Will you be able to complete the full course?

4 Motivational Processes Zhenikeyev/iStock/Thinkstock Learning Objectives After reading this chapter and studying the materials, you should be able to:• Discuss the natur e of moti vation and its r ole in the w orkplace.

• Apply ear ly theories of moti vation t o specific jobs and acti vities.

• Utilize the principles of beha viorism and r einforcement t o impr ove perf ormance.

• Employ the concepts pr esent in equity theory .

• Implement e xpectancy theory t o enhance emplo yee moti vation.

2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Motivation Section 4.1 4.1 The Nature of Motivation Motivation r anks as one of the most fr equently used t erms in business. Seeking t o understand the nat ure of moti vation has been a constant goal in management and or ganizational lit era- ture.

Aft er all, understanding the natur e of moti vation helps or ganizations incr ease le vels of eff ort and subsequentl y impr ove le vels of perf ormance. F or decades, moti vation w as one of the most fr equently studied subjects in or ganizational beha vior (Ambr ose & K ulik, 1999). As a r esult, a rich v ariety of theories, ideas, concepts, and pr ograms about moti vation emer ged. Some confusion and disagreement about the nature of the concept resulted as well.

Differences begin with the definition. The w ord “moti vation” is deri ved fr om the Latin mo vere, or “t o mo ve.” Some authors conceptualize moti vation in t erm of dri ves, unfulfilled needs, and mor e cogniti ve concepts (se e Figur e 4.1). Others portr ay it in t erms of int ensity, dir ection, and persist ence of eff ort t oward attaining a goal (Mit chell, 1997). This definition also lea ves r oom f or interpretation, such as what exactly “intensity” means in that context.

In an y case, moti vation can be consider ed in a mor e gener al manner or as it specificall y applies t o a w orkplace setting. In considering moti vation at w ork, per haps the best w ay t o think of it is in terms of an end result: behavior. M. R. Jones (1955) defined moti vation as 1. what starts behaviors, 2. what maintains behaviors, and 3. what stops behaviors.

Table 4.1 disp lays w orkplace beha viors w orthy of being start ed and maintained as w ell as those that are best when stopped.

Table 4.1: Behaviors at work Start and maintain• Attendance • Punctuality • Productivity/effort • Cooperation with others • Citizenship behaviors Figure 4.1: Concepts of motivation Some models of motivation, such as the one shown, portray motivation as a drive, while others consider intensity, direction, and persistence of effort toward attaining a goal to be a more accurate depiction. Stop • Unhealthy habits • Unsafe work practices • Unproductive conflict • Vandalism • Unethical actions \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Motivation Section 4.1 To encour age or discour age the beha viors displa yed in T able 4.1, v arious moti vational theo - ries ma y be applied. In 1980, Szilagyi and W allace conce ptualized moti vation int o tw o cat ego- ries:

cont ent and pr ocess. C ontent theories of moti vation e xamine f actors within indi viduals, notabl y needs , that lead t o beha viors. Cont ent theorie s describe the essence or cont ent of moti ves, w hich ar e oft en view ed as unsatisfied or unfulfilled needs. F or e xample, indi viduals mig ht be moti vated t o w ork because it helps them meet certain ph ysical needs, such as those f or food, clothing, and shelter.

Process theories e xamine the pr ogression of e vents that lead t o moti vated beha vior. Pr ocess theories can be subdi vided int o tw o sets, based on w hether the y e xamine oper ant pr ocesses or cogniti ve pr ocesses. Oper ant process theories of moti vation e xplore e xternal f actors, such as r ewards gi ven b y managers t o emplo yees that incr ease and decr ease beha v- iors, using Skinner’s beha viorism principles. C ognitive process theories of moti vation e xamine the thoug ht pr ocesses or mental r easoning pr ocesses that lead t o beha viors, such as w hen an emplo yee belie ves he or she is tr eated unf airly and r esponds b y looking f or a job elsew here. T able 4.2 pr esents the theories of moti vation that will be discussed in this chapt er.

Table 4.2: Motivation theories Content theoriesOperant process theories Cognitive process theories Maslow’s hierarchy of needs theory R einforcement theoryEquity theory Alderfer’s ERG theory Organizational behavior modifi- cation (OB Mod)Expectancy theory McClelland’s need theory Herzber g’s two-factor theory Each of these theories contribut es t o our kno wledge of ho w emplo yees beha ve on the job; ho wever, mor e w ork r emains t o be done. Gallup P oll surv eys fr om 2011 thr ough 2015 indi- cat ed that a substantial number of American emplo yees r eported the y w ere “not eng aged” or w ere “acti vely diseng aged” with their jobs. Mor e than e ver, managers trying t o impr ove le vels of pr oductivity need t o eng age and moti vate the w orkforce. OB in Action: Edward Jones describes how this takes place in one company. OB in Action: Edward Jones—Employee Motivation in Financial Services What do es it ta ke t o become one of F ortune mag azine’s “100 Best Companies t o W ork F or”? The ans wer at E dward Jones includes a balanced appr oach t o serving clients and moti vating w orkers ( Fortune, 2011). In 2016, the or ganization r eached the r ank of 10th in the nation b y F ortune. The St . Louis-based compan y has maintained an impr essive r ecord of success in the financial services industry e ven during the 2008 r ecession and the tur bulent st ock mar ket of that time. (continued) \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Motivation Section 4.1 4.2 Early Motivation Theories In the 1950s, motivation theories that concentrated primarily on human needs emerged in the United States. The basic premise was that people act to fulfill such needs. These content theories formed the basis for later conceptual development, and many practicing managers continue to use the principles established in these early theories. Maslow’s Hierarchy of Needs Perhaps the best known need-based theory of motivation was developed by psychologist Abraham Maslow (1954), whose humanist perspective influenced the fields of management and organizational behavior. Maslow’s belief that people are essentially good and that they seek to improve throughout life is reflected in his hierarchy of needs approach, which can be described as a satisfaction–progression model. In essence, an individual regularly experiences a need until it is regularly satisfied. At that point, the person “progresses” or moves toward the next need level. The progression is as follows:

Physiological Safety Social Esteem Self-actualization Physiological needs include food, clothing, shelter, water, and sex—the basic bodily needs. Holding a steady job helps satisfy physiological needs. Safety needs are those associated with security and protection. A workplace free of physical and emotional danger fulfills this need. Social needs include a sense of belonging, love, affection, acceptance, and friendship. Making friends and building a social network on the job meets social needs. Esteem results from being held in high regard by peers, through respect, prestige, and recognition. Company awards, favorable performance reviews, and promotions generate esteem by others. Self- actualization consists of feeling that one’s life work is helpful or meaningful to other people and that the work fulfills personal needs for growth, achieving one’s potential, and being true to oneself. A self-actualized person on the job does work that he or she wishes to do, and the work helps other people. Comprehension Exercise 1. Which behavior would not be associated with workplace motivation?

a. finding a romantic partner b. being punctual c. helping coworkers with problems d. increasing personal productivity 2. Theories of motivation that concentrate on fulfilling needs are a. content theories.

b. operant process theories.

c. cognitive process theories.

d. developmental theories. Answers: 1) a 2) a OB in Action: Edward Jone Employee Motivation in Financial Services (continued) Employees hir ed at E dward Jones t end t o r emain with the compan y f or long periods of time. T o get them start ed pr operly, emplo yees r eceive quality tr aining both in person and thr ough an online s ys- tem.

Questions ar e quickl y ans wered thr ough the home-office emplo yee support s ystem. Ment oring pr ograms ar e coupled with a r egional support s ys- tem t o further assist indi viduals in r eaching their full career potential.

The benefits pack age includes medical, dental, and lif e insur ance, sick lea ve, v acation pa y, a 401(k) plan, and the ab ility t o pur chase securities at a discount . F or hig her-ranking emplo yees, t op management encour ages in vestment and o wnership in the compan y thr ough a limit ed partnership plan, w hich further emphasizes the connections betw een personal eff orts, cooper ative eff orts, and or ganizational rewards. A ccording t o F ortune, emplo yees gi ve E dward Jones hig h mar ks in the ar eas of managerial cr edibility and camar aderie within the or ganization.

The compan y, w hich had a w orkforce that w as 93% Caucasian in 2010, has begun an int ensive di versity pr ogram. Compan y documents pr oclaim that E dward Jones “does not aspir e t o be a firm of middle-aged w hite men. ” Inst ead, management belie ves that a mor e di verse w ork f orce adds ener gy and ingenuity t o oper ations and w ould lik ely lead t o an e xpansion of the compan y’s clientele.

As a pri vately held compan y, E dward Jones has managed t o build a po werful pr esence based on r elationships. As is the case in similar or ganizations, pri vate o wnership can engender a mor e “f amily” type of atmospher e with f ewer constr aints dic tated b y mandat es fr om outside entities, such as shar eholder gr oups or members fr om outside boar ds of dir ectors. R elation- ships among emplo yees lead t o str ong, personal bonds. R elationships with clients lead t o long- t erm business success.

Reflection and Application Questions 1. What role do benefits such as life, health, and dental insurance play in motivational lev- els of employees?

2. Do you think group incentives such as those offered by Edward Jones generate a differ- ent kind of motivation than do individual incentives?

3. What role does being a privately held company play, in terms of a firm’s ability to struc- ture its motivational program? Getty Images/Photodisc/Thinkstock Companies that prioritize employee development often see higher retention rates.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Early Motivation Theories Section 4.2 4.2 Early Motivation Theories In the 1950s, moti vation theories that concentr ated primaril y on human needs emer ged in the Unit ed Stat es. The basic pr emise w as that people act t o fulfill such needs. These cont ent theories f ormed the basis f or lat er conceptual de velopment, and man y pr acticing managers continue to use the principles established in these early theories. Maslow’s Hierarchy of Needs Perhaps the best kno wn need-based theory of moti vation w as de veloped b y ps ychologist A braham Maslo w (1954), w hose humanist perspecti ve influenced the fields of management and or ganizational beha vior. Maslo w’s belief that people ar e essentiall y good and that the y seek t o impr ove thr oughout lif e is r eflected in his hier archy of needs appr oach, w hich can be described as a satisf action–progression model. In essence, an indi vidual r egularly e xperiences a need until it is r egularly satisfied. A t that point , the person “pr ogresses” or mo ves t oward the next need level. The progression is as follows:

Saf ety needs ar e those associat ed with se curity and pr otection.

A w orkplace fr ee of ph ysical and emotional danger fulfills this need. Social needs include a sense of belonging, lo ve, aff ection, acceptance, and friendship. Making friends and building a social netw ork on the job meets social needs. Est eem r esults fr om being held in hig h r egard b y peers, thr ough r espect, pr estige, and r ecognition. Compan y a wards, f avorable perf ormance r eviews, and pr omotions gener ate est eem b y others. Self- actualization consists of f eeling that one’s lif e w ork is helpful or meaningful t o other people and that the w ork fulfills personal needs f or gr owth, achie ving one’s pot ential, and being true t o ones elf.

A self-actualized person on the job does w ork that he or she wishes t o do, and the w ork helps other people. Comprehension Exercise 1. Which behavior would not be associated with workplace motivation?

b. operant process theories.

c. cognitive process theories.

d. developmental theories. Answers: 1) a 2) a OB in Action: Edward Jones—Employee Motivation in Financial Services (continued) Employees hired at Edward Jones tend to remain with the company for long periods of time. To get them started properly, employees receive quality training both in person and through an online sys- tem. Questions are quickly answered through the home-office employee support system. Mentoring programs are coupled with a regional support sys- tem to further assist individuals in reaching their full career potential.

The compensation system begins with hourly wages that are based on geographic location, the level of the position, and levels of performance. Wages are enhanced through the application of bonuses based on profitability of the firm, the branch, and indi vidual productivity. A company- wide profit-sharing program further stimulates individual effort and builds a spirit of coop- eration. The benefits package includes medical, dental, and life insurance, sick leave, vacation pay, a 401(k) plan, and the ability to purchase securities at a discount. For higher-ranking employees, top management encourages investment and ownership in the company through a limited partnership plan, which further emphasizes the connections between personal efforts, cooperative efforts, and organizational rewards. According to Fortune, employees give Edward Jones high marks in the areas of managerial credibility and camaraderie within the organization.

The company, which had a workforce that was 93% Caucasian in 2010, has begun an intensive diversity program. Company documents proclaim that Edward Jones “does not aspire to be a firm of middle-aged white men.” Instead, management believes that a more diverse work force adds energy and ingenuity to operations and would likely lead to an expansion of the company’s clientele.

As a privately held company, Edward Jones has managed to build a powerful presence based on relationships. As is the case in similar organizations, private ownership can engender a more “family” type of atmosphere with fewer constraints dictated by mandates from outside entities, such as shareholder groups or members from outside boards of directors. Relation- ships among employees lead to strong, personal bonds. Relationships with clients lead to long- term business success.

Reflection and Application Questions 1. What role do benefits such as life, health, and dental insurance play in motivational lev - els of employees?

2. Do you think group incentives such as those offered by Edward Jones generate a differ - ent kind of motivation than do individual incentives?

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Early Motivation Theories Section 4.2 Maslow consider ed ph ysiological and saf ety needs t o be lo wer-order, ph ysically based needs. Social needs, est eem, and self-actualization constitut e hig her-order needs that ha ve a ps ycho- logical or mental basis. Maslo w surmised that r elatively f ew people achie ve self-actualization.

Maslo w’s hier archy enjo ys the benefit of being logical and intuiti vely sound but is unsup - ported b y empirical r esearch (La wler & Suttle, 1972). A dditional pr oblems associat ed with theory include the following:

• It does not explain the degree of satisfaction needed to progress to the next level.

• It fails to account for individuals that experience needs in a different order.

• It does not recognize other key needs, such as the need for power.

• It cannot predict the type of behavior associated with any given need.

Consider the first criticism. In t erms of f eeling “saf e,” ho w should that t erm be int erpreted? When does one f eel saf e enoug h t o pr ogress t o social needs, such as belongingness and lo ve? A perso n w ho li ves in constant f ear of losing a job, or someone w ho w orks in a danger ous country or r egion, mig ht view saf ety in a diff erent lig ht than people in other places. It w ould be difficult to discern the degree of safety needed to move forward to the next level.

The same pr oblem e xists at other le vels. What degr ee of “est eem” must be met f or someone t o pr ogress t o needs f or self-actualization? Wher e does est eem come fr om—the plaudits gi ven b y others on the job (plaques, tr ophies, positi ve perf ormance r eviews, pr omotions), or fr om other sour ces such as social standing in one’s community or r eligious or ganization? Without a clear idea of w hat w ould complet ely satisfy this need, it becomes impossible t o discern w hen a person might progress.

In t erms of the or der of needs, the “star ving artist” is a per son w ho f orsakes saf ety and secu - rity, and per haps social w ell-being, in sear ch of self-actualization. C learly this r epresents a diff erent or der than specified in the hier archy. F urther, f or some, the ultimat e e xpression of a w ell-lived lif e w ould be t o ha ve str ong bonds with f amily and friends, deem - ing those r elationships f ar mor e impor - tant than esteem or self-actualization. The thir d criticism of the theory not es that other needs e xist be yond those mentioned in the hier archy. P ower clear ly is one. Another w ould be the need f or aut onomy. The hier archy, in essence, e xpresses a hig hly limit ed view of need s that mig ht serv e as moti vators.

Regarding pr edicting beha viors, the w ay a person seek s t o fulfill each need could v ary gr eatly fr om others. T o f eel saf e, so me belie ve o wning a gun and li ving in a w ell-fortified and lock ed house is neces sary. T o f eel secur e, one Gajus/iStock/Thinkstock Though Maslow’s hierarchy of needs offers a useful frame of reference regarding motivation, it is important to note that each individual’s priorities may deviate from the model.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Early Motivation Theories Section 4.2 person mig ht belie ve a health y pension plan is the k ey w hile another ma y think being debt- fr ee is the most important. Seeking t o meet est eem needs mig ht also r esult in di vergent beha viors. A t the most basic le vel, some mig ht consider the appr oval of others (affirmation) t o be the best indicat or of being held in est eem b y others, w hereas others look t o diff erent out comes. F or instance, a v ote f or “emplo yee of the y ear” mig ht boil do wn t o a popularity cont est that indicat es appr oval b y peers and ther efore serv es as a major moti vator f or one emplo yee. Another emplo yee w ould v alue tangible achie vements, such as impr oving persona l sales figur es, finalizing the de velop- ment of a new pr oduct that r eaches the mar ket, or some other out come as the best measur e of personal success, and derive esteem from that source.

In gener al, the hier archy of needs theory pr ovided som e basic ideas about ho w diff erent f ac- tors mig ht ser ve as moti vators at v arious stages of lif e or in personal situations. Althoug h r esearch eff orts could not demonstr ate that e veryone e xperiences needs in this or der, or in an y or der f or that matt er, the theory did lead t o the de velopment of cont ent theories and e ventually to newer conceptualizations of the nature of motivation.

Alderfer’s ERG Theory Clayton Alderf er (1972) soug ht t o simplify the hier archy of needs b y br eaking it do wn int o thr ee concepts. Thus, the progression in the ERG model is Existence Relatedness Growth Existence needs equat e t o concepts of ph ysiological and saf ety needs. R elatedness needs mat ch social needs. Gr owth needs incorpor ate needs f or est eem and self-actualization. Notice that e xistence needs could be consider ed as ph ysical in natur e, r elatedness as social in natur e, and growth as psychological in nature, or Physical Social Psychological In addition t o Maslo w’s concept of satisf action-progression, Alderf er added a second con - cept:

fr ustration–regression.

If, f or e xample, a w orker has met ph ysical needs but is sociall y unskilled, the emplo yee will become frustr ated b y the inability t o mak e friends. Such a person w ould “r egress” back t o the e xistence le vel and f eel that need mor e str ongly. The indi vidual w ould become obsessed with possessions and other physical objects. An emplo yee with r outinely satisfied ph ysical and soc ial needs w orking in a dead-end job could not pr ogress t o fulfill gr owth needs. As a r esponse t o the frustr ation, that w orker mig ht gr eatly e xpand his or her so cial netw ork.

This concept r esonated with the times in w hich the theory emer ged.

Numer ous articles appear ed in popula r pr ess lit erature and academic cir cles depicting the idea that workers suffered from blue-collar blues. When man y jobs in the Unit ed Stat es w ere perf ormed in f actories and other manuf acturing f acilities, and emplo yees onl y perf ormed mundane, r outine, r epeated task s dail y, the y could not fulfill gr owth needs e ven as ph ysical needs w ere w ell met thr ough solid pa y and benefit pack ages.

Alderf er’s theory pr edicted that the logical r esponse t o blue-collar blues w ould be \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Early Motivation Theories Section 4.2 to eng age mor e int ensely in social acti vities such as r eligious or ganizations, hobbies (bo wl- ing, soft ball, pla ying car d clubs), and in other places w here people could int eract with f am- ily members and friends. A gr eat deal of colloquial e vidence support ed this idea, as bo wling alle ys and pla ying fields w ere filled with cont estants, and other social gr oups (Lions Club, F raternal Or der of Eag les, R otary Club, V eterans of F oreign W ars) flourished during the 1950s and 1960s.

While the ER G model added t o the ideas pr esent in the hier archy of needs, it did not sol ve an y of the pr oblems associat ed with that theory . Thus, pr ogression-based models of need fulfill- ment were soon replaced by new approaches.

McClelland’s Need Theory David McClella nd (1961) identified a series of needs not mentioned b y Maslo w or Alderf er. Of these, thr ee ha ve been associat ed with management and or ganizational beha vior. Needs f or po wer, achievement, and affiliation relate to many on-the-job issues.

The ne ed for achievement r eflects the degr ee t o w hich an indi vidual e xhibits the dri ve t o e xcel and gener ate accomplishments. Indi viduals with hig h needs f or achie vement t end t o tak e moder ate le vels of risk, depending on their confidence that the y can complet e the task. Those with hig h needs f or achie vement pr efer immed iate f eedback, v alue accomplishment as much as mone y and mat erial r ewards, t end t o become pr eoccupied with the task at hand, and ar e mor e lik ely than others t o become entr epreneurs. The y ar e mor e lik ely t o succeed in cir cumstances w here the y can dir ect acti vities and ar e personall y r esponsible f or out comes. As managers, the y ma y be less helpful t o emplo yees, concentr ating inst ead on their o wn pr oj- ects.

These individuals are also prone to stress-related problems.

McClelland pr oposed one additional not ed r elationship. Hig h needs f or achie vement w ere associat ed with entr epreneurial t endencies (McClelland, 1965). The logic in volved w as that a successful business is a tang ible indicat or of achie vement, an out come that w ould be v alued and important to someone with such a need.Those with lo w needs f or achie vement ar e inclined t o cr eate self-fulfilling pr ophecies of f ailure. The y ma y lack confidence and a void challenges. Some e vidence suggests that the need f or achie vement can be taug ht or enhanced thr ough tr aining that incr ementally cr eates successes. Each time a per son successfull y complet es a task, assign - ment, or tr aining e xercise, his or her confidence gr ows, e ven if just mar gin- ally.

These successes, in turn, inspir e the willingness t o tackle mor e difficult challenges (McClelland, May 1965).

The ne ed for power is the dri ve t o mak e others beha ve in w ays the y DragonImages/iStock/Thinkstock According to McClelland, effective management arises out of several different individual needs, which must be tempered by self-knowledge and maturity.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Early Motivation Theories Section 4.2 would not otherwise choose . When pr operly channeled, the need f or po wer can be r elated t o managerial success. T o use po wer eff ectively, an indi vidual should not cr eate or wield po wer in pursuit of personal goals and should not place influence ahead of eff ective perf ormance (Kipnis, 1974).

McClelland (1976) ar gued that empirical r esearch indicat es that good managers ar e moti - vated b y a need f or po wer, and t empered b y maturity and self-contr ol. He belie ved that w ork- shops could be de veloped t o help managers disco ver w hether the y ha ve the corr ect moti va- tional pr ofile t o become a bett er manager . Not e that this r elationship w ould onl y hold w hen the manager seek s t o influence others t o help them achie ve hig her le vels of perf ormance and not when the goal is simply to “boss people around” as a demonstration of personal power.

The ne ed for affiliation , w hich is lik e the social needs identified b y Maslo w and r elationship needs in Alderf er’s appr oach, r eveals a need f or close int erpersonal r elationships, including joining gr oups and seeking lo ve or friendship. Hig h needs f or affiliation can be a detriment t o becoming a successful manager , as these indi viduals w orry t oo much about the opinions and per ceptions of others (Wint er, 2001). Indi viduals with lo w needs f or affiliation w ho ar e not in managerial r oles will be mor e comf ortable in mor e iso lated positions. Indi viduals with hig h needs f or affiliation should be placed int o jobs with gr eater degr ees of int eraction with the public or with peers.

Motivational needs theory has v alue in tw o ar eas. Firs t, the appr oach can help pr edict the types of jobs best suit ed t o v arious indi vidual personalities as w ell as chances f or success in managerial positions. A person with a hig h need f or affiliation will be bett er suit ed t o a job in w hich int eractions with co workers and the public tak e place, such as sales or cust omer service.

A pers on with hig h need f or achie vement fits best in jobs in w hich tangible e vidence of success is r outinely pr ovided. Second, the theory e xplains cir cumstances in w hich an emplo yee may become dissatisfied because the job does not match his or her need profile.

The primary criticism of McClelland’s appr oach w as about the r esearch method. The The- matic Apper ception T est w as used t o disco ver the v arious types of needs indi viduals w ould e xpress. Unf ortunately, the t est is pr one t o the social-desir ability r esponse bias pr oblem, in w hich a subject shields or hides his or her true f eelings or needs t o appear t o be sociall y acceptable.

Consequentl y, the t est ma y or ma y not r eveal a person ’s r eal set of needs or the degr ee to which a person feels any given need.

Further, this appr oach is not a complet e theory but r ather onl y identifies v arious needs. No method is described t o e xplain ho w v arious le vels of needs, hig h or lo w, w ould become manif est as beha viors. Consequentl y, it cannot be view ed as an encompassing e xplanation of moti vation.

Herzberg’s Two-Factor Theory Frederick Herzber g’s tw o-factor theory pr oposes that a certain set of f actors is r esponsible f or w orkplace dissatisf action, w hile another set is r esponsible f or w orkplace satisf action. Herzber g based the theory on anal ysis of int erviews with mor e than 200 accountants and engineers (He rzberg, Mausn er, & Sn yderman, 1959). The theory has also been described as moti vation-hygiene theory , because Herzber g calls the f actors that aff ect satisf action “moti va- tors” and the factors that cause dissatisfaction “hygiene factors” (see Table 4.3). \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Early Motivation Theories Section 4.2 Table 4.3: Hygiene factors and motivators Hygiene factorsMotivators Wages Achievements Hours Recognition Working conditions Actual work or job Relationships with supervisors Responsibility Relationships with peers Chance for advancement/growth Range:

Dissatisfaction → No SatisfactionRange:

No Satisfaction → Satisfaction Sources: Adapted from Whitsett, D. A., & Winslow, E. K. (1967). An analysis of studies critical of the motivation-hygiene theory.

Personnel Psychology, Winter, 391–414; Ivancevich, J. M., Lorenzi, P., Skinner, S. J., & Crosby, P. B. (1997). Management:

Quality and competitiveness. New York, NY: McGraw-Hill/Irwin.

Hygiene factors ar e maint enance f actors: The y ar e char acteristics of a job that do not incr ease satisf action or moti vation, but their absence cr eates job dissatisf action. Ex amples of h ygiene f actors mig ht include the w ages a w orker is paid or the hours a person is ask ed t o w ork. The most that can be achie ved with h ygiene f actors is t o k eep them neutr al. The t erm h ygiene r eflects conditions in a hospital. A dirty hospital will mak e y ou sick (dissatisf action). A sparkling clean hospital will not make you well (no new satisfaction).

The second set of f actors, moti vators, is deri ved fr om personal eff ort and perf ormance. The corr esponding r ecognition, incr eased r esponsibility, and opportunity f or personal gr owth as w ell as pr omotion t o a hig her r ank pr ovide incenti ves t o try har der. When these f actors ar e missing, no moti vation occurs. When the y ar e pr esent or ar e added, moti vation incr eases. Consequentl y, the y should be built int o the job thr ough pr ograms such as job enrichment , w hich enhances the known motivators in each individual job or occupation.

The E dward Jones e xample demonstr ates ho w tw o-factor theory w orks in a business or ga- nization.

The compan y’s pa y and benefit pr ogram r emoves an y pr oblems associat ed with h ygiene f actors and dissatisf action. The use of gr oup bonus incenti ves as w ell as indi vidual incenti ves f or perf ormance builds achie vement and r ecognition int o the job, w hich includes friendl y int eractions with cust omers and co workers pl us the challenge of cr eating financial portf olios that serv e indi vidual needs. The opportunity t o become a limit ed partner in the firm adds the chance f or gr owth int o the mix. It should not be surprising, then, that the com - pany enjoys a satisfied and motivated workforce.

A series of challenges ha ve been r aised about tw o-factor theory . First , the t erms “moti vation” and “satisf action” ar e being used int erchangeably, w hen the y ar e not , in f act, e xactly the same. A person can stat e he or she is “satisfied” because “I don ’t ha ve t o do an ything—just collect a check.

” In other w ords, “I’m satisfied because I don ’t ha ve t o be moti vated.” Another indi vidual mig ht r eport e xtreme dissatisf action and moti vation as its r esult, as in, “I hat e w orking thir d shift (w orking conditions), so I’m going t o try e xtra har d t o get pr omoted so I can w ork da ys.” The bott om line is that e ven thoug h other combinations ar e possible, tw o-factor theory onl y accounts f or cir cumstances in w hich indi viduals ar e satisfied and moti vated or dissatisfied and unmotivated as a consequence.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Early Motivation Theories Section 4.2 Second, man y not e that accountants and engineers ar e not necessaril y r epresentative of e very type of occupation. Int erviews of construction w orkers mig ht r esult in diff erent ans wers r egarding w orkplace satisf action and moti vation, as w ould ans wers gi ven b y emplo yees fr om other countries and cultures.

Despite these criticisms, man y managers belie ve the tw o-factor theory helps e xplain w ork- place dissatisf action. One of the str engths of tw o-factor theory , w hen compar ed t o other need- based theories, is that the r esearch w as conduct ed in an emplo yment setting and f ocused on moti ves that w ould be pr esent in the w orkplace, r ather than mor e gener al moti ves that mig ht appl y in other situations, such as at home w hen dealing with f amily members or a spouse, in a place of w orship, or w hen supporting a candidat e f or political office. F urther, the concept of making jobs mor e int eresting and challenging r esonates with managers, emplo yees, and the academic community . Thus, tw o-factor theory continues t o be a popular method f or e xamin- ing the workplace environment.

In summary , the need-base d theories, or cont ent theories, f ocus on r elationships betw een needs and w orkplace beha viors. Maslo w’s hier archy of needs, a satisf action–progression model, tr aces the pr ogression of needs thr ough ph ysiological, saf ety, social, est eem, and self- actualization stages. Alderf er’s ER G theory suggests needs e volve fr om e xistence t o r elated- ness t o gr owth, or ph ysical t o social t o ps ychological. Alderf er accounts f or frustr ation– regression, in w hich an indi vidual w ho cannot meet a hig her-level need becomes frustr ated and f eels the lo wer-level need mor e str ongly. McClelland’s need theory e xamines the impact of the needs f or achie vement, po wer, and affiliation on an indi vidual’s moti ves, w hich can be tr anslated t o w orkplace settings. Herzber g’s tw o-factor theory suggests that a series of con - textual job features cannot satisfy employees, but can lead to dissatisfaction or satisfaction. Comprehension Exercise 1. The concept of humanism, that people are basically good, provides the basis for a. Maslow’s hierarchy of needs.

b. Alderfer’s ERG theory.

c. McClelland’s need theory.

d. Herzberg’s two-factor theory.

2. Factors that do not contribute to motivation in two-factor theory are known as a. frustration–regression factors.

b. motivational cognitions.

c. hygiene factors.

d. content factors. Answers: 1) a 2) c \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Approaches: Organizational Behavior Modification Section 4.3 4.3 C ontemporary Approaches: Organizational Behavior Modification Many theories in ps ychology can be link ed t o mor e than one t opic in or ganizational beha vior. R einforcement theory , based on Skinner’s oper ant pr ocess model, pr esents an e xample. R ein- forcement aff ects ho w and w hat people learn, as w as described in the chapt er on learning (Chapt er 3). R einforcements also can be used t o change beha viors—what cogniti ve theorists w ould label “moti vating” emplo yees. R einforcement theory also has applications t o theories of personality development.

We ha ve alr eady e xamined the essential ingr edients in r einforcement theory —positive and neg ative r einforcement, punishment , and e xtinction—and pr ograms t o deli ver r einforce- ments with continuous and int ermittent schedules. This chapt er will e xamine another oper ant pr ocess theory , or ganizational beha vior modification (OB Mod), w hich demonstr ates ho w the principles of reinforcement theory can be systematically built into a company’s operations.

OB Mod is a business-based pr ogram de veloped b y F red Luthans that off ers simple, eas y-to- follow st eps that will enhance perf ormance (Luthans & Kr eitner, 1975)—essentiall y a busi - ness “cook book” of sorts. Th e s ystem has been successf ully applied in se veral business or ga- nizations.

The steps of an OB Mod program are as follows:

1. Identify critical, performance-related behaviors.

2. Find ways to observe and count the behaviors.

3. Conduct a functional analysis associated with the behaviors.

4. Design a program to change or modify the behaviors.

5. Run the program.

6. Follow up. Identify Critical Behaviors Perhaps the most important st ep in the plan is the first one. If managers f ail t o identify the critical beha viors and inst ead identify onl y unimportant beha viors, then e very- thing that f ollows will be gear ed t o the wr ong acti vities. Also, if managers f ocus on emplo yee attitudes r ather than beha viors, no eff ective w ay t o mak e the s ystem w ork will sur face (L uthans, 1988). T able 4.4 sug - gests a series of critical beha viors in thr ee industries.

As an e xample, consider w hat mig ht tak e place in an upscale r etail chain st ore in a do wntown location of a major city . The r etailer’s t op management has identified tw o k ey perf ormance indicat ors f or the st ore: sales and “in ventory shrink age” (st o- len mer chandise). Based on discussions with Pe-art/iStock/Thinkstock Managers must be able to identify those behaviors that have an impact on performance, otherwise they risk investing time in unproductive tactics.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Approaches: Organizational Behavior Modification Section 4.3 supervisors, it becomes e vident that those tw o perf ormance indicat ors ar e most impact ed b y thr ee critical beha viors perf ormed b y staff: (1) sta ying on station in the part of the st ore t o w hich the y ha ve been assigned, (2) gr eeting cust omers within 30 seconds of arri val in their ar eas, and (3) maintaining and arr anging mer chandise. Sta ying on station r educes in ventory shrink age (shoplifting) thr ough observ ation of people in the ar ea. Gr eeting cust omers per- sonalizes the shopping e xperience: people int ending t o shoplift ar e no longer st ealing fr om a st ore; inst ead, the y ar e st ealing fr om that nice person w ho just said “hello ” (w hich is w hy st ores such as W almart plac e gr eeters at the fr ont of the st ore). Arr anging mer chandise mak es shopping easier and increases sales. Table 4.4 provides a summary of critical behaviors. Table 4.4: Critical behaviors by industry ManufacturingServiceRetail Number of units produced Calls returned on timeStaying “on station” Number of defects Polite treatment of customer Greeting customers Attendance Paperwork completed correctly Arranging/maintaining mer chandise Punctuality Problems resolvedPolitely giving directions to other departments Machine maintenance Pr oper handling of returns and e xchanges Following safety rules Observe and Count Critical Behaviors Numerous methods ma y be used t o monit or emplo yee and cust omer beha viors. Managers can dir ectly view emplo yees on the job, emplo y video surv eillance, or observ e acti vities thr ough v arious other means. These beha viors can then be r ecorded or count ed in some w ay, manu- all y or in a database.

Conduct a Functional Analysis A functional anal ysis serv es the purpose of disco vering w hich ant ecedents or stimuli ar e con - nected t o desi red beha viors and w hich lead t o undesir ed beha viors. In his writings, Luthans (1988) has utilized tw o f orms of functional anal ysis: Ant ecedent-Behavior-Consequence (ABC) and Stimulus-Or ganism-Behavior-Consequence (SOBC). Not e that an ant ecedent and a stimulus are the same thing.

Antecedents and stimuli that lead t o desir ed beha viors include the pr esence of a supervisor , r eminders thr ough signs post ed in the w orkplace, and e ven the compan y of a w ell-respected colleague or peer . A ntecedents and stimuli that pr ecede undesir ed be havior can tak e a v ari- ety of f orms. The c onsequence becomes unpr oductive time inst ead of w orking on job-r elated task s. A clock in plain view can cause emplo yees t o anticipat e br eaks, lunchtime, and the end of the da y r ather than the w ork at hand. A visible w ater cooler with a nonchalant emplo yee lingering beside it in vites others t o come and visit r ather than sta y on task. E ven an attr active member of the opposit e se x ma y distr act a w orker fr om a job assignment . In each instance \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Approaches: Organizational Behavior Modification Section 4.3 the ant ecedent or stimulus dir ectly connects t o non-desir ed beha viors and unf avorable con - sequences (lost sales; increase shoplifting).

In the r etail st ore, the w ater cooler mig ht entice w orkers t o w ander off station and a way fr om arr anging mer chandise or gr eeting cust omers on time. Also, social clust ers t end t o f orm in ar eas that ar e not as obser vable fr om management of fices, such as a lunch r oom or br eak r oom. The pr esence of a supervisor as an ant ecedent or stimulus w ould lead t o mor e att entive w ork beha viors and mor e desir able consequences (w ell-organized mer chandise, incr eased sales, lower shrinkage).

Design a Program Next, the f ocus of OB Mod shifts t o designing a pr ogram that incr eases desir able beha viors and discour ages un wanted beha viors. In k eeping with the spirit of Skinner’s w ork, the OB Mod pr ogram does not r ecommend the use of punishment alone t o achie ve these changes. Althoug h it can be incorpor ated int o the pr ogram, Luthans suggests w ays t o alt er beha viors using other means. Three resulting alternatives are listed here.

1. Positive reinforcement only: Desired behaviors are identified and rewarded.

2. Positive reinforcement and punishment: Desired behaviors receive rewards and undesir ed behaviors are punished.

3. Positive reinforcement and extinction: Desired behaviors are rewarded and either (a) the stimuli that lead to pleasant consequences associated with undesired behav- iors (such as the water cooler) are removed, or (b) the consequences themselves are someho w diminished.

In the r etail st ore, the pr ograms could use elements of positi ve r einforcement and e xtinction. Desir ed beha viors could be r ewarded, first with on-the-spot cash r ewards and lat er with con - test prizes. Extinction could in volve not r emoving the w ater cooler but r ather simpl y blocking the view fr om the r etail floor , w hich w ould mean no one could see if another emplo yee w as getting a drink. In an int eresting twist , an element of neg ative r einforcement could be added: Aft er the st ore closes each nig ht, cler ks cannot lea ve until mer chandise is full y back in its place.

Run the Program When conducting the pr ogram, adequat e instruction should be gi ven t o all parties in volved. Supervisors will kno w w hat t o observ e and ho w t o r espond (r eward, punish, e xtinction). Emplo yees are notified that certain behaviors are important and will be recognized.

To implement such a pr ogram, the r etail st ore supervisors could be gi ven bundles of dollar bills and t old t o distribut e them w hen the y observ ed salespeople on station with mer chandise arr anged and those that gr eeted cust omers in a timel y f ashion, o ver a period of tw o w eeks. Appr oaches such as these ha ve been successful in other r etail st ores, with sales incr easing and shrink age r educed. T o establish the beha viors mor e permanentl y, a cont est could be held and emplo yees could r eceive prizes f or maintaining the desir ed beha viors o ver longer peri- ods of time. The contest would last six months.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Approaches: Adams’s Equity Theory Section 4.4 Follow Up The f ollow-up st ep ensur es that the desir ed beha viors w ere identified, that the ABC or SOBC anal ysis corr ectly identified path ways t o desir ed and undesir ed beha viors, and that the pr o- gram achie ved the desir ed r esults. Pr ograms that succeed ma y be institutionalized or r efined f or futur e use. Pr ograms that do not lead t o positi ve r esults ar e e valuated, beginning with the first st ep. W ere the corr ect beha viors identified? If so, then other elements of the pr ogram deserv e att ention. It ma y ha ve been, f or e xample, that emplo yees did not trul y desir e the r ewards that were offered.

In the case of the r etail st ore, pr ograms lik e the one described in this section ha ve yielded both short-t erm and long-t erm success. The principles g ained fr om the k ey perf ormance- related beha viors w ere then incorpor ated int o new emplo yee tr aining and manager tr aining pr ograms.

In summary , or ganizational beha vior modification emplo ys the principles of r einforcement theory and Skinner’s oper ant pr ocess model. The pr ogram f ocuses on specific, perf ormance- related beha viors that managers can observ e and count . A functional anal ysis identifies path- w ays t o desir ed and undesir ed beha viors. Pr ograms consisting of positi ve r einforcement, and sometimes punishment or e xtinction ar e designed and implement ed. R esults can then be ana- l yzed t o see if the appr opriate beha viors ha ve been modified and if perf ormance measur es impr ove.

4.4 Contemporary Approaches: Adams’s Equity Theory As the tw entieth century unf olded, an incr easing emphasis on understanding w orker ps y- chology emer ged. The tr end influenced studies of numer ous or ganizational phenomena, including moti vation. While it w as clear that applicatio ns of oper ant pr ocess theories could demonstr ate tangible r esults, other emplo yee r eactions continued t o r equire att ention and Comprehension Exercise 1. The “C” in ABC or SOBC in an organizational behavior modification program stands for a. continuum.

b. convergence.

c. consistency.

d. consequence.

2. Which is not a recommended program in OB Mod?

a. positive reinforcement only b. positive reinforcement and punishment c. punishment only d. positive reinforcement and extinction Answers: 1) d 2) c \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Approaches: Adams’s Equity Theory Section 4.4 study. Thus, in a manner lik e w hat occurr ed in the stud y of learning, in w hich int ernally gen - erated and e xternally gener ated e xplanations w ere off ered, r esearch in moti vation w as subdi - vided int o studies of operant and cogniti ve process models. The two most noteworthy cogni- tive pr ocess models ar e (1) A dams’s equity theory , w hich will be discussed in this section, and (2) Vroom’s expectancy theory, which will be described in Section 4.5.

The essence of equity theory , pr e- sented b y J. Stacy A dams in 1963, can be described as f ollows: When people per ceive their situation at w ork as being f air or equitable, the y ar e mor e lik ely t o r emain moti vated at the le vel the y ha ve al ways been. When the y per ceive their situation as unf air or inequitable, the y ar e pr one t o dissat - isfaction and ther e will be a neg ative impact on their levels of motivation. Key Principles Many people ha ve w orked in jobs w here things just do not seem f air. E quity theory and concepts r egard- ing or ganizational justice e xplain ho w the y of ten r eact.

The theori es account f or f eelings that arise w hen per ceptions of inequality or inequity tak e place. The f eelings r esult fr om observ ations of w hat happens t o an indi vidual and to others around that person. Inputs and Outcomes At w ork, people e xchange inputs f or out comes. Inputs include e verything an emplo yee tr ades with an or ganization, e xpecting something in r eturn. Ex amples of inputs include education, e xperience, special skills, le vels of eff ort and pr oductivity, helpfulness t o others, cr eativity or suggestions, and even personal appearance.

Outcomes ar e the things the or ganization pr ovides in e xchange f or inputs. Out comes include pa y, pr aise, chances t o be pr omoted, status s ymbols (co rner office; r eserved par king space), compan y benefits, job assignments, r ecognition, job security , and inclusion in or ganization planning and decision making.

Presence of a Referent Other A r eferent other is a person an emplo yee chooses f or purposes of making social compari - sons. In other w ords, an emplo yee is lik ely t o sing le out someone at w ork or in some other or ganization f or the purpose of e xamining inputs and out comes. Most of the time, a r eferent other will be an indi vidual w ho w as hir ed at about the same time and perf orms the same or a compar able job. In other cir cumstances, diff erent f orms of r eferents ar e select ed, as displa yed in Table 4.5. Berezko/iStock/Thinkstock Equity differs from equality in that equitable treatment must be proportional, whereas equal treatment need only be uniform.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Approaches: Adams’s Equity Theory Section 4.4 Table 4.5: Potential referent other comparisons Self inside the companyThe employee compares a new position or job to a previous position or job in the same company.

Self outside the company The employee compares a current position or job to a previous position in a different company.

Other inside the company The employee compares a current job or position with another person or group within the same company.

Other outside the company The employee compares a current job or position with another person or group in a different company.

The Comparison No matt er w hich type of r eferent emer ges, the emplo yee mak es a comparison of input- out come r atios. These ar e “gi ve-get” r elationships, or , “w hat I gi ve and get v ersus w hat m y r eferent other gives and gets,” as shown next. Personal outcomesv ersusReferent other outcomes Personal inputs Referent other inputs Perceptions of Equity Equity occurs w hen the r atio comparison is per ceived as being in balance, or as f air. F or instance, Joe w orks at a local Dairy Queen r estaurant, w here he w as hir ed b y his friend Susan. Joe’s out comes include pa y of $7.25 per hour and fle xible scheduling in w hich he can s witch shifts with other emplo yees if he desir es a particular nig ht fr ee. His inputs in volve serving cust omers, cleaning the st ore, counting the cash dr awer at nig ht, and r estocking the pr epara- tion area.

Susan is the nig ht manager . Her out comes include pa y of $9.75 per hour and f ood pur chase discounts.

Her inputs include hiring, tr aining, and firing emplo yees, completing dail y r eport sheets, w orking on a fix ed schedule with no shift s witching, plus serving cust omers, cleaning, and helping stock the prep area.

Although Susan earns $2.50 per hour mor e, Joe belie ves the diff erential is equitable. Susan gi ves mor e t o get mor e. Joe gi ves less and r eceives less. When such a sense of equity or equi - librium e xists, beha vior is maintained . Recalling that the definition of moti vation includes “w hat maintains beha vior,” a sense that things ar e equitable or f air means an emplo yee will encour age an emplo yee t o k eep w orking at the same pace and with the same le vel of int ensity.

Perceptions of Inequity Many times, a r eview of pers onal and r eferent other inputs and out comes leads t o the per cep- tion that the f ormula is not in balance. This cir cumstance, inequity , or disequilibrium r esults in a str ong moti vational f orce (a cogniti ve pr ocess) t o r estore equilibrium. In other w ords, the indi vidual f eels compelled t o someho w adjust the components in the input-out come r atio. T able 4.6 represents the types of reactions that are possible.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Approaches: Adams’s Equity Theory Section 4.4 Table 4.6: Reactions to perceptions of inequity Activity Example Change personal outcomes Ask for a pay raise Change personal inputs Try harder; reduce effort Influence referent other outcome Encourage referent other to ask for a raise Influence referent other inputs Encourage referent other to try harder or reduce eff ort Change referent other Look at outcomes and inputs of someone different Rationalize Add elements to the formula, such as time horizon Leave the field Quit the job The first set of adjustments involves a perception described as “positive inequity.” Personal outcomes>R eferent other outcomes Personal inputs Referent other inputs This f ormula suggests that the person in volved has r eached the conclusion that he or she is o verpaid. Using the pot ential r esponses not ed in T able 4.6, a person w ho f elt o verpaid could (1) try har der and pr oduce mor e t o justify the diff erence, (2) change comparisons t o a r efer- ent other w ho earns mor e, or (3) r ationalize that the pa y diff erence w as based on seniority or some other factor not previously considered.

The other form of disequilibrium, sometimes called “negative inequity,” would be as follows: Personal outcomes

Equity Theory and Organizational Justice The ba sic pr emise that inequity e xists w hen input-out come r atios diff er is f ounded in the principles established b y the theory of distributi ve justice, w hich posits that people should r eceive in pr oportion t o w hat the y gi ve in society (Gr eenberg, 1996), and w hich applies t o the allocation and amount of out comes. F urther, per ceptions of equity ar e influenced b y conclu - sions r egarding the pr esence of pr ocedural justice, a t erm used t o describe the f airness of a pr ocess, such as a performance appraisal program or pay raise system.

Research indicat es that per ceptions of distributi ve justice r elate t o degr ees of job satisf action (Daile y & Kir k, 1992). In other w ords, the conclusion that one’s inputs in t erms of time, eff ort, and the willin gness t o cooper ate ar e mat ched b y appr opriate le vels of outputs in t erms of \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Approaches: Adams’s Equity Theory Section 4.4 pay, pr omotion, positi ve perf ormance appr aisals, and supervisor r ecognition lead to job satisfaction. F urther, per ceptions of pr ocedural jus - tice influence trust le vels with a super- visor , commitment t o the or ganization, and int entions t o quit a job. This find- ing suggests that w hen emplo yees con - clude that or ganizational s ystems ar e f air and ar e carried out r easonably b y management , then the y trust those in char ge and e xhibit str onger commit - ment t o the firm. F airness principles such as these w ould appl y t o r eward s ystems (pa y, pr aise, pr omotions) as w ell as di scipline s ystems (rules enf orcement).

Distributive justice and pr ocedural justice contribut e t o per ceptions of o verall or ganizational justice, w hich also includes int eractional justice and int erpersonal justice, or the w ay a per- son is tr eated b y people of hig her r ank in the or ganization (Gr eenberg, 1987). Int eractional justice and int erpersonal justice ar e t erms used t o descr ibe per ceptions of ho w a person f eels he or she is tr eated b y those at hig her le vels, such as with a r easonable attitude and r espect or disd ain and distance. Th ese f eelings ar e less lik ely t o influence per ceptions of equity and inequity r egarding inputs and outputs, f ocusing inst ead on r eactions t o the specific indi vidual in volved. One e xception w ould be w hen a manager’s demeanor and tr eatment of subor di- nates reflects a clear bias in which some are treated more favorably than others.

Support for Equity Theory Equity theory enjo ys signifi cant theor etical support . Fi rst, the concept of e xchanging inputs f or out comes has a basis in the concept of a ps ychological contr act (Schein, 1980). P sycho- logical contr acts ar e sociall y and mentall y construct ed sets of e xchanges, such as the di vi- sion of housework betw een two spouses or partners, or the le vel of work in e xchange f or the le vel of pa y on the job. When ps ychological contr acts ar e violat ed, neg ative r eactions occur . The ps ychological contr act concept has been w ell r eceived f or man y y ears. Second, the idea that people compar e themsel ves t o one another is based on the str ongly established social comparison theory (F estinger, 1954). Thir d, the t endency t o act on disequilibrium has its basis in concepts of cogniti ve dissonance (F estinger, 1957). Cogniti ve dissonance, or mental disharmon y, cr eates a mental f orce seeking t o r esolve the discor d or dissonance. Cogniti ve dissonance leads to the reactions displayed in Table 4.6.

Complications With Equity Theory Initial or ganizational r esearch supports the basic pr edictions of r eactions b y indi viduals t o per ceptions of inequity (Scheer , K umar, & St eenkamp, 2003). A t the same time, a series of complications ha ve been associat ed with the w ork. F or e xample, people appar ently r espond Vectoraart/iStock/Thinkstock Consider the functions of distributive and procedural justice. Have these principles been at play in your current or previous workplaces? If so, in what form were they implemented?

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Approaches: Adams’s Equity Theory Section 4.4 differently t o inequitable cir cumstances. E quity “sensiti ves” belie ve firml y in r eciprocity and become quickl y moti vated t o r esolve f eelings of being o ver- or underpaid. E quity “bene vo- lents” ar e mor e altruistic and less bother ed b y being underpaid or b y neg ative equity r ela- tionships.

E quity “entitleds” r espond most vigor ously t o neg ative equity or underpaid cir cum- stances and ma y r emain frustr ated until positi ve equity or an o verpaid comparison appears (Saule y & Bedeian, 2000). The e xtent t o w hich an indi vidual r eacts t o per ceptions of inequity has been labeled equity sensiti vity (Bing & Burroughs, 2001).

Also, and not surprising ly, per ceptions of being o verpaid do not seem t o change a person ’s beha viors at w ork, possibl y because indi viduals so quickl y r ationalize diff erences in out comes (St eers, 1996). The theory does not account f or the po wer of the r ationalization pr ocess in o verpaid, as opposed to underpaid, situations.

Managers do not cho ose w ho someone sing les out f or a social comparison, and the choice could be complet ely inappr opriate. F or instance, if a new , fr esh-out-of-college supervi- sor compar es himself t o a supervisor with eig ht y ears of e xperience, it mig ht r esult in inac - curate perceptions of deserved outputs as well as inputs.

Finally, equity theory ma y r epresent thoug ht pr ocesses in the Unit ed Stat es, but not in other cultur es. Man y national cult ures do not contain str ong opinions r egarding distributi ve justice. In other , f ormerly communist countries, f eelings of entitlement can supersede per ceptions of equity and dis tributive justice. Ther efore, the theory sh ould be consider ed as cultur e bound (Giacobbe-Miller , Miller, & Victorov, 1998).

Managerial Implications The principles f ound in equity theory off er v alue t o managers. First , a supervisor can mak e certain that the equity comparisons made b y t op per formers r eceive the most att ention. Doing so can go be yond pa y and benefits. T op perf ormers can r eceive pr eferential tr eatment in t erms of scheduling br eaks during the w ork da y, v acations, and other nonfinancial signals r elated t o their w orth. A t the same time, each emplo yee should belie ve that the r eward s ys- tem is f air and not simpl y based on personal pr eferences of the manager . Thr ough on-the- job f eedback and the perf ormance appr aisal s ystem, w orkers can understand w ho the t op, middle, and low performers are in a department.

Second, managers can emplo y equity theory t o understand w hy w orkers become dissatisfied and seek t o lea ve a compan y. It pr ovides a fr amework f or understanding ho w emplo yees r eact. E quity theory can be applied t o indi vidual w orkers as w ell as t o sets of emplo yees. A gr oup of w orkers w ho belie ve the y ar e underpaid on an hour ly basis will lik ely r educe pr oduction per hour . An indi vidual w ho belie ves he or she trul y is o verpaid ma y r espond b y incr easing the quality of w ork t o mat ch the quantity of output . The bott om line is that equity theory pr ovides a quality prism f or viewing emplo yee r esponses on the job. The f eature bo x OB in A ction: High- Tech Discrimination Lawsuits notes some of the implications of equity theory. OB in Action: High-Tech Discrimination Lawsuits In late 2015, Microsoft experienced a lawsuit alleging gender discrimination and bias in salaries and promotion decisions by a former employee. The individual, Katie Moussouris, had moved on to a leadership position in another tech company. “What happened to me is not unique,” Moussouris said in a statement. “This case will illuminate the broad patterns of decision-mak - ing against women. Fundamentally, this is about fairness and equality” (Rao, 2015, para. 8).

Earlier in the year, Twitter and Facebook also had been sued. In the case of Facebook, the charges went beyond gender discrimination to include racial discrimination and sexual harass- ment. At Twitter the charges focused on favoring women over men in promotion decisions.

As is the case when allegations are made, a top executive may be the main target of criticism. When Microsoft executive Satya Nadella said that women in technology should not ask for raises but trust that the system would reward them, his remarks elicited intense criticism.

The technology industry does not stand alone. The Institute for Women’s Policy research noted that in 2015 the pay gap between men and women continued to stand at 20%, wherein a woman performing the same job could expect to receive a rate of pay at 80% of what a man would be paid (Hegewisch & DuMonthier, 2016).

In high-tech firms, such inequity in pay structure might create even greater damage. The num- ber of highly qualified and talented individuals is limited. Further, creating a level of dissat- isfaction great enough to cause a person to leave and subsequently file a lawsuit can injure company’s long-term reputation and standing.

Reflection and Application Questions 1. How would women who experience pay and promotion discrimination be described in the terms present in equity theory?

2. How do the concepts of distributive justice and procedural justice apply to discrimina- tion and harassment in these circumstances?

3. Explain the potential impact of a pattern of discrimination in terms of recruiting, selec- tion, and retention of quality employees in a high-tech company.

Comprehension Exercise 1. Perceptions of how organizational leaders make decisions and the processes used to make those decisions are related to a. distributive justice.

b. procedural justice.

c. operational justice.

d. elemental justice.

2. The extent to which an individual reacts to perceptions of inequity is known as a. equity expectations.

b. perceptual identification.

c. cognitive reasoning.

d. equity sensitivity. Answers: 1) b 2) d \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Approaches: Adams’s Equity Theory Section 4.4 differently to inequitable circumstances. Equity “sensitives” believe firmly in reciprocity and become quickly motivated to resolve feelings of being over- or underpaid. Equity “benevo- lents” are more altruistic and less bothered by being underpaid or by negative equity rela- tionships. Equity “entitleds” respond most vigorously to negative equity or underpaid circum- stances and may remain frustrated until positive equity or an overpaid comparison appears (Sauley & Bedeian, 2000). The extent to which an individual reacts to perceptions of inequity has been labeled equity sensitivity (Bing & Burroughs, 2001).

Also, and not surprisingly, perceptions of being overpaid do not seem to change a person’s behaviors at w ork, possibly because individuals so quickly rationalize differences in outcomes (Steers, 1996). The theory does not account for the power of the rationalization process in overpaid, as opposed to underpaid, situations.

On a more practical level, the potential number of social comparisons that could be made within an organization is unmanageable. A company with just 10 rank-and-file employees would still present many potential comparisons in the category of “other inside the company” alone. Managers do not choose who someone singles out for a social comparison, and the choice could be completely inappropriate. For instance, if a new, fresh-out-of-college supervi- sor compares himself t o a supervisor with eight years of experience, it might result in inac- curate perceptions of deserved outputs as well as inputs.

Finally, equity theory may represent thought processes in the United States, but not in other cultures. Many national cultures do not contain strong opinions regarding distributive justice. In other, formerly communist countries, feelings of entitlement can supersede perceptions of equity and distributive justice. Therefore, the theory should be considered as culture bound (Giacobbe-Miller, Miller, & Victorov, 1998).

Managerial Implications The principles found in equity theory offer value to managers. First, a supervisor can make certain that the equity comparisons made by top performers r eceive the most attention. Doing so can go beyond pay and benefits. Top performers can receive preferential treatment in terms of scheduling breaks during the work day, vacations, and other nonfinancial signals related to their worth. At the same time, each employee should believe that the reward sys- tem is fair and not simply based on personal preferences of the manager. Through on-the- job feedback and the performance appraisal system, workers can understand who the top, middle, and low performers are in a department.

Second, managers can employ equity theory to understand why workers become dissatisfied and seek to leave a company. It pr ovides a framework for understanding how employees react. Equity theory can be applied to individual workers as well as to sets of employees. A group of workers who believe they are underpaid on an hourly basis will likely reduce production per hour. An individual who believes he or she truly is overpaid may respond by increasing the quality of work to match the quantity of output. The bottom line is that equity theory provides a quality prism for viewing employee responses on the job. The feature box OB in Action: High- Tech Discrimination Lawsuits notes some of the implications of equity theory. OB in Action: High-Tech Discrimination Lawsuits In lat e 2015, Micr osoft e xperienced a la wsuit alleging gender discr imination and bias in salar ies and pr omotion decisions b y a f ormer emplo yee. The indi vidual, Katie Moussour is, had mo ved on t o a leader ship position in another t ech compan y. “What happened t o me is not unique, ” Moussour is said in a stat ement. “This case will illuminat e the br oad patt erns of decision-mak- ing against women. Fundamentally, this is about fairness and equality” (Rao, 2015, para. 8).

Earlier in the y ear, T witter and F acebook also had been sued. In the case of F acebook, the char ges w ent be yond gender discrimination t o include r acial discrimination and se xual har ass- ment.

At Twitter the charges focused on favoring women over men in promotion decisions.

As is the case w hen alleg ations ar e made, a t op e xecutive ma y be the main tar get of criticism. When Micr osoft e xecutive Sat ya Nadella said that w omen in t echnology should not ask f or r aises but trust that the system would reward them, his remarks elicited intense criticism.

The t echnology industry does not stand alone. The Institut e f or W omen’s P olicy r esearch not ed that in 2015 the pa y g ap betw een men and w omen continued t o stand at 20%, wherein a w oman perf orming the same job could e xpect t o r eceive a r ate of pa y at 80% of w hat a man w ould be paid (Hegewisch & DuMonthier, 2016).

In hig h-tech firms, such inequity in pa y structur e mig ht cr eate e ven gr eater damage. The num - ber of hig hly qualified and talent ed indi viduals is limit ed. F urther, cr eating a le vel of dissat - isfaction gr eat enoug h t o cause a person t o lea ve and subsequentl y file a la wsuit can injur e compan y’s long-term reputation and standing.

Reflection and Application Questions 1. How would women who experience pay and promotion discrimination be described in the terms present in equity theory?

2. How do the concepts of distributive justice and procedural justice apply to discrimina- tion and harassment in these circumstances?

3. Explain the potential impact of a pattern of discrimination in terms of recruiting, selec- tion, and retention of quality employees in a high-tech company.

Comprehension Exercise 1. Perceptions of how organizational leaders make decisions and the processes used to mak e those decisions are related to a. distributive justice.

b. procedural justice.

c. operational justice.

d. elemental justice.

2. The extent to which an individual reacts to perceptions of inequity is known as a. equity expectations.

b. perceptual identification.

c. cognitive reasoning.

d. equity sensitivity. Answers: 1) b 2) d \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Approaches: Vroom’s Expectancy Theory Section 4.5 4.5 C ontemporary Approaches: Vroom’s Expectancy Theory A se cond cogniti ve pr ocess theory designed t o e xplain the r elationships betw een or ganiza- tional cir cumstances and emplo yee moti vation is e xpectancy theory (V room, 1964). Se veral v ariations of the theory ’s concepts ar e a vailable in the lit erature. Each v ersion contains thr ee primary elements: expectancy, instrumentality, and valence.Expectancy r epresents an indi vidual’s belief that a gi ven le vel of eff ort will r esult in the successful perf ormance of a task. A student w ho belie ves that stud y- ing f or at least 10 hours will lead t o a gr ade of “ A” on a t est e xpresses a hig h e xpectancy. A second student w ho has ne ver made a gr ade of “ A” on a t est mig ht conclude that no le vel of eff ort will r esult in the desir ed out come. Expectancy can be summarized as follows:

Effort Performance Instrumentality r eflects an indi vidual’s belief that successful perf ormance of a task will r esult in a specific out come or r eward.

A salesperson w ho kno ws that r eaching a specific sales tar get will r esult in a bonus holds a hig h instrumentalit y scor e.

A student w ho belie ves a pr ofessor does not lik e him and will not a ward a gr ade of “ A,” e ven f or an e xtremely w ell-written t erm paper , e xpresses an instrumentality scor e that is lo w or e ven zer o.

Instrumentality ma y be e xpressed as this link age: Performance Reward Valence is an e valuation of the v alue or attr activeness of a r eward and consists of tw o com - ponents.

The first is the w orth of the r eward t o the person.

If the prize in a pr oduction cont est is a new big-scr een t elevision, and all the cont estants r eally w ant a new TV , then the v alence of the prize will be hig h.

On the other hand, if the prize is tw o tick ets t o the county f air, and no one car es about going t o the e vent, the v alence of the out come will be lo w or zer o. The second component of v alence is the v alue associat ed with achie ving a goal or successfull y complet - ing a ta sk.

Winning the cont est pr ovides v alence associ ated with doing the best job during a specific time period on a given task. Calculating a Motivational Force As mentioned, se veral v ersions of the combinations of these v ariables ha ve been pr esented. A simple approach would be a multiplicative model, as follows:

Motivational Force (Intention to Give Effort) = Expectancy × Instrumentality × Valence Todd Warnock/DigitalVision/Thinkstock Vroom’s expectancy theory implies that performance is determined by an individual’s beliefs or expectations in a given situation.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Approaches: Vroom’s Expectancy Theory Section 4.5 Values can then be assigned t o each v ariable. Expectancy ma y be r ated fr om 0 t o 1 or 0% t o 100%.

A scor e of zer o means the indi vidual belie ves no link age betw een eff ort and perf or- mance e xists, or “No matt er ho w har d I try , I can ’t do it .” A scor e of 0.5 or 50% indicat es the person belie ves he or she has a 50–50 chance of success, gi ven a specific le vel of eff ort. A r at- ing of 1 or 100% indicat es the person has complet e confidence that , gi ven a certain le vel of personal effort, the individual can complete the task or achieve the goal.

The same f ormulation appli es t o instrumentality . A scor e of zer o means the person does not belie ve a r eward will be de livered f or successful perf ormance. A scor e of 50% suggests the indi vidual is uncertain abou t w hether the r eward will be deli vered. A v alue of 100% means the person e xpresses complet e confidence that achie ving a goal or successful perf ormance will be rewarded.

Assigning v alues t o v alence will be mor e pr oblematic. Scales can be used t o indicat e the v alue of a r eward fr om 1 = no v alue t o 7 = gr eat v alue, or sets can be used t o indicat e lo w, medium, and high degrees of valence. This means that some valences are more powerful than others.

Using this app roach, it will be possible t o see diff erences in the degr ee of moti vational f orce and mak e pr edictions abou t the le vel of eff ort that will be gi ven. Expectancy theory then e xplains the f ollowing: The hig hest le vel of eff ort w ould be e xpected w hen the indi vidual belie ves he or she can successfull y complet e a task (hi gh e xpectancy); that successful com - pletion of the task will r esult in a r eward (hig h instrumentality); and that the r eward itself has v alue (hig h v alence). Under an y other cir cumstance, the degr ee of moti vation diminishes (see T able 4.7). Notice also that if a scor e of zer o is assigned t o an y of the thr ee v ariables, the r esulting level of motivation will also be zero.

Table 4.7: Degrees of motivational force Motivational force = Valence × Instrumentality × Expectancy High = High× High× High Moderate = High× Moderate× High or moderate Low = Low or moderate × Low or moderate × Low or moderate Source: Szilagyi, A. D., & Wallace, M. J. (1980). Organizational behavior and performance (2nd ed.). Santa Monica, CA: Goodyear, 118.

As an e xample, a compan y’s management t eam decides t o hold its annual sales cont est. Win - ners and prizes ar e det ermined using thr ee crit eria: (1) new clients, (2) incr ease o ver pr evi- ous y ear’s sales as a per centage, (3) number of sales calls made that r esulted in new pr ospects, e ven thoug h no final sale w as made. Thr ee prizes ar e a warded each y ear: (1) an all-e xpense paid trip t o Ha waii during the wint er season, (2) a $2,0 00 gift certificat e t o an y st ore of the salesperson ’s choosing, and (3) a $500 cash award.

One salesperson has been the winner of the t op prize f or the past thr ee y ears. The indi vidual has a t erritory ripe with pr ospective new bu yers that ha ve not y et been contact ed. The person kno ws she has the ability t o turn pr ospects int o cust omers w hile incr easing sales or ders fr om e xisting clients. She loves Hawaii.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Approaches: Vroom’s Expectancy Theory Section 4.5 A second salesperson has finished f ourth f or the past tw o y ears. One of the pr evious t op thr ee winners has r etired. The salesperson has no pr oblem making contacts but has been disap - pointed a f ew times w hen a sale look ed good but then f ell thr ough and also think s her t erri- tory is less f avorable than those serviced b y others. The person w ould be thrilled t o win an y of the thr ee prizes but w orries about competition fr om new hir es, especiall y those in mor e f avorable territories.

The thir d salesperson has finished last , or ne xt-to-last, f or the past fi ve y ears. Althoug h he w ould lo ve winning, he has concluded that his t erritory is not suit ed t o g aining new pr ospects or clients. He is e xceptional at incr easing sales fr om e xisting clients and mak es a solid le vel of earnings from his commissions.

The compan y has a solid hist ory of f airly gr anting the prizes t o winners. In this situation, the first salesperson ’s moti vation w ould r emain quit e hig h, because v alence, instrumentality , and e xpectancy all ar e hig h. The second salesperson w ould ha ve had some doubts r egard- ing instrumentality , e ven thoug h v alence and e xpectancy ar e hig h and ma y e xhibit dimin- ished eff ort as a r esult. The thir d salesperson w ould pr obably not change his beha vior. While v alence and expectancy are high, instrumentality is quite low.

Advantages of Expectancy Theory Expectancy theory has been w ell r espected as an appr oach t o understanding moti vation in the w orkplace f or se veral decades. Ther e ar e se veral r easons f or its popularity . First , the theory concentr ates on w orkplace moti vation r ather than moti ves in other cir cumstances. It applies to specific employment activities, goals, and rewards.

Second, using the f ormulation sho wn in the pr evious section or a similar v ersion, e xpectancy theory e xplains cir cumstances in w hich emplo yees will be moti vated as w ell as situations in w hich the y will not be moti vated. A compan y that has not gi ven pa y r aises or an y other incen - tives f or perf ormance o ver the past thr ee y ears should not be surprised b y the lo w le vels of eff ort e xhibited b y emplo yees. When no link betw een eff ort and perf ormance can be identi - fied, moti vational le vels will decline. Also, managers w ho f ail t o r ecognize the things emplo y- ees value may offer rewards that have no meaning.

Third, the concept that v alue e xists in successfull y completing a task or achie ving a goal sug - gests the r ole that intrinsic v alences pla y in moti vation. An intrinsic valence is the r eward y ou gi ve y ourself f or achie ving a goal, such as a f eeling of pride, accomplishment , or self-efficacy . Intrinsic v alences oft en ar e accompanied b y e xtrinsic valences, or r ewards gi ven b y others (P orter & La wler, 1968). F or e xample, a musician composes a song he or she r eally lik es. One self-r eward comes fr om sim ply finishing the song. Then , if a local r adio station hears the song and pla ys it , a gr eater sense of accomplishment r esults. The v alences ar e intrinsic in natur e. Should the so ng be pick ed up b y a r ecording studio and mak e mone y, an e xtrinsic v alence has been a warded and the intrinsic r eward of kno wing other people lik e the song has been str engthened. Managers should ne ver under estimate the importance of intrinsic v alences in the workplace.

Fourth, e xpectancy theory enjo ys consist ent r esearch support (Dono van, 2001; V an E erde & Thierry , 1996). Althoug h some criticism of the r esearch methods e xists (Mit chell & Daniels, 2003), man y managers belie ve that the theory off ers do wn-to-earth, concr ete methods f or \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources seeking t o impr ove emplo yee eff ort and le vels of moti vation. Appl ying e xpectancy theory r equires mana gers t o do thr ee things: (1) w ork t o mak e sur e emplo yees can complet e assigned task s, (2) link perf ormance t o the r eward s ystem, and (3) mak e sur e emplo yees ar e r ewarded with the things they value.

Summary and Resources Chapter Summary Motivation is what starts, maintains, and stops behaviors. Content theories examine fac- t ors within individuals, notably needs, that lead to behaviors. Operant process theories of moti vation explore external factors that increase and decrease behaviors using Skinner’s beha viorism principles. Cognitive process theories examine the thought processes or mental r easoning processes that lead to behaviors.

Early motivation theories begin with Maslow’s hierarchy of needs, which notes a progres- sion of needs as follows: physiological, safety, social, esteem, self-actualization. Maslow’s w ork applies humanism, the concept that people are essentially good and that they seek to impr ove throughout life. Alderfer’s ERG theory simplifies the hierarchy of needs by breaking it down into existence, relatedness, and growth needs (or physical, social, and psychological needs).

Alderfer builds on the concept of satisfaction–progress by noting frustration–regres- sion, in which the movement to a higher-order need cannot be achieved and results in frus- tration and regression to the previous need as a result.

McClelland’s need theory examines the roles that achievement, power, and affiliation play in a person’s behaviors. Herzberg’s two-factor theory notes that hygiene factors, includ- ing wages, hours, working conditions, supervision, and relationships with peers, increase dissatisf action if inadequate, but cannot motivate, even if adequate. Motivators, including achie vements, recognition, the actual work, responsibility, and the chance to be promoted, should be built into the job. Motivators range from no satisfaction to satisfaction in terms of their impact. Comprehension Exercise 1. The relationship between effort and performance is which part of expectancy theory?

a. equity b. expectancy c.

instrumentality d. valence 2. Feeling great about effectively completing a task is a(n) a. intrinsic valence.

b. extrinsic valence.

c. cognitive valence.

d. accomplishment-based valence. Answers: 1) b 2) a \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Operant process theories include Skinner’s concepts and an applied program called organi- zational behavior modification. OB Mod consists of six steps, including identifying critical, perf ormance-related behaviors; finding ways to count and observe those behaviors; con- ducting a functional analysis associated with those behaviors; designing a program; running the program; and following up. The program primarily relies on positive reinforcement and e xtinction to modify behaviors. Punishment is reserved for extreme circumstances.

Content process theories include equity theory and expectancy theory. Equity theory notes that workers create psychological contracts with employers regarding inputs and outcomes. Emplo yees also make social comparisons with other referents, considering personal input- outcome ratios to those generated by others. When the comparisons yield perceptions of f airness, distributive justice, or equity, behavior is maintained. When the comparisons result in per ceptions of inequity , a str ong moti vation f orce dri ven b y cogniti ve dissonance emer ges, seeking to rectify the injustice. An employee can adjust personal inputs and outcomes, try t o influence the inputs and outcomes obtained by referent others, change to a new referent other , rationalize or re-analyze the comparison, or leave the field. Equity theory explains emplo yee dissatisfaction with the organization’s justice system as well as different levels of eff ort and intentions to quit.

Expectancy theory primary components include expectancy, instrumentality, and valence. Expectancy is the individual’s belief that a task can be completed given a specific level of eff ort. Instrumentality is the individual’s belief that a linkage exists between performance and rewards or outcomes. Valence specifies the value associated with the reward itself (e xtrinsic valence) as well as the feelings of accomplishment associated with successfully completing the task (intrinsic valence). The strongest motivational force results from high le vels of all three variables. Under any other circumstances the level of motivation declines. As a result, the theory explains both worker motivation and the lack of worker motivation. CASE STUDY: Accounting for Success Michelle Jeff erson w as about t o open a tax pr eparation office t o serv e cust omers in the gr eater Detr oit ar ea. Michelle’s goal w as t o serv e indi vidual clients on personal income tax es along with small business o wners in the ar ea. She emplo yed tw o accountants and tw o clerical w ork- ers in her office.

Michelle had spok en with emplo yees fr om the major account ing firm H&R Block. She also vis- it ed wit h an entr epreneur in the same type of oper ation in Lansing, Michig an. She w anted t o be fully prepared for any challenges that might arise.

The int erviews r evealed k ey inf ormation. She learned that the primary pr oblem such firms encount ered w ere labeled “service f ailures,” w here clients belie ved the accounting firm had not deli vered perf ormance as e xpected. Thr ee basic causes of service f ailures w ere (a) time pr essures, (b) human error, and (c) relationship problems.

The natur e of the tax ation cal endar e xplains time pr essures. A t k ey points during the y ear, f orms must be filed and mailed, including W -2 f orms, stat ements of int erest earned, stat e- ments of dividends paid, and other financial information that would be needed to submit an (continued) CASE STUDY: Accounting for Success (continued) individual or company tax report. These documents were to be mailed by the end of January each year. Then, the April 15 tax deadline looms.

The bulk of Michelle’s clients would be found in two groups. First, one set of individuals wants to file taxes as early as possible following receipt of all documents. Many are expecting refunds and want the cash quickly. Second, another set of clients simply waits until the last possible minute to seek out tax service providers. Then, they want taxes prepared rapidly to meet the deadline. Both groups create time pressures for tax preparers, and the cust omers become eas- ily upset if they are not served first and fast.

Human errors result from improperly recorded numbers, such as transposed figures on tax forms. Forms can be mailed to the wrong address or mishandled in some other way. The num- ber of actual miscalculations of taxes had diminished due to tax preparation software; how- ever, it was still possible to miss a deduction or expense and cost the client money.

Relationship problems emerge from the nature of the service. Tensions result from having to send money to the government, and often that resentment transfers to the person who pre- pared the tax form. Also, someone who misses a deadline tends to blame the company, even when the person has created the problem.

Michelle knew that members of her staff would need to be technically proficient in account - ing procedures and knowledgeable about tax law. They would need to be gifted at scheduling, could expect to work long hours during certain parts of the year, must understand that they would run into more than a few unhappy people during peak seasons, and still should be will - ing to maintain pleasant and professional relationships with all clients. Finding the right peo- ple and motivating them properly would be the keys to success in her fledgling organization.

Case Questions 1. Explain the situation in Michelle’s company using concepts from Herzberg’s two-factor theory.

2. Would Luthans’s organizational behavior modification program be appropriate for this company? Explain your answer.

3. What types of equity comparisons would Michelle’s employees likely make? What would happen if they felt underpaid?

4. Using the components present in expectancy theory, explain the motivational process that might take place in Michelle’s company.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Review Questions Define motivation and explain the three categories of motivation theories.

Motivation is what starts, maintains, and stops behaviors. Content theories examine fac- tors within individuals, notably needs, that lead to behaviors. Operant process theories of moti vation explore external factors that increase and decrease behaviors using Skinner’s beha viorism principles. Cognitive process theories examine the thought processes or mental r easoning processes that lead to behaviors. Operant process theories include Skinner’s concepts and an applied program called organi- zational behavior modification. OB Mod consists of six steps, including identifying critical, performance-related behaviors; finding ways to count and observe those behaviors; con - ducting a functional analysis associated with those behaviors; designing a program; running the program; and following up. The program primarily relies on positive reinforcement and extinction to modify behaviors. Punishment is reserved for extreme circumstances.

Content process theories include equity theory and expectancy theory. Equity theory notes that workers create psychological contracts with employers regarding inputs and outcomes. Employees also make social comparisons with other referents, considering personal input- outcome ratios to those generated by others. When the comparisons yield perceptions of fairness, distributive justice, or equity, behavior is maintained. When the comparisons result in perceptions of inequity, a strong motivation force driven by cognitive dissonance emerges, seeking to rectify the injustice. An employee can adjust personal inputs and outcomes, try to influence the inputs and outcomes obtained by referent others, change to a new referent other, rationalize or re-analyze the comparison, or leave the field. Equity theory explains employee dissatisfaction with the organization’s justice system as well as different levels of effort and intentions to quit.

Expectancy theory primary components include expectancy, instrumentality, and valence. Expectancy is the individual’s belief that a task can be completed given a specific level of effort. Instrumentality is the individual’s belief that a linkage exists between performance and rewards or outcomes. Valence specifies the value associated with the reward itself (extrinsic valence) as well as the feelings of accomplishment associated with successfully completing the task (intrinsic valence). The strongest motivational force results from high levels of all three variables. Under any other circumstances the level of motivation declines. As a result, the theory explains both worker motivation and the lack of worker motivation. CASE STUDY: Accounting for Success Michelle Jefferson was about to open a tax preparation office to serve customers in the greater Detroit area. Michelle’s goal was to serve individual clients on personal income taxes along with small business owners in the area. She employed two accountants and two clerical work- ers in her office.

Michelle had spoken with employees from the major accounting firm H&R Block. She also vis- ited with an entrepreneur in the same type of operation in Lansing, Michigan. She wanted to be fully prepared for any challenges that might arise.

The interviews revealed key information. She learned that the primary problem such firms encountered were labeled “service failures,” where clients believed the accounting firm had not delivered performance as expected. Three basic causes of service failures were (a) time pressures, (b) human error, and (c) relationship problems.

The nature of the taxation calendar explains time pressures. At key points during the year, forms must be filed and mailed, including W-2 forms, statements of interest earned, state- ments of dividends paid, and other financial information that would be needed to submit an (continued) CASE STUDY: Accounting for Success (continued) individual or compan y tax r eport. These documents w ere t o be mailed b y the end of January each year. Then, the April 15 tax deadline looms.

The bulk of Michelle’s clients w ould be f ound in tw o gr oups. First , one set of indi viduals w ants t o file ta xes as ear ly as possible f ollowing r eceipt of all documents. Man y ar e e xpecting r efunds and w ant the cash quickl y. Second, another set of clients simpl y w aits until the last possible minut e t o seek out tax service pr oviders. Then, the y w ant ta xes pr epared r apidly t o meet the deadline.

Both gr oups cr eate time pr essures f or tax pr eparers, and the cust omers become eas - ily upset if they are not served first and fast.

Human err ors r esult fr om impr operly r ecorded numbers, such as tr ansposed figur es on tax f orms. F orms can be mailed t o the wr ong addr ess or mishandled in some other w ay. The num - ber of actual miscalculations of tax es had diminished due t o tax pr eparation softw are; ho w- ever, it was still possible to miss a deduction or expense and cost the client money.

Relationship pr oblems emer ge fr om the natur e of the service. T ensions r esult fr om ha ving t o send mone y t o the go vernment, and oft en that r esentment tr ansfers t o the person w ho pr e- pared the tax f orm. Also, some one w ho misses a deadline t ends t o blame the compan y, e ven w hen the person has created the problem.

Michelle knew that members of her staff w ould need t o be t echnically pr oficient in account- ing pr ocedures and kno wledgeable about tax law. The y w ould need t o be gift ed at scheduling, could e xpect t o w ork long hours during certain parts of the y ear, must understand that the y w ould run int o mor e than a f ew unhapp y people during peak seasons, and still should be will- ing t o maintain pleasant and pr ofessional r elationships with all clients. Finding the rig ht peo - ple and motivating them properly would be the keys to success in her fledgling organization.

Case Questions 1. Explain the situation in Michelle’s company using concepts from Herzberg’s two-factor theory .

2. Would Luthans’s organizational behavior modification program be appropriate for this compan y? Explain your answer.

3. What types of equity comparisons would Michelle’s employees likely make? What w ould happen if they felt underpaid?

4. Using the components present in expectancy theory, explain the motivational process that might take place in Michelle’s company.

Maslow’s hierarchy of needs, Alderfer’s ERG theory, McClelland’s need theory, and Herz- berg’s two-factor theory.

What needs are noted in Maslow’s hierarchy and in Alderfer’s ERG model Maslow notes physiological, safety, social, esteem, and self-actualization needs. Alderfer pr oposes existence, relatedness, and growth needs.

What three needs receive the most attention in McClelland’s need theory?

The needs for achievement, power, and affiliation.

What hygiene factors and motivators are identified in Herzberg’s two-factor theory?

Hygiene factors include wages, hours, working conditions, relationships with supervisors, and relationships with peers. Motivators are achievements, recognition, the actual work or job, responsibility, and the chance for advancement and growth.

What are the steps of an organizational behavior modification program?

OB Mod consists of five steps, including identifying critical, performance-related behaviors; finding ways to count and observe those behaviors; conducting a functional analysis associ- ated with those behaviors; designing a program; and following up. The program primarily r elies on positive reinforcement and extinction to modify behaviors. Punishment is reserved f or extreme circumstances.

Describe ABC and SOBC in an organizational behavior modification program.

ABC is antecedent, behavior, and consequence. SOBC is stimulus, organism, behavior, and consequence.

Both describe paths to repeated behaviors, both desired ones and those not w anted by managers.

Explain the nature of a comparison of a person with a referent other in Adams’s equity theory.

These comparisons show “give-get” relationships, or, “what I give and get versus what my r eferent other gives and gets,” or Personal outcomesv ersusReferent other outcomes Personal inputs Referent other inputs When an individual perceives inequity, what types of reactions can take place?

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Reactions to perceptions of inequity include ActivityExample Change personal outcomes Ask for a pay raise.

Change personal inputs Try harder; reduce effort.

Influence referent other outcome Encourage referent other to ask for a raise.

Influence referent other inputs Encourage referent other to try harder; reduce eff ort.

Change referent other Look at outcomes and inputs of someone different.

Rationalize Add elements to the formula, such as time horizon.

Leave the field Quit the job.

What are the three main elements of Vroom’s expectancy theory?

Analytical Exercises 1. Compare the needs listed in Maslow’s hierarchy, Alderfer’s ERG theory, and McClel- land’s need theory and those implied by Herzberg’s two-factor theory. What com- mon elements do they contain? What are the primary differences?

2. In Herzberg’s two-factor theory, the terms “motivation” and “satisfaction” are used int erchangeably, which may not always be the case. Provide specific examples of the f ollowing circumstances in each of three workplace settings: (1) a manufacturing oper ation, (2) an insurance company, and (3) a fast-food restaurant chain. • Emplo yees are satisfied and motivated.

• Employees are satisfied but not motivated.

• Employees are dissatisfied and motivated.

• Employees are dissatisfied and unmotivated.

3. In this chapter, Luthans’s OB Mod model demonstrated a method that could be used t o improve sales and reduce inventory shrinkage in an upscale retail store, first using cash prizes and later by holding a contest. If six months after the contest was over, emplo yees were still maintaining the three basic performance-related behaviors (sta ying on station, greeting customers, arranging merchandise) at very high levels, without the presence of extrinsic rewards, what would explain this outcome?

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources 4. Using the variables outlined in Adams’s equity theory, describe how you believe feel- ings of inequity would evolve in the following circumstances: • non-union workers in a manufacturing company comparing themselves to union workers in another manufacturing plant in the same town • a Hispanic worker passed over for promotion three times in favor of a Caucasian worker with less experience • the glass ceiling in any company 5. In Vroom’s expectancy theory model, both intrinsic and extrinsic valences are r elated to higher levels of motivation. Explain the relationships of these motives to the following: • fulfilling a need • Herzberg’s list of hygiene factors and motivators • positive reinforcement • organizational justice Key Terms cognitive process theories Motivation theories that examine the thought pro- cesses or mental reasoning processes that lead to behaviors.

content theories Motivation theories that e xamine factors within individuals, notably needs, that lead to behaviors.

distributive justice Concept that people should receive in proportion to what they gi ve in society.

equity sensitivity The extent to which someone reacts to perceptions of inequity.

expectancy The belief that a given level of eff ort will result in the successful perfor- mance of a task.

extrinsic valence A reward given by others.

h ygiene factors A series of factors associ- ated with the work context that are related t o job dissatisfaction.

instrumentality The belief that successful perf ormance of a task will result in a spe- cific outcome or reward. intrinsic valence The reward a person gi ves himself or herself for achieving a goal, such as a feeling of pride, accomplishment, or self-efficacy.

motivation What starts, maintains, and st ops behaviors.

motivators A set of factors that is derived fr om personal effort and performance and aff ects job satisfaction.

need for achievement The degree to w hich an individual exhibits the drive to e xcel and generate accomplishments.

need for affiliation The need for close int erpersonal relationships, including join- ing groups and seeking love or friendship.

need for power The drive to make others beha ve in ways they would not otherwise choose.

oper ant process theories Motivation theories that explore external factors that incr ease and decrease behaviors.

procedural justice The fairness of pro- cesses, such as a performance appraisal or pa y raise system.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources process theories Motivation theories that e xamine the progression of events that lead t o motivated behavior.

referent other The person an employee chooses for purposes of making social com- parisons on the job. valence The value of a reward, based on the value of the reward to the person and the value associated with achieving a goal.