{"id":94,"date":"2020-11-02T13:35:47","date_gmt":"2020-11-02T18:35:47","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/chapter\/motivating\/"},"modified":"2024-12-04T14:50:21","modified_gmt":"2024-12-04T19:50:21","slug":"motivating","status":"publish","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/chapter\/motivating\/","title":{"raw":"Chapter 12 - Motivating Employees","rendered":"Chapter 12 &#8211; Motivating Employees"},"content":{"raw":"<div class=\"textbox textbox--learning-objectives\"><header class=\"textbox__header\">\r\n<h1 class=\"textbox__title\">Learning Objectives<\/h1>\r\n<\/header>\r\n<div class=\"textbox__content\">\r\n\r\nBy the end of the chapter, you should be able to:\r\n<ol>\r\n \t<li>define motivation, and understand why it is important in the workplace;<\/li>\r\n \t<li>explain the difference between intrinsic and extrinsic motivation;<\/li>\r\n \t<li>explain the basics of major theories of motivation:\r\n<ul>\r\n \t<li>The Hierarchy of Needs theory;<\/li>\r\n \t<li>The Two-Factor theory;<\/li>\r\n \t<li>Expectancy theory; and<\/li>\r\n \t<li>Equity theory.<\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li>Identify strategies for enhancing motivation; and<\/li>\r\n \t<li>Explain [pb_glossary id=\"456\"]key terms[\/pb_glossary] in the chapter.<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n&nbsp;\r\n\r\n<img class=\"alignleft wp-image-28 size-thumbnail\" src=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/1E-ShowWhatYouKnow-1-150x150.png\" alt=\"\" width=\"150\" height=\"150\" \/>\r\n<h2>\u00a0Show What You Know<\/h2>\r\n<p style=\"text-align: center\">[h5p id=\"27\"]<\/p>\r\n\r\n<div class=\"page-break-before\"><\/div>\r\n<h1>Motivation<\/h1>\r\n<p class=\"c3 c4\"><span class=\"c7\">Motivation<\/span><span class=\"c6\"> refers to an internally generated drive to achieve a goal or follow a particular course of action. Highly motivated employees focus their efforts on achieving specific goals. It\u2019s the manager\u2019s job, therefore, to motivate employees \u2014 to get them to try to do the best job they can. Motivated employees call in sick less frequently, are more productive, and are less likely to convey bad attitudes to customers and coworkers. They also tend to stay in their jobs longer, reducing turnover and the cost of hiring and training employees. But what motivates employees to do well? How does a manager encourage employees to show up for work each day and do a good job? Paying them helps, but many other factors influence a person\u2019s desire (or lack of it) to excel in the workplace. What are these factors, are they the same for everybody, and do they change over time? To address these questions, we\u2019ll examine four of the most influential theories of motivation: hierarchy-of-needs theory, two-factor theory, expectancy theory, and equity theory.<\/span><\/p>\r\n\r\n<h1 class=\"c9\"><span class=\"c1 c5 c7 c15\">Extrinsic and Intrinsic Motivation<\/span><\/h1>\r\n[caption id=\"attachment_89\" align=\"alignright\" width=\"228\"]<a href=\"https:\/\/ecampusontario.pressbooks.pub\/app\/uploads\/sites\/168\/2018\/04\/image5-2.png\"><img class=\"wp-image-89 size-medium\" src=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image5-2-228x300.png\" alt=\"Geometric representation of a person with Intrinsic Motivation defined inside of them as: comes from within: the enjoyment of a task, the satisfaction of a job well done and the desire to achieve. Rectangle above the person with Extrinsic Motivation defined inside of it as: comes from external factors such as a bonus, reward or avoiding punishment or a bad outcome.\" width=\"228\" height=\"300\" \/><\/a> Chart 12.1 Extrinsic and Intrinsic Motivation.[\/caption]\r\n<p class=\"c3 c4\">Before we begin our discussion of the various theories of motivation, it is important to establish the distinction between intrinsic and extrinsic motivation. Simply put, <span class=\"c7\">intrinsic<\/span>\u00a0<span class=\"c7\">motivation<\/span>\u00a0comes from within: the enjoyment of a task, the satisfaction of a job well done, and the desire to achieve are all sources of intrinsic motivation. On the other hand, <span class=\"c7\">extrinsic<\/span>\u00a0<span class=\"c7\">motivation<\/span><span class=\"c6\">\u00a0comes about because of external factors such as a bonus or another form of reward. Avoiding punishment or a bad outcome can also be a source of extrinsic motivation; fear, it is said, can be a great motivator.<\/span><\/p>\r\n\r\n<h1 class=\"c54\"><span class=\"c12 c7\">Hierarchy of Needs Theory<\/span><\/h1>\r\nPsychologist Abraham Maslow\u2019s <span class=\"c7 c33\"><a class=\"c48\" href=\"https:\/\/www.google.com\/url?q=https:\/\/www.youtube.com\/watch?v%3DUgp3hm2JIqM&amp;sa=D&amp;ust=1524676422507000\">hierarchy of needs theory<\/a><\/span><span class=\"c6\">\u00a0proposed that we are motivated by the five initially unmet needs, arranged in the hierarchical order shown below, which also lists specific examples of each type of need in both the personal and work<\/span> spheres of life. Look, for instance, at the list of personal needs in the middle column. At the bottom are <span class=\"c7\">physiological needs<\/span> (life-sustaining needs, such as food and shelter). Working up the hierarchy we experience <span class=\"c7\">safety needs<\/span>\u00a0(financial stability, freedom from physical harm), <span class=\"c7\">social needs<\/span>\u00a0(the need to belong and have friends), <span class=\"c7\">esteem needs <\/span>(the need for self-respect and status), and <span class=\"c7\">self-actualization needs<\/span><span class=\"c6\">\u00a0(the need to reach one\u2019s full potential or achieve some creative success). There are two key things to remember about Maslow\u2019s model:<\/span>\r\n<ol class=\"c14 lst-kix_list_3-0 start\" start=\"1\">\r\n \t<li class=\"c22\"><span class=\"c6\">We must satisfy lower-level needs before we seek to satisfy higher-level needs.<\/span><\/li>\r\n \t<li class=\"c41\"><span class=\"c6\">Once we\u2019ve satisfied a need, it no longer motivates us; the next higher need takes its place.<\/span><\/li>\r\n<\/ol>\r\n[caption id=\"attachment_90\" align=\"aligncenter\" width=\"1024\"]<img class=\"wp-image-90 size-large\" src=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image3-2-1024x617.png\" alt=\"Chart outlining Maslow\u2019s Hierarchy of Needs and how each level relates to personal and professional fulfillment. Lowest: Physiological - Food and shelter - salary; Safety: Financial stability - Seniority\/job security; Social: Family and friendships - Team membership and social activities; Esteem: Status and respect - Authority, titles, recognition; Highest: Self-Actualization: Creative success and achievement; Challenging work, leadership, professional achievement.\" width=\"1024\" height=\"617\" \/> Chart 12.2 Hierarchy of Needs Theory[\/caption]\r\n<p class=\"c51\">Let\u2019s say, for example, that for a variety of reasons that aren\u2019t your fault, you\u2019re broke, hungry, and homeless. Because you\u2019ll probably take almost any job that will pay for food and housing (<span class=\"c5\">physiological <\/span>needs), you go to work repossessing cars. Fortunately, your student loan finally comes through, and with enough money to feed yourself, you can go back to school and look for a job that\u2019s not so risky (a <span class=\"c5\">safety <\/span>need). You find a job as a night janitor in the library, and though you feel secure, you start to feel cut off from your friends, who are active during daylight hours. You want to work among people, not books (a <span class=\"c5\">social <\/span><span class=\"c6\">need). So now you join several of your friends selling pizza in the student centre. This job improves your social life, but even though you\u2019re very good at making pizzas, it\u2019s not terribly satisfying. You\u2019d <\/span>like something that your friends will respect enough to stop teasing you about the pizza job (an <span class=\"c5\">esteem <\/span>need). So you study hard and land a job as an intern in the governor\u2019s office. On graduation, you move up through a series of government appointments and eventually run for state senator. As you\u2019re sworn into office, you realize that you\u2019ve reached your full potential (a <span class=\"c5\">self-actualization <\/span><span class=\"c6\">need) and you comment to yourself, \u201cIt doesn\u2019t get any better than this.\u201d<\/span><\/p>\r\n\r\n<h1 class=\"c9\">Needs Theory and the Workplace<\/h1>\r\n<p class=\"c3 c4\"><span class=\"c6\">What implications does Maslow\u2019s theory have for business managers? There are two key points: (1) Not all employees are driven by the same needs, and (2) the needs that motivate individuals can change over time. Managers should consider which needs different employees are trying to satisfy and should structure rewards and other forms of recognition accordingly. For example, when you got your first job repossessing cars, you were motivated by the need for money to buy food. If you\u2019d been given a choice between a raise or a plaque recognizing your accomplishments, you\u2019d undoubtedly have opted for the money. As a city councillor, by contrast, you may prefer public recognition of work well done (say, election to higher office) to a pay raise.<\/span><\/p>\r\n\r\n<h1 class=\"c53\">Two-Factor Theory<\/h1>\r\n<p class=\"c3 c4\">Another psychologist, Frederick Herzberg, set out to determine which work factors (such as wages, job security, or advancement) made people feel good about their jobs and which factors made them feel bad about their jobs. He surveyed workers, analyzed the results, and concluded that to understand employee <span class=\"c5\">satisfaction <\/span>(or <span class=\"c5\">dissatisfaction<\/span><span class=\"c6\">), he had to divide work factors into two categories:<\/span><\/p>\r\n\r\n<ul class=\"c14 lst-kix_list_4-0 start\">\r\n \t<li class=\"c43\"><span class=\"c5 c7\">Motivation factors<\/span><span class=\"c6\">. Those factors that are strong contributors to job satisfaction<\/span><\/li>\r\n \t<li class=\"c25 c36\"><span class=\"c0\">Hygiene factors<\/span><span class=\"c6\">. Those factors that are <\/span><span class=\"c24 c5\">not <\/span><span class=\"c6\">strong contributors to satisfaction but that must be present to meet a worker\u2019s expectations and prevent job dissatisfaction<\/span><\/li>\r\n<\/ul>\r\n<p class=\"c21\">The graphic below illustrates Herzberg\u2019s two-factor theory. Note that motivation factors (such as promotion opportunities) relate to <span class=\"c5\">the nature of the work itself and the way the employee performs it<\/span>. Hygiene factors (such as physical working conditions) relate to <span class=\"c5\">the environment in which it\u2019s performed<\/span><span class=\"c6\">. <\/span><\/p>\r\n\r\n\r\n[caption id=\"attachment_106\" align=\"aligncenter\" width=\"1120\"]<img class=\"wp-image-106 size-full\" src=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image7.png\" alt=\"Complex graphic with two text boxes, one which lists Hygiene factors and one which lists Motivation factors. Hygiene factors include: pay, job security, company policies, relations with others, quality of supervision, physical working conditions. Motivation factors include: recognition, achievement, responsibility, promotion opportunities, opportunities for personal growth. Job satisfaction arrows from High to Low indicate how poor hygiene factors will increase job dissatisfaction, while good motivators will increase satisfaction.\" width=\"1120\" height=\"464\" \/> Chart 12.3 Herzberg\u2019s Two-Factor theory: Poor hygiene factors will increase job dissatisfaction, while good motivators will increase satisfaction.[\/caption]\r\n<h1 class=\"c9\">Two-Factor Theory and the Workplace<\/h1>\r\n<p class=\"c3 c4\"><span class=\"c6\">We\u2019ll ask the same question about Herzberg\u2019s model as we did about Maslow\u2019s: What does it mean for managers? Suppose you\u2019re a senior manager in an accounting firm, where you supervise a team of accountants, each of whom has been with the firm for five years. How would you use Herzberg\u2019s model to motivate the employees who report to you? Let\u2019s start with hygiene factors. Are salaries reasonable? What about working conditions? Does each accountant have his or her own workspace, or are they crammed into tiny workrooms? Are they being properly supervised or are they left on their own to sink or swim? If hygiene factors like these don\u2019t meet employees\u2019 expectations, they may be dissatisfied with their jobs.<\/span><\/p>\r\n<p class=\"c3 c4\">Fixing problems related to hygiene factors may alleviate job <span class=\"c5\">dissatisfaction<\/span>, but it won\u2019t necessarily improve anyone\u2019s job <span class=\"c5\">satisfaction<\/span><span class=\"c6\">. To increase satisfaction (and motivate someone to perform better), you must address motivation factors. Is the work itself challenging and stimulating? Do employees receive recognition for jobs well done? Will the work that an accountant has been assigned help him or her to advance in the firm? According<\/span><span class=\"c6\">\u00a0to Herzberg, motivation requires a twofold approach: eliminating \u201cdissatisfiers\u201d and enhancing satisfiers.<\/span><\/p>\r\n\r\n<h1 class=\"c32\">Expectancy Theory<\/h1>\r\n<p class=\"c3 c4\">If you were a manager, wouldn\u2019t you like to know how your employees decide whether to work hard or goof off? Wouldn\u2019t it be nice to know whether a planned rewards program will have the desired effect \u2014 namely, motivating them to perform better in their jobs? These are the issues considered by psychologist Victor Vroom in his <span class=\"c7\">expectancy theory<\/span><span class=\"c6\">, which proposes that employees will work hard to earn rewards that they value and that they consider \u201cattainable\u201d.<\/span><\/p>\r\n<p class=\"c4 c23\"><span class=\"c6\">As you can see from the figure below, Vroom argues that an employee will be motivated to exert a high level of effort to obtain a reward under three conditions \u2014 the employee:<\/span><\/p>\r\n\r\n<ol class=\"c14 lst-kix_list_5-0 start\" start=\"1\">\r\n \t<li class=\"c26 c25 c57\"><span class=\"c6\">believes that his or her efforts will result in acceptable performance;<\/span><\/li>\r\n \t<li class=\"c25 c42\"><span class=\"c6\">believes that acceptable performance will lead to the desired reward; and<\/span><\/li>\r\n \t<li class=\"c25 c49\"><span class=\"c6\">values the reward.<\/span><\/li>\r\n<\/ol>\r\n[caption id=\"attachment_107\" align=\"aligncenter\" width=\"516\"]<img class=\"wp-image-107 size-full\" src=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/Expectancy-Theory.png\" alt=\"Complex graphic with three text boxes, each with a distinct subject regarding employee expectations in three categories: Effort, Performance and Reward. Employees believe that effort will produce an acceptable performance. Employees believe that acceptable performance will earn them the desired reward. Employees value the offered reward.\" width=\"516\" height=\"246\" \/> Chart 12.4 Expectancy Theory[\/caption]\r\n<h1 class=\"c9\">Expectancy Theory and the Workplace<\/h1>\r\n<p class=\"c46\">To apply expectancy theory to a real-world situation, let\u2019s analyze an automobile-insurance company with one hundred agents who work from a call centre. Assume that the firm pays a base salary of $2,000 a month, plus a $200 commission on each policy sold above ten policies a month. In terms of expectancy theory, under what conditions would an agent be motivated to sell more than ten policies a month?<\/p>\r\n\r\n<ol class=\"c14 lst-kix_list_6-0 start\" start=\"1\">\r\n \t<li class=\"c23 c31\"><span class=\"c6\">The agent would have to believe that his or her efforts would result in policy sales (that, in other words, there\u2019s a positive link between effort and performance).<\/span><\/li>\r\n \t<li class=\"c16\"><span class=\"c6\">The agent would have to be confident that if he or she sold more than ten policies in a given month, there would indeed be a bonus (a positive link between performance and reward).<\/span><\/li>\r\n \t<li class=\"c16\"><span class=\"c6\">The $200 bonus per policy would have <\/span>to<span class=\"c6\">\u00a0be of value to the agent.<\/span><\/li>\r\n<\/ol>\r\n<p class=\"c3\">Now let\u2019s alter the scenario slightly. Say that the company raises prices, thus making it hard<span class=\"c6\">er to sell the policies. How will agents\u2019 motivation be affected? According to expectancy theory, motivation will suffer. Why? Because agents may be less confident that their efforts will lead to satisfactory performance. What if the company introduces a policy whereby agents get bonuses only if buyers don\u2019t cancel policies within ninety days? Now agents may be less confident that they\u2019ll get bonuses even if they do sell more than ten policies. Motivation will decrease because the link between performance and reward has been weakened. Finally, what will happen if bonuses are cut from $200 to $25? Obviously, the reward would be of less value to agents, and, again, motivation will suffer. The message of expectancy theory, then, is fairly clear: managers should offer rewards that employees value, set performance levels that they can reach, and ensure a strong link between performance and reward.<\/span><\/p>\r\n\r\n<h1 class=\"c32\">Equity Theory<\/h1>\r\n<p class=\"c3 c4\"><span class=\"c6\">What if you spent thirty hours working on a class report, did everything you were supposed to do, and handed in an excellent assignment (in your opinion). Your roommate, on the other hand, spent about five hours and put everything together at the last minute. You know, moreover, that he ignored half the requirements and never even ran his assignment through a spell-checker. A week later, your teacher returns the reports. You get a C and your roommate gets a B+. In all likelihood, you\u2019ll feel that you\u2019ve been treated unfairly relative to your roommate.<\/span><\/p>\r\n<p class=\"c3 c25 c4\">Your reaction makes sense according to the <span class=\"c33 c7\"><a class=\"c48\" href=\"https:\/\/www.google.com\/url?q=https:\/\/www.businessballs.com\/improve-workplace-performance\/adams-equity-theory-on-job-motivation-4045\/&amp;sa=D&amp;ust=1524676422515000\">equity theory of motivation<\/a><\/span>, which focuses on our perceptions of how fairly we\u2019re treated <span class=\"c5\">relative to others<\/span>. Applied to the work environment, this theory proposes that employees analyze their contributions or <span class=\"c7\">job inputs<\/span>\u00a0(hours worked, education, experience, work performance) and their rewards or <span class=\"c7\">job outcomes<\/span><span class=\"c6\">\u00a0(salary, bonus, promotion, recognition). Then they create a contributions\/rewards ratio and compare it to those of other people. The basis of comparison can be any one of the following:<\/span><\/p>\r\n\r\n<ul class=\"c14 lst-kix_list_7-0 start\">\r\n \t<li class=\"c23 c31\"><span class=\"c6\">someone in a similar <\/span><span class=\"c24 c5\">position;<\/span><\/li>\r\n \t<li class=\"c23 c31\"><span class=\"c6\">someone holding a different position in the same <\/span><span class=\"c24 c5\">organization;<\/span><\/li>\r\n \t<li class=\"c23 c31\"><span class=\"c6\">someone with a similar <\/span><span class=\"c24 c5\">occupation;<\/span><\/li>\r\n \t<li class=\"c23 c31\"><span class=\"c6\">someone who shares certain <\/span><span class=\"c5 c24\">characteristics <\/span><span class=\"c6\">(such as age, education, or level of experience); or<\/span><\/li>\r\n \t<li class=\"c3 c31\"><span class=\"c6\">oneself at another point in time.<\/span><\/li>\r\n<\/ul>\r\n[caption id=\"attachment_108\" align=\"aligncenter\" width=\"402\"]<img class=\"wp-image-108 size-full\" src=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/Equity-Theory.png\" alt=\"Scale graphic with two equally balanced sides. One side of the scale contains Job Inputs such as hours worked, education and work performance. The other side of the scale contains Job Outcomes such as promotions, bonus recognition and salary. The scale represents the balance needed between inputs and outcomes.\" width=\"402\" height=\"441\" \/> Chart 5 Equity Theory[\/caption]\r\n<p class=\"c3\" style=\"text-align: center\"><span class=\"c5\">\u00a0<\/span><\/p>\r\n<p class=\"c3 c4\">When individuals perceive that the ratio of their contributions to rewards is comparable to that of others, they perceive that they\u2019re being treated fairly or <span class=\"c7\">equitably<\/span>; when they perceive that the ratio is out of balance, they perceive <span class=\"c7\">inequity<\/span><span class=\"c6\">. Occasionally, people will perceive that they\u2019re being treated better than others. More often, however, they conclude that others are being treated better (and that they themselves are being treated worse). This is what you concluded when you saw your grade in the previous example. You\u2019ve calculated your ratio of contributions (hours worked, research and writing skills) to rewards (project grade), compared it to your roommate\u2019s ratio, and concluded that the two ratios are out of balance.<\/span><\/p>\r\n<p class=\"c26\"><span class=\"c6\">What will an employee do if he or she perceives an inequity? The individual might try to bring the ratio into balance, either by decreasing inputs (working fewer hours, not taking on additional tasks) or by increasing outputs (asking for a raise). If this strategy fails, an employee might complain to a supervisor, transfer to another job, leave the organization, or rationalize the situation (e.g., decide that the situation isn\u2019t so bad after all). Equity theory advises managers to focus on treating workers fairly, especially in determining compensation, which is, naturally, a common basis of comparison.<\/span><\/p>\r\n\r\n<h1>Strategies for Enhancing Motivation<\/h1>\r\n<div>\r\n\r\nPeople are different and what inspires one person may not motivate another. For some it may be money, while others want rewards or recognition. Others find all the motivation they need within themselves and just get on and perform, therefore no one-size-fits-all method for motivating employees, boosting performance levels, and creating a happy, thriving work environment.\u00a0 \u00a0Companies have therefore used many different programs to increase motivation levels of their employees.\r\n\r\nBelow are some examples of motivation strategies utilized to help keep employees happy and focused on doing their best.\r\n\r\n<\/div>\r\n<div><\/div>\r\n<h2>Reinforcement and Behavior Modification<\/h2>\r\n<div><\/div>\r\n<div>Reinforcement is controlling and modifying employee behavior through the use of systematic rewards and punishments for specific behavior. Managers define specific behaviors that they want employee to exhibit (working hard, being customer service focus, stressing the importance of quality, etc.) and behaviors they want to eliminate (wasting time and resources, being disrespectful to customers,\u00a0 ignoring quality, etc.). Managers therefore use positive reinforcements (apply positive consequences when employees exhibits desired behaviors) or negative reinforcements (apply when when employee exhibit undesirable behaviors) to shape behavior.<\/div>\r\n<div><\/div>\r\n<h2>Empowerment<\/h2>\r\n<div><\/div>\r\n<div>Empowerment is a method of increasing job satisfaction by giving employees authority and responsibility in the management of their jobs and the company. This encourages employees to be self-motivated and to make suggestions for improvements. Some organizations have a flat organization structure without the usual hierarchy and empower their workers by giving them a lot of autonomy.<\/div>\r\n<div><\/div>\r\n<h2>Setting SMART Goals<\/h2>\r\n<div><\/div>\r\n<div><span style=\"text-align: initial;font-size: 1em\">SMART Goals stands or Specific, Measurable, Achievable, Realistic or Results-Oriented and Timely. Employees perform best when they have specific goals to achieve. By breaking larger objectives down into smaller ones, employees are motivated and focused; with smaller goals, team members get to clearly see that they have made progress and that their hard work has tangible meaning. <\/span><span style=\"text-align: initial;font-size: 1em\">One important method of setting performance goals is Management by Objectives (MBO). This involves managers and their subordinates collaboratively setting goals and evaluating progress.<\/span><\/div>\r\n<div><\/div>\r\n<h2>Promoting Teamwork and Collaboration<\/h2>\r\n<div>Teamwork is one of the greatest motivators. There are a variety of teams such as problem-solving teams, self-managed teams, etc. Creating an environment for teams to work collaboratively and communicate can motivate employees.<\/div>\r\n<h2>Job Enrichment and Redesign<\/h2>\r\nJob enrichment is a method of increasing employees' job satisfaction by extending or adding motivating factors such as responsibility or growth. It may include combining tasks, forming quality circles (where employees are grouped into smaller teams that define, analyze, and solve quality and other problems within an area) or other work groups, or allowing employees to interact with customers or clients. Job enrichment is accomplished by job redesign to achieve a more satisfactory person-job fit, which motivates individuals who aspire to growth or achievement.\r\n<h2>Modified Work Schedules<\/h2>\r\nModified work schedules include flextime, compressed work week, telecommuting, and workshare programs.\r\n\r\n<em>Flextime Work Schedule<\/em>\r\n\r\nA flextime work schedule allows people to choose their working hours. It is an alternative work schedule for employees who normally work the eight-hour, five-day workweek, usually from 8 a.m. to 5 p.m. Flextime scheduling permits employees to select a work schedule that may assist with individual needs, especially commuting and family needs. Flextime work schedules are available at many organizations in Canada and around the world; this is a method of increasing employees' job satisfaction by allowing employees some choice in the hours they work.\r\n\r\n<em>Compressed Work Week<\/em>\r\n\r\nA compressed\u00a0<span role=\"tooltip\"><span class=\"povykd\" role=\"button\" data-enable-toggle-animation=\"true\" data-extra-container-classes=\"ZLo7Eb\" data-hover-hide-delay=\"1000\" data-hover-open-delay=\"500\" data-send-open-event=\"true\" data-theme=\"0\" data-width=\"250\" data-ved=\"2ahUKEwirvJ6I9OX7AhUZMDQIHYfJCcgQmpgGegQIEBAD\"><span class=\"JPfdse\" data-bubble-link=\"\" data-segment-text=\"workweek\">work week<\/span><\/span><\/span>\u00a0is defined as\u00a0an alternative work schedule that compresses the standard weekly hours into fewer than five standard working days over a given period. The most popular compressed workweek is four days, 10 hours per day, which is used in many companies.\r\n\r\n<em>Telecommuting<\/em>\r\n\r\nTelecommuting is the ability for an employee to complete work assignments from outside the traditional workplace by using telecommunications tools such as email, phone, chat, and video apps.\r\n\r\n<em>Workshare Programs<\/em>\r\n\r\nWorkshare or job share programs are methods of increasing employee job satisfaction by allowing two people to share one job.\r\n<h1>Comprehensive Check<\/h1>\r\n<ol>\r\n \t<li>There are many different theories of motivation. If you believe that Maslow's needs hierarchy best explains motivation in the workplace, how will you motivate your employees to work harder?<\/li>\r\n \t<li>Assuming that you have a new business venture employing 5 people, how would you use the Herzberg's two-factor theory to support your new business venture?<\/li>\r\n \t<li>How is the job enrichment\/job redesign approach to motivation different from the modified work schedules approach to motivation? Are there similarities between the two approaches?<\/li>\r\n<\/ol>\r\n&nbsp;\r\n<div class=\"textbox textbox--key-takeaways\"><header class=\"textbox__header\">\r\n<h1 class=\"textbox__title\">Key Takeaways<\/h1>\r\n<\/header>\r\n<div class=\"textbox__content\">\r\n\r\nImportant terms and concepts:\r\n<ol>\r\n \t<li>Motivation describes a generated drive that propels people to achieve goals or pursue particular courses of action.<\/li>\r\n \t<li>There are four influential theories of motivation: hierarchy-of-needs theory, two-factor theory, expectancy theory, and equity theory:\r\n<ul>\r\n \t<li>Hierarchy-of-needs theory proposes that we\u2019re motivated by five unmet needs\u2014 physiological, safety, social, esteem, and self-actualization \u2014 and must satisfy lower-level needs before we seek to satisfy higher-level needs.<\/li>\r\n \t<li>Two-factor theory divides work factors into motivation factors (those that are strong contributors to job satisfaction) and hygiene factors (those that, though not big contributors to satisfaction, must be present to prevent job dissatisfaction).<\/li>\r\n \t<li>Expectancy theory proposes that employees work harder to obtain a reward when they value the reward, believe that their efforts will result in acceptable performance, and believe that acceptable performance will lead to a desired outcome or reward.<\/li>\r\n \t<li>Equity theory focuses on our perceptions of how fairly we\u2019re treated relative to others. This theory proposes that employees create rewards ratios that they compare to those of others and will be less motivated when they perceive an imbalance in treatment.<\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li>Employees use many different strategies to improve job satisfaction and employee motivation.<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>","rendered":"<div class=\"textbox textbox--learning-objectives\">\n<header class=\"textbox__header\">\n<h1 class=\"textbox__title\">Learning Objectives<\/h1>\n<\/header>\n<div class=\"textbox__content\">\n<p>By the end of the chapter, you should be able to:<\/p>\n<ol>\n<li>define motivation, and understand why it is important in the workplace;<\/li>\n<li>explain the difference between intrinsic and extrinsic motivation;<\/li>\n<li>explain the basics of major theories of motivation:\n<ul>\n<li>The Hierarchy of Needs theory;<\/li>\n<li>The Two-Factor theory;<\/li>\n<li>Expectancy theory; and<\/li>\n<li>Equity theory.<\/li>\n<\/ul>\n<\/li>\n<li>Identify strategies for enhancing motivation; and<\/li>\n<li>Explain <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_94_456\">key terms<\/a> in the chapter.<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-28 size-thumbnail\" src=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/1E-ShowWhatYouKnow-1-150x150.png\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/1E-ShowWhatYouKnow-1-150x150.png 150w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/1E-ShowWhatYouKnow-1-65x65.png 65w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/1E-ShowWhatYouKnow-1-225x225.png 225w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/1E-ShowWhatYouKnow-1.png 294w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/p>\n<h2>\u00a0Show What You Know<\/h2>\n<p style=\"text-align: center\">\n<div id=\"h5p-27\">\n<div class=\"h5p-iframe-wrapper\"><iframe id=\"h5p-iframe-27\" class=\"h5p-iframe\" data-content-id=\"27\" style=\"height:1px\" src=\"about:blank\" frameBorder=\"0\" scrolling=\"no\" title=\"Show (Motivating)\"><\/iframe><\/div>\n<\/div>\n<div class=\"page-break-before\"><\/div>\n<h1>Motivation<\/h1>\n<p class=\"c3 c4\"><span class=\"c7\">Motivation<\/span><span class=\"c6\"> refers to an internally generated drive to achieve a goal or follow a particular course of action. Highly motivated employees focus their efforts on achieving specific goals. It\u2019s the manager\u2019s job, therefore, to motivate employees \u2014 to get them to try to do the best job they can. Motivated employees call in sick less frequently, are more productive, and are less likely to convey bad attitudes to customers and coworkers. They also tend to stay in their jobs longer, reducing turnover and the cost of hiring and training employees. But what motivates employees to do well? How does a manager encourage employees to show up for work each day and do a good job? Paying them helps, but many other factors influence a person\u2019s desire (or lack of it) to excel in the workplace. What are these factors, are they the same for everybody, and do they change over time? To address these questions, we\u2019ll examine four of the most influential theories of motivation: hierarchy-of-needs theory, two-factor theory, expectancy theory, and equity theory.<\/span><\/p>\n<h1 class=\"c9\"><span class=\"c1 c5 c7 c15\">Extrinsic and Intrinsic Motivation<\/span><\/h1>\n<figure id=\"attachment_89\" aria-describedby=\"caption-attachment-89\" style=\"width: 228px\" class=\"wp-caption alignright\"><a href=\"https:\/\/ecampusontario.pressbooks.pub\/app\/uploads\/sites\/168\/2018\/04\/image5-2.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-89 size-medium\" src=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image5-2-228x300.png\" alt=\"Geometric representation of a person with Intrinsic Motivation defined inside of them as: comes from within: the enjoyment of a task, the satisfaction of a job well done and the desire to achieve. Rectangle above the person with Extrinsic Motivation defined inside of it as: comes from external factors such as a bonus, reward or avoiding punishment or a bad outcome.\" width=\"228\" height=\"300\" srcset=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image5-2-228x300.png 228w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image5-2-65x86.png 65w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image5-2-225x297.png 225w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image5-2-350x461.png 350w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image5-2.png 518w\" sizes=\"auto, (max-width: 228px) 100vw, 228px\" \/><\/a><figcaption id=\"caption-attachment-89\" class=\"wp-caption-text\">Chart 12.1 Extrinsic and Intrinsic Motivation.<\/figcaption><\/figure>\n<p class=\"c3 c4\">Before we begin our discussion of the various theories of motivation, it is important to establish the distinction between intrinsic and extrinsic motivation. Simply put, <span class=\"c7\">intrinsic<\/span>\u00a0<span class=\"c7\">motivation<\/span>\u00a0comes from within: the enjoyment of a task, the satisfaction of a job well done, and the desire to achieve are all sources of intrinsic motivation. On the other hand, <span class=\"c7\">extrinsic<\/span>\u00a0<span class=\"c7\">motivation<\/span><span class=\"c6\">\u00a0comes about because of external factors such as a bonus or another form of reward. Avoiding punishment or a bad outcome can also be a source of extrinsic motivation; fear, it is said, can be a great motivator.<\/span><\/p>\n<h1 class=\"c54\"><span class=\"c12 c7\">Hierarchy of Needs Theory<\/span><\/h1>\n<p>Psychologist Abraham Maslow\u2019s <span class=\"c7 c33\"><a class=\"c48\" href=\"https:\/\/www.google.com\/url?q=https:\/\/www.youtube.com\/watch?v%3DUgp3hm2JIqM&amp;sa=D&amp;ust=1524676422507000\">hierarchy of needs theory<\/a><\/span><span class=\"c6\">\u00a0proposed that we are motivated by the five initially unmet needs, arranged in the hierarchical order shown below, which also lists specific examples of each type of need in both the personal and work<\/span> spheres of life. Look, for instance, at the list of personal needs in the middle column. At the bottom are <span class=\"c7\">physiological needs<\/span> (life-sustaining needs, such as food and shelter). Working up the hierarchy we experience <span class=\"c7\">safety needs<\/span>\u00a0(financial stability, freedom from physical harm), <span class=\"c7\">social needs<\/span>\u00a0(the need to belong and have friends), <span class=\"c7\">esteem needs <\/span>(the need for self-respect and status), and <span class=\"c7\">self-actualization needs<\/span><span class=\"c6\">\u00a0(the need to reach one\u2019s full potential or achieve some creative success). There are two key things to remember about Maslow\u2019s model:<\/span><\/p>\n<ol class=\"c14 lst-kix_list_3-0 start\" start=\"1\">\n<li class=\"c22\"><span class=\"c6\">We must satisfy lower-level needs before we seek to satisfy higher-level needs.<\/span><\/li>\n<li class=\"c41\"><span class=\"c6\">Once we\u2019ve satisfied a need, it no longer motivates us; the next higher need takes its place.<\/span><\/li>\n<\/ol>\n<figure id=\"attachment_90\" aria-describedby=\"caption-attachment-90\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-90 size-large\" src=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image3-2-1024x617.png\" alt=\"Chart outlining Maslow\u2019s Hierarchy of Needs and how each level relates to personal and professional fulfillment. Lowest: Physiological - Food and shelter - salary; Safety: Financial stability - Seniority\/job security; Social: Family and friendships - Team membership and social activities; Esteem: Status and respect - Authority, titles, recognition; Highest: Self-Actualization: Creative success and achievement; Challenging work, leadership, professional achievement.\" width=\"1024\" height=\"617\" srcset=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image3-2-1024x617.png 1024w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image3-2-300x181.png 300w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image3-2-768x463.png 768w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image3-2-65x39.png 65w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image3-2-225x136.png 225w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image3-2-350x211.png 350w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image3-2.png 1345w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-90\" class=\"wp-caption-text\">Chart 12.2 Hierarchy of Needs Theory<\/figcaption><\/figure>\n<p class=\"c51\">Let\u2019s say, for example, that for a variety of reasons that aren\u2019t your fault, you\u2019re broke, hungry, and homeless. Because you\u2019ll probably take almost any job that will pay for food and housing (<span class=\"c5\">physiological <\/span>needs), you go to work repossessing cars. Fortunately, your student loan finally comes through, and with enough money to feed yourself, you can go back to school and look for a job that\u2019s not so risky (a <span class=\"c5\">safety <\/span>need). You find a job as a night janitor in the library, and though you feel secure, you start to feel cut off from your friends, who are active during daylight hours. You want to work among people, not books (a <span class=\"c5\">social <\/span><span class=\"c6\">need). So now you join several of your friends selling pizza in the student centre. This job improves your social life, but even though you\u2019re very good at making pizzas, it\u2019s not terribly satisfying. You\u2019d <\/span>like something that your friends will respect enough to stop teasing you about the pizza job (an <span class=\"c5\">esteem <\/span>need). So you study hard and land a job as an intern in the governor\u2019s office. On graduation, you move up through a series of government appointments and eventually run for state senator. As you\u2019re sworn into office, you realize that you\u2019ve reached your full potential (a <span class=\"c5\">self-actualization <\/span><span class=\"c6\">need) and you comment to yourself, \u201cIt doesn\u2019t get any better than this.\u201d<\/span><\/p>\n<h1 class=\"c9\">Needs Theory and the Workplace<\/h1>\n<p class=\"c3 c4\"><span class=\"c6\">What implications does Maslow\u2019s theory have for business managers? There are two key points: (1) Not all employees are driven by the same needs, and (2) the needs that motivate individuals can change over time. Managers should consider which needs different employees are trying to satisfy and should structure rewards and other forms of recognition accordingly. For example, when you got your first job repossessing cars, you were motivated by the need for money to buy food. If you\u2019d been given a choice between a raise or a plaque recognizing your accomplishments, you\u2019d undoubtedly have opted for the money. As a city councillor, by contrast, you may prefer public recognition of work well done (say, election to higher office) to a pay raise.<\/span><\/p>\n<h1 class=\"c53\">Two-Factor Theory<\/h1>\n<p class=\"c3 c4\">Another psychologist, Frederick Herzberg, set out to determine which work factors (such as wages, job security, or advancement) made people feel good about their jobs and which factors made them feel bad about their jobs. He surveyed workers, analyzed the results, and concluded that to understand employee <span class=\"c5\">satisfaction <\/span>(or <span class=\"c5\">dissatisfaction<\/span><span class=\"c6\">), he had to divide work factors into two categories:<\/span><\/p>\n<ul class=\"c14 lst-kix_list_4-0 start\">\n<li class=\"c43\"><span class=\"c5 c7\">Motivation factors<\/span><span class=\"c6\">. Those factors that are strong contributors to job satisfaction<\/span><\/li>\n<li class=\"c25 c36\"><span class=\"c0\">Hygiene factors<\/span><span class=\"c6\">. Those factors that are <\/span><span class=\"c24 c5\">not <\/span><span class=\"c6\">strong contributors to satisfaction but that must be present to meet a worker\u2019s expectations and prevent job dissatisfaction<\/span><\/li>\n<\/ul>\n<p class=\"c21\">The graphic below illustrates Herzberg\u2019s two-factor theory. Note that motivation factors (such as promotion opportunities) relate to <span class=\"c5\">the nature of the work itself and the way the employee performs it<\/span>. Hygiene factors (such as physical working conditions) relate to <span class=\"c5\">the environment in which it\u2019s performed<\/span><span class=\"c6\">. <\/span><\/p>\n<figure id=\"attachment_106\" aria-describedby=\"caption-attachment-106\" style=\"width: 1120px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-106 size-full\" src=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image7.png\" alt=\"Complex graphic with two text boxes, one which lists Hygiene factors and one which lists Motivation factors. Hygiene factors include: pay, job security, company policies, relations with others, quality of supervision, physical working conditions. Motivation factors include: recognition, achievement, responsibility, promotion opportunities, opportunities for personal growth. Job satisfaction arrows from High to Low indicate how poor hygiene factors will increase job dissatisfaction, while good motivators will increase satisfaction.\" width=\"1120\" height=\"464\" srcset=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image7.png 1120w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image7-300x124.png 300w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image7-1024x424.png 1024w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image7-768x318.png 768w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image7-65x27.png 65w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image7-225x93.png 225w, https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/image7-350x145.png 350w\" sizes=\"auto, (max-width: 1120px) 100vw, 1120px\" \/><figcaption id=\"caption-attachment-106\" class=\"wp-caption-text\">Chart 12.3 Herzberg\u2019s Two-Factor theory: Poor hygiene factors will increase job dissatisfaction, while good motivators will increase satisfaction.<\/figcaption><\/figure>\n<h1 class=\"c9\">Two-Factor Theory and the Workplace<\/h1>\n<p class=\"c3 c4\"><span class=\"c6\">We\u2019ll ask the same question about Herzberg\u2019s model as we did about Maslow\u2019s: What does it mean for managers? Suppose you\u2019re a senior manager in an accounting firm, where you supervise a team of accountants, each of whom has been with the firm for five years. How would you use Herzberg\u2019s model to motivate the employees who report to you? Let\u2019s start with hygiene factors. Are salaries reasonable? What about working conditions? Does each accountant have his or her own workspace, or are they crammed into tiny workrooms? Are they being properly supervised or are they left on their own to sink or swim? If hygiene factors like these don\u2019t meet employees\u2019 expectations, they may be dissatisfied with their jobs.<\/span><\/p>\n<p class=\"c3 c4\">Fixing problems related to hygiene factors may alleviate job <span class=\"c5\">dissatisfaction<\/span>, but it won\u2019t necessarily improve anyone\u2019s job <span class=\"c5\">satisfaction<\/span><span class=\"c6\">. To increase satisfaction (and motivate someone to perform better), you must address motivation factors. Is the work itself challenging and stimulating? Do employees receive recognition for jobs well done? Will the work that an accountant has been assigned help him or her to advance in the firm? According<\/span><span class=\"c6\">\u00a0to Herzberg, motivation requires a twofold approach: eliminating \u201cdissatisfiers\u201d and enhancing satisfiers.<\/span><\/p>\n<h1 class=\"c32\">Expectancy Theory<\/h1>\n<p class=\"c3 c4\">If you were a manager, wouldn\u2019t you like to know how your employees decide whether to work hard or goof off? Wouldn\u2019t it be nice to know whether a planned rewards program will have the desired effect \u2014 namely, motivating them to perform better in their jobs? These are the issues considered by psychologist Victor Vroom in his <span class=\"c7\">expectancy theory<\/span><span class=\"c6\">, which proposes that employees will work hard to earn rewards that they value and that they consider \u201cattainable\u201d.<\/span><\/p>\n<p class=\"c4 c23\"><span class=\"c6\">As you can see from the figure below, Vroom argues that an employee will be motivated to exert a high level of effort to obtain a reward under three conditions \u2014 the employee:<\/span><\/p>\n<ol class=\"c14 lst-kix_list_5-0 start\" start=\"1\">\n<li class=\"c26 c25 c57\"><span class=\"c6\">believes that his or her efforts will result in acceptable performance;<\/span><\/li>\n<li class=\"c25 c42\"><span class=\"c6\">believes that acceptable performance will lead to the desired reward; and<\/span><\/li>\n<li class=\"c25 c49\"><span class=\"c6\">values the reward.<\/span><\/li>\n<\/ol>\n<figure id=\"attachment_107\" aria-describedby=\"caption-attachment-107\" style=\"width: 516px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-107 size-full\" src=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/Expectancy-Theory.png\" alt=\"Complex graphic with three text boxes, each with a distinct subject regarding employee expectations in three categories: Effort, Performance and Reward. Employees believe that effort will produce an acceptable performance. Employees believe that acceptable performance will earn them the desired reward. Employees value the offered reward.\" width=\"516\" height=\"246\" \/><figcaption id=\"caption-attachment-107\" class=\"wp-caption-text\">Chart 12.4 Expectancy Theory<\/figcaption><\/figure>\n<h1 class=\"c9\">Expectancy Theory and the Workplace<\/h1>\n<p class=\"c46\">To apply expectancy theory to a real-world situation, let\u2019s analyze an automobile-insurance company with one hundred agents who work from a call centre. Assume that the firm pays a base salary of $2,000 a month, plus a $200 commission on each policy sold above ten policies a month. In terms of expectancy theory, under what conditions would an agent be motivated to sell more than ten policies a month?<\/p>\n<ol class=\"c14 lst-kix_list_6-0 start\" start=\"1\">\n<li class=\"c23 c31\"><span class=\"c6\">The agent would have to believe that his or her efforts would result in policy sales (that, in other words, there\u2019s a positive link between effort and performance).<\/span><\/li>\n<li class=\"c16\"><span class=\"c6\">The agent would have to be confident that if he or she sold more than ten policies in a given month, there would indeed be a bonus (a positive link between performance and reward).<\/span><\/li>\n<li class=\"c16\"><span class=\"c6\">The $200 bonus per policy would have <\/span>to<span class=\"c6\">\u00a0be of value to the agent.<\/span><\/li>\n<\/ol>\n<p class=\"c3\">Now let\u2019s alter the scenario slightly. Say that the company raises prices, thus making it hard<span class=\"c6\">er to sell the policies. How will agents\u2019 motivation be affected? According to expectancy theory, motivation will suffer. Why? Because agents may be less confident that their efforts will lead to satisfactory performance. What if the company introduces a policy whereby agents get bonuses only if buyers don\u2019t cancel policies within ninety days? Now agents may be less confident that they\u2019ll get bonuses even if they do sell more than ten policies. Motivation will decrease because the link between performance and reward has been weakened. Finally, what will happen if bonuses are cut from $200 to $25? Obviously, the reward would be of less value to agents, and, again, motivation will suffer. The message of expectancy theory, then, is fairly clear: managers should offer rewards that employees value, set performance levels that they can reach, and ensure a strong link between performance and reward.<\/span><\/p>\n<h1 class=\"c32\">Equity Theory<\/h1>\n<p class=\"c3 c4\"><span class=\"c6\">What if you spent thirty hours working on a class report, did everything you were supposed to do, and handed in an excellent assignment (in your opinion). Your roommate, on the other hand, spent about five hours and put everything together at the last minute. You know, moreover, that he ignored half the requirements and never even ran his assignment through a spell-checker. A week later, your teacher returns the reports. You get a C and your roommate gets a B+. In all likelihood, you\u2019ll feel that you\u2019ve been treated unfairly relative to your roommate.<\/span><\/p>\n<p class=\"c3 c25 c4\">Your reaction makes sense according to the <span class=\"c33 c7\"><a class=\"c48\" href=\"https:\/\/www.google.com\/url?q=https:\/\/www.businessballs.com\/improve-workplace-performance\/adams-equity-theory-on-job-motivation-4045\/&amp;sa=D&amp;ust=1524676422515000\">equity theory of motivation<\/a><\/span>, which focuses on our perceptions of how fairly we\u2019re treated <span class=\"c5\">relative to others<\/span>. Applied to the work environment, this theory proposes that employees analyze their contributions or <span class=\"c7\">job inputs<\/span>\u00a0(hours worked, education, experience, work performance) and their rewards or <span class=\"c7\">job outcomes<\/span><span class=\"c6\">\u00a0(salary, bonus, promotion, recognition). Then they create a contributions\/rewards ratio and compare it to those of other people. The basis of comparison can be any one of the following:<\/span><\/p>\n<ul class=\"c14 lst-kix_list_7-0 start\">\n<li class=\"c23 c31\"><span class=\"c6\">someone in a similar <\/span><span class=\"c24 c5\">position;<\/span><\/li>\n<li class=\"c23 c31\"><span class=\"c6\">someone holding a different position in the same <\/span><span class=\"c24 c5\">organization;<\/span><\/li>\n<li class=\"c23 c31\"><span class=\"c6\">someone with a similar <\/span><span class=\"c24 c5\">occupation;<\/span><\/li>\n<li class=\"c23 c31\"><span class=\"c6\">someone who shares certain <\/span><span class=\"c5 c24\">characteristics <\/span><span class=\"c6\">(such as age, education, or level of experience); or<\/span><\/li>\n<li class=\"c3 c31\"><span class=\"c6\">oneself at another point in time.<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_108\" aria-describedby=\"caption-attachment-108\" style=\"width: 402px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-108 size-full\" src=\"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-content\/uploads\/sites\/1177\/2020\/11\/Equity-Theory.png\" alt=\"Scale graphic with two equally balanced sides. One side of the scale contains Job Inputs such as hours worked, education and work performance. The other side of the scale contains Job Outcomes such as promotions, bonus recognition and salary. The scale represents the balance needed between inputs and outcomes.\" width=\"402\" height=\"441\" \/><figcaption id=\"caption-attachment-108\" class=\"wp-caption-text\">Chart 5 Equity Theory<\/figcaption><\/figure>\n<p class=\"c3\" style=\"text-align: center\"><span class=\"c5\">\u00a0<\/span><\/p>\n<p class=\"c3 c4\">When individuals perceive that the ratio of their contributions to rewards is comparable to that of others, they perceive that they\u2019re being treated fairly or <span class=\"c7\">equitably<\/span>; when they perceive that the ratio is out of balance, they perceive <span class=\"c7\">inequity<\/span><span class=\"c6\">. Occasionally, people will perceive that they\u2019re being treated better than others. More often, however, they conclude that others are being treated better (and that they themselves are being treated worse). This is what you concluded when you saw your grade in the previous example. You\u2019ve calculated your ratio of contributions (hours worked, research and writing skills) to rewards (project grade), compared it to your roommate\u2019s ratio, and concluded that the two ratios are out of balance.<\/span><\/p>\n<p class=\"c26\"><span class=\"c6\">What will an employee do if he or she perceives an inequity? The individual might try to bring the ratio into balance, either by decreasing inputs (working fewer hours, not taking on additional tasks) or by increasing outputs (asking for a raise). If this strategy fails, an employee might complain to a supervisor, transfer to another job, leave the organization, or rationalize the situation (e.g., decide that the situation isn\u2019t so bad after all). Equity theory advises managers to focus on treating workers fairly, especially in determining compensation, which is, naturally, a common basis of comparison.<\/span><\/p>\n<h1>Strategies for Enhancing Motivation<\/h1>\n<div>\n<p>People are different and what inspires one person may not motivate another. For some it may be money, while others want rewards or recognition. Others find all the motivation they need within themselves and just get on and perform, therefore no one-size-fits-all method for motivating employees, boosting performance levels, and creating a happy, thriving work environment.\u00a0 \u00a0Companies have therefore used many different programs to increase motivation levels of their employees.<\/p>\n<p>Below are some examples of motivation strategies utilized to help keep employees happy and focused on doing their best.<\/p>\n<\/div>\n<div><\/div>\n<h2>Reinforcement and Behavior Modification<\/h2>\n<div><\/div>\n<div>Reinforcement is controlling and modifying employee behavior through the use of systematic rewards and punishments for specific behavior. Managers define specific behaviors that they want employee to exhibit (working hard, being customer service focus, stressing the importance of quality, etc.) and behaviors they want to eliminate (wasting time and resources, being disrespectful to customers,\u00a0 ignoring quality, etc.). Managers therefore use positive reinforcements (apply positive consequences when employees exhibits desired behaviors) or negative reinforcements (apply when when employee exhibit undesirable behaviors) to shape behavior.<\/div>\n<div><\/div>\n<h2>Empowerment<\/h2>\n<div><\/div>\n<div>Empowerment is a method of increasing job satisfaction by giving employees authority and responsibility in the management of their jobs and the company. This encourages employees to be self-motivated and to make suggestions for improvements. Some organizations have a flat organization structure without the usual hierarchy and empower their workers by giving them a lot of autonomy.<\/div>\n<div><\/div>\n<h2>Setting SMART Goals<\/h2>\n<div><\/div>\n<div><span style=\"text-align: initial;font-size: 1em\">SMART Goals stands or Specific, Measurable, Achievable, Realistic or Results-Oriented and Timely. Employees perform best when they have specific goals to achieve. By breaking larger objectives down into smaller ones, employees are motivated and focused; with smaller goals, team members get to clearly see that they have made progress and that their hard work has tangible meaning. <\/span><span style=\"text-align: initial;font-size: 1em\">One important method of setting performance goals is Management by Objectives (MBO). This involves managers and their subordinates collaboratively setting goals and evaluating progress.<\/span><\/div>\n<div><\/div>\n<h2>Promoting Teamwork and Collaboration<\/h2>\n<div>Teamwork is one of the greatest motivators. There are a variety of teams such as problem-solving teams, self-managed teams, etc. Creating an environment for teams to work collaboratively and communicate can motivate employees.<\/div>\n<h2>Job Enrichment and Redesign<\/h2>\n<p>Job enrichment is a method of increasing employees&#8217; job satisfaction by extending or adding motivating factors such as responsibility or growth. It may include combining tasks, forming quality circles (where employees are grouped into smaller teams that define, analyze, and solve quality and other problems within an area) or other work groups, or allowing employees to interact with customers or clients. Job enrichment is accomplished by job redesign to achieve a more satisfactory person-job fit, which motivates individuals who aspire to growth or achievement.<\/p>\n<h2>Modified Work Schedules<\/h2>\n<p>Modified work schedules include flextime, compressed work week, telecommuting, and workshare programs.<\/p>\n<p><em>Flextime Work Schedule<\/em><\/p>\n<p>A flextime work schedule allows people to choose their working hours. It is an alternative work schedule for employees who normally work the eight-hour, five-day workweek, usually from 8 a.m. to 5 p.m. Flextime scheduling permits employees to select a work schedule that may assist with individual needs, especially commuting and family needs. Flextime work schedules are available at many organizations in Canada and around the world; this is a method of increasing employees&#8217; job satisfaction by allowing employees some choice in the hours they work.<\/p>\n<p><em>Compressed Work Week<\/em><\/p>\n<p>A compressed\u00a0<span role=\"tooltip\"><span class=\"povykd\" role=\"button\" data-enable-toggle-animation=\"true\" data-extra-container-classes=\"ZLo7Eb\" data-hover-hide-delay=\"1000\" data-hover-open-delay=\"500\" data-send-open-event=\"true\" data-theme=\"0\" data-width=\"250\" data-ved=\"2ahUKEwirvJ6I9OX7AhUZMDQIHYfJCcgQmpgGegQIEBAD\"><span class=\"JPfdse\" data-bubble-link=\"\" data-segment-text=\"workweek\">work week<\/span><\/span><\/span>\u00a0is defined as\u00a0an alternative work schedule that compresses the standard weekly hours into fewer than five standard working days over a given period. The most popular compressed workweek is four days, 10 hours per day, which is used in many companies.<\/p>\n<p><em>Telecommuting<\/em><\/p>\n<p>Telecommuting is the ability for an employee to complete work assignments from outside the traditional workplace by using telecommunications tools such as email, phone, chat, and video apps.<\/p>\n<p><em>Workshare Programs<\/em><\/p>\n<p>Workshare or job share programs are methods of increasing employee job satisfaction by allowing two people to share one job.<\/p>\n<h1>Comprehensive Check<\/h1>\n<ol>\n<li>There are many different theories of motivation. If you believe that Maslow&#8217;s needs hierarchy best explains motivation in the workplace, how will you motivate your employees to work harder?<\/li>\n<li>Assuming that you have a new business venture employing 5 people, how would you use the Herzberg&#8217;s two-factor theory to support your new business venture?<\/li>\n<li>How is the job enrichment\/job redesign approach to motivation different from the modified work schedules approach to motivation? Are there similarities between the two approaches?<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<div class=\"textbox textbox--key-takeaways\">\n<header class=\"textbox__header\">\n<h1 class=\"textbox__title\">Key Takeaways<\/h1>\n<\/header>\n<div class=\"textbox__content\">\n<p>Important terms and concepts:<\/p>\n<ol>\n<li>Motivation describes a generated drive that propels people to achieve goals or pursue particular courses of action.<\/li>\n<li>There are four influential theories of motivation: hierarchy-of-needs theory, two-factor theory, expectancy theory, and equity theory:\n<ul>\n<li>Hierarchy-of-needs theory proposes that we\u2019re motivated by five unmet needs\u2014 physiological, safety, social, esteem, and self-actualization \u2014 and must satisfy lower-level needs before we seek to satisfy higher-level needs.<\/li>\n<li>Two-factor theory divides work factors into motivation factors (those that are strong contributors to job satisfaction) and hygiene factors (those that, though not big contributors to satisfaction, must be present to prevent job dissatisfaction).<\/li>\n<li>Expectancy theory proposes that employees work harder to obtain a reward when they value the reward, believe that their efforts will result in acceptable performance, and believe that acceptable performance will lead to a desired outcome or reward.<\/li>\n<li>Equity theory focuses on our perceptions of how fairly we\u2019re treated relative to others. This theory proposes that employees create rewards ratios that they compare to those of others and will be less motivated when they perceive an imbalance in treatment.<\/li>\n<\/ul>\n<\/li>\n<li>Employees use many different strategies to improve job satisfaction and employee motivation.<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<div class=\"glossary\"><span class=\"screen-reader-text\" id=\"definition\">definition<\/span><template id=\"term_94_456\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_94_456\"><div tabindex=\"-1\"><p>Key terms appear throughout the chapter. When you click on them, a definition will pop up. If you are using a downloaded or printed format, check the glossary in the back of the book. Please make sure you can define them!<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><\/div>","protected":false},"author":120,"menu_order":4,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-94","chapter","type-chapter","status-publish","hentry"],"part":366,"_links":{"self":[{"href":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-json\/pressbooks\/v2\/chapters\/94","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-json\/wp\/v2\/users\/120"}],"version-history":[{"count":23,"href":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-json\/pressbooks\/v2\/chapters\/94\/revisions"}],"predecessor-version":[{"id":1836,"href":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-json\/pressbooks\/v2\/chapters\/94\/revisions\/1836"}],"part":[{"href":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-json\/pressbooks\/v2\/parts\/366"}],"metadata":[{"href":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-json\/pressbooks\/v2\/chapters\/94\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-json\/wp\/v2\/media?parent=94"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=94"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-json\/wp\/v2\/contributor?post=94"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/wp-json\/wp\/v2\/license?post=94"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}