs that motivate most employees.
12-3 Discuss similarities and differences among three
process theories.
12-4 Compare different ways to design jobs.
12-5 Discuss how to use four types of behavior
modification.
12-6 Discuss the role of compensation in motivating
employees.
12-7 Describe how to develop the career readiness
competency of self-motivation.

© McGraw Hill
 MOTIVATING FOR PERFORMANCE

Motivation: What It Is, Why It’s Important

The Four Major Perspectives on Motivation: An

Overview

© McGraw Hill
 MOTIVATION: WHAT IT IS, WHY IT’S IMPORTANT
What Is Motivation and How Does It Work?
• Motivation is defined as the psychological processes that arouse
and direct goal-directed behavior. Motivation is difficult to
understand because you can’t actually see it or know it in another
person; it must be inferred from one’s behavior.
• The individual personal factors that employees bring to the
workplace range from personality to attitudes.
• Extrinsic rewards—rewards given by others. An extrinsic reward
is the payoff, such as money, a person receives from others for
performing a particular task. Extrinsic motivation is driven by
receiving a valued reward from another person or entity.
• Intrinsic rewards—a reward given to yourself. An intrinsic reward
is the satisfaction, such as a feeling of accomplishment, a person
receives from performing the particular task itself.

© McGraw Hill
 MOTIVATION: WHAT IT IS, WHY IT’S IMPORTANT

Why Is Motivation Important?

• Join your organization. You need to instill in talented prospective workers
the desire to come to work for you.
• Stay with your organization. Whether you are in good economic times or
bad, you always want to be able to retain good people.
• Show up for work at your organization. In many organizations, absenteeism
and lateness are great problems.
• Be engaged while at your organization. Engaged employees produce
higher-quality work and better customer service.
• Do extra for your organization. You hope your employees will perform extra
tasks above and beyond the call of duty (be organizational “good citizens”).

Motivation is complex.
• It is the result of multiple personal and contextual factor.

© McGraw Hill 5
 FIGURE 12.1 AN INTEGRATED MODEL OF MOTIVATION

Access text alternate for slide image.

© McGraw Hill
 FIGURE 12.2 A SIMPLE MODEL OF MOTIVATION

Access text alternate for slide image.

© McGraw Hill
 THE FOUR MAJOR PERSPECTIVES ON MOTIVATION: AN
OVERVIEW

The four perspectives on motivation:

• Content theories emphasize needs as motivators.
• Process theories focus on the thoughts and perceptions
that motivate behavior.
• Job design theories focus on designing jobs that lead to
employee satisfaction and performance.
• Reinforcement theory Is based on the notion that
motivation is a function of behavioral consequences and
not unmet needs.

No single theory accepted by everyone as to what

motivates people.
© McGraw Hill
 CONTENT PERSPECTIVES ON EMPLOYEE MOTIVATION

Content perspectives, also known as need-based perspectives, are

theories emphasizing the needs that motivate people. Needs are
defined as physiological or psychological deficiencies that arouse
behavior. The content perspective includes four theories:

Maslow’s Hierarchy of Needs Theory: Five Levels

McClelland’s Acquired Needs Theory: Achievement, Affiliation,
and Power
Deci and Ryan’s Self-Determination Theory: Competence,
Autonomy, and Relatedness
Herzberg’s Two-Factor Theory: From Dissatisfying Factors
to Satisfying Factors

© McGraw Hill
 FIGURE 12.3 MASLOW’S HIERARCHY OF NEEDS THEORY:
FIVE LEVELS

Access text alternate for slide image.

© McGraw Hill
 MCCLELLAND’S ACQUIRED NEEDS THEORY: ACHIEVEMENT,
AFFILIATION, AND POWER

The Three Needs:

1. Need for achievement: This is the
desire to excel, to do something better
or more efficiently, to solve problems,
to achieve excellence in challenging
tasks.
2. Need for affiliation: This is the desire
for friendly and warm relations with
other people.
3. Need for power: This is the desire to
be responsible for other people, to
influence their behavior or to control
them.

Using Acquired Needs Theory to

Motivate Employees

© McGraw Hill
 DECI AND RYAN’S SELF-DETERMINATION THEORY:
COMPETENCE, AUTONOMY, AND RELATEDNESS
Self-determination theory assumes that people are driven to try to grow and
attain fulfillment, with their behavior and well-being influenced by three innate
needs: competence, autonomy, and relatedness.
* Focus on Intrinsic Motivation and rewards (such as feeling independent)
rather than on extrinsic motivation and rewards (such as money).
• The Three Innate Needs:
- Competence—“I want to feel a sense of mastery.” People need to feel
qualified, knowledgeable, and capable of completing a goal or task and to
learn different skills.
- Autonomy—“I want to feel independent and able to influence my
environment. ”People need to feel they have freedom and the discretion to
determine what they want to do and how they want to do it.
- Relatedness—“I want to feel connected to other people.” People need to
feel a sense of belonging, of attachment to others.
• Using Self-Determination Theory to Motivate Employees. Managers can
apply this theory by engaging in leader behavior that fosters the experience
of competence, autonomy, and relatedness.
© McGraw Hill
 HERZBERG’S TWO-FACTOR THEORY: FROM
DISSATISFYING FACTORS TO SATISFYING FACTORS
Herzberg’s two-factor theory, which proposed that work
satisfaction and dissatisfaction arise from two different factors—
work satisfaction from motivating factors and work
dissatisfaction from hygiene factors.
1.The lower-level needs, hygiene factors, are factors associated
with job dissatisfaction—such as salary, working conditions,
interpersonal relationships, and company policy—all of which
affect the job context in which people work.
2.Motivating factors—“What will make my people satisfied?” The
higher-level needs, motivating factors, or simply motivators,
are factors associated with job satisfaction—such as
achievement, recognition, responsibility, and advancement—
all of which affect the job content or the rewards of work
performance.

© McGraw Hill
 FIGURE 12.5 HERZBERG’S TWO-FACTOR THEORY:
SATISFACTION VERSUS DISSATISFACTION

Access text alternate for slide image.

© McGraw Hill
 FIGURE 12.6 A COMPARISON OF THE CONTENT
THEORIES
A comparison of needs and satisfaction theories: Maslow hierarchy of needs, McClelland acquired
needs, Deci and Ryan self-determination, and Herzberg two-factor.

Access the text alternative for these images.

© McGraw Hill
 PROCESS PERSPECTIVES ON EMPLOYEE MOTIVATION

Process perspectives are concerned with the thought

processes by which people decide how to act—how
employees choose behavior to meet their needs.

Three process perspectives on motivation:

Equity/Justice Theory: How Fairly Do You Think You’re
Being Treated in Relation to Others?
Expectancy Theory: How Much Do You Want and How
Likely Are You to Get It?
Goal-Setting Theory: Objectives Should Be Specific and
Challenging but Achievable

© McGraw Hill
 EQUITY/JUSTICE THEORY: HOW FAIRLY DO YOU
THINK YOU’RE BEING TREATED IN RELATION TO
OTHERS?

• Equity theory is a model of motivation that

explains how people strive for fairness and
justice in social exchanges or give-and-take
relationships.
• The Elements of Equity Theory: Comparing Your
Inputs and Outputs with Those of Others
• Using Equity Theory to Motivate Employees
• Using Equity and Justice Theories to Motivate
Employees

© McGraw Hill
 FIGURE 12.7
EQUITY/JUSTICE
THEORY: HOW
FAIRLY DO YOU
THINK YOU’RE
BEING TREATED IN
RELATION TO
OTHERS?

Access alternate text for slide image.

© McGraw Hill
 SOME WAYS EMPLOYEES TRY to REDUCE INEQUITY

How employees may try to reduce inequity.

* They will reduce their inputs: They will do less work, take long
breaks, call in “sick” on Mondays, leave early on Fridays, and so
on.
* They will try to change the outputs or rewards they receive: They
will lobby the boss for a raise, or they will pilfer company
equipment.
* They will distort the inequity: They will exaggerate how hard they
work so they can complain they’re not paid what they’re worth.
* They will change the object of comparison: They may compare
themselves with another person instead of the original one.
* They will leave the situation: They will quit, transfer, or shift to
another reference group.

© McGraw Hill 19
 EXPECTANCY THEORY: HOW MUCH DO YOU WANT
AND HOW LIKELY ARE YOU TO GET IT?
Expectancy Theory
• Suggests that people are motivated by two things:
1. How much they want something.
2. How likely they think they are to get it.
• Three elements to expectancy theory:
1. Expectancy: belief that a particular level of effort will
lead to a particular level of performance.
2. Instrumentality: expectation that successful
performance of the task will lead to the desired
outcome.
3. Valence: the value a worker assigns to an outcome.
© McGraw Hill
 FIGURE 12.8 EXPECTANCY THEORY: HOW
MUCH DO YOU WANT AND HOW LIKELY ARE
YOU TO GET IT?

Access text alternate for slide image.

© McGraw Hill
 JOB DESIGN PERSPECTIVES ON MOTIVATION

Job design is (1) the division of an organization’s

work among its employees and (2) the application of
motivational theories to jobs to increase satisfaction
and performance.
Fitting People to Jobs. (The traditional approach to job
design)

Fitting Jobs to People (The modern way)

© McGraw Hill
 FITTING PEOPLE TO JOBS

• Fitting people to jobs is based on the assumption

that people will gradually adapt to any work
situation.
• One technique is scientific management, the
process of reducing the number of tasks a worker
performs.
• When a job is stripped down to its simplest
elements, it enables a worker to focus on doing
more of the same task, thus increasing employee
efficiency and productivity.

© McGraw Hill
 FITTING JOBS TO PEOPLE

• Job Enlargement: consists of increasing the number

of tasks in a job to increase variety and motivation.
Three important points about job enlargement:
Improve employee satisfaction, motivation, and quality of
production.
• Job Enrichment: consists of building into a job such
motivating factors as responsibility, achievement,
recognition, stimulating work, and advancement.
With job enrichment employees are given more
responsibility.

© McGraw Hill
 REINFORCEMENT PERSPECTIVES ON MOTIVATION

- Reinforcement theory suggests behavior will be

repeated if it has positive consequences and won’t
be if it has negative consequences. This section
also describes how to use four techniques—positive
reinforcement, negative reinforcement, extinction,
and punishment—to modify employee behavior.
- Reinforcement theory, which attempts to explain
behavior change by suggesting that behavior with
positive consequences tends to be repeated,
whereas behavior with negative consequences
tends not to be repeated.

© McGraw Hill
 THE FOUR TYPES OF BEHAVIOR MODIFICATION

1.Positive Reinforcement: Strengthens behavior. Positive

reinforcement is the introduction of positive consequences to
strengthen the likelihood that a particular behavior will occur
again in the future.
2.Negative Reinforcement: Also strengthens behavior. Negative
reinforcement is the removal of a negative stimulus to strengthen
the likelihood that a particular behavior will occur again in the
future.
3.Extinction: Weakens behavior. Extinction decreases the likelihood
that a particular behavior will occur again in the future by ignoring
it or making sure it is not reinforced.
4.Punishment: Also weakens behavior. Punishment decreases the
likelihood that a behavior will occur again in the future by
presenting something negative or withdrawing something positive.

© McGraw Hill
 FIGURE 12.10 THE FOUR TYPES OF BEHAVIOR
MODIFICATION

These are
different
ways of
changing
employee
behavior.

Access alternate text for slide image.

© McGraw Hill
 USING BEHAVIOR MODIFICATION TO MOTIVATE EMPLOYEES

• Positive Reinforcement:
• Reward only desirable behavior.

• Give rewards as soon as possible.

• Be clear about what behavior is desired.

• Have different rewards and recognize individual differences.

• Punishment
• Punish only undesirable behavior.
• Give reprimands or disciplinary actions as soon as possible.
• Be clear about what behavior is undesirable.
• Administer punishment in private.
• Combine punishment and positive reinforcement.

© McGraw Hill
 USING REWARDS TO MOTIVATE: IN SEARCH OF THE
POSITIVE WORK ENVIRONMENT

Compensation, the main motivator of performance, includes pay for

performance, bonuses, profit sharing, gainsharing, stock options, and pay
for knowledge. Other, nonmonetary incentives address needs that aren’t
being met, such as work–life balance, growth in skills, positive work
environment, and meaning in work.

Is Money the Best Motivator?

Motivation and Compensation

Nonmonetary Ways of Motivating Employees

© McGraw Hill
 IS MONEY THE BEST MOTIVATOR?

• Whatever happened to good old money as a

motivator?
• For working parents, flexibility may be more
important than salary.
• A 2019 Jobvite survey found that career growth
opportunities were more important to job seekers
than salary and benefits.
• Clearly, then, motivating doesn’t just involve
money.

© McGraw Hill
 MOTIVATION AND COMPENSATION

1.Characteristics of the Best Incentive Compensation Plans.

In accordance with most of the theories of motivation we
described earlier, for incentive plans to work, certain criteria are
advisable, such as:
• Rewards must be linked to performance and be measurable.
• Rewards must satisfy individual needs.
• Rewards must be agreed on by manager and employees.
• Rewards must be believable and achievable by employees..
2.Popular Incentive Compensation Plans. In what way would
you like to be rewarded for your efforts? Some of the most
well-known incentive compensation plans are pay for
performance, bonuses, profit sharing, gainsharing, stock options,
and pay for knowledge.
© McGraw Hill
 NONMONETARY WAYS OF MOTIVATING EMPLOYEES
• The Need for Work–Life Balance.
Work–life benefits consist of initiatives and programs that employers implement in an effort to
help employees balance the often-competing needs of their work and home lives.
• The Need for Personal Growth.
According to a recent survey, 94% of employees would stay with a company longer if they had
opportunities for learning and development.
Employers see it as developing human capital, which is the economic or protective potential
of employee knowledge, experience, and actions.
• The Need for a Positive Work Environment.
Well-being is the combined impact of five elements—positive emotions, engagement,
relationships, meaning, and achievement.
Flourishing represents the extent to which our lives contain PERMA. When we flourish, our lives
result in “goodness . . . growth, and resilience.”
The Need for Meaningful Work. Workers now want to be with an organization that allows them
to feel they matter.
Meaningfulness, then, is characterized by a sense of being part of something you believe is
bigger than yourself.

© McGraw Hill
 CAREER CORNER: MANAGING YOUR CAREER READINESS

1.The Self-Management Process:

• Identify your “wildly important” long-term goal.
• Break your wildly important goal into short-term goals.
• Create a “to-do” list for accomplishing your short-term goals.
• Prioritize the tasks.
• Create a time schedule.
• Work the plan, reward yourself, and adjust as needed.
2.Recharging:
• Figure out what recharging means to you.
• Include mental and physical relaxation.
• Accept kindness.
© McGraw Hill
 CAREER CORNER: MODEL OF CAREER READINESS

Access text alternate for slide image.

© McGraw Hill
 End of Main Content

Because learning changes everything. ®

www.mheducation.com

© 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.

© McGraw Hill