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After completing this unit, you should be able to: Recognize and apply the difference between intrinsic and extrinsic rewards, motivate others by meeting their higher-level needs, apply needs-based theory of motivation implement individual and systemwide rewards, | Chapter 8 Motivation and Empowerment Chapter Objectives Recognize and apply the difference between intrinsic and extrinsic rewards. Motivate others by meeting their higher-level needs. Apply needs-based theory of motivation. Implement individual and systemwide rewards. Avoid the disadvantages of “carrot-and-stick” motivation. Implement empowerment by providing the five elements of information, knowledge, discretion, meaning, and rewards. Motivation The forces either internal or external to a person that arouse enthusiasm and persistence to pursue a certain course of action Ex. 8.1 A Simple Model of Motivation Need Creates desire to fulfill needs (money, friendship, recognition, achievement Behavior Results in actions to fulfill needs Rewards Satisfy needs: intrinsic or extrinsic rewards Feedback Reward informs person whether behavior was appropriate and should be used again Types of Rewards Intrinsic Rewards Internal satisfactions a person receives in the process of performing a particular action Extrinsic Rewards Rewards given by another person, typically a supervisor, such as pay increases and promotions Systemwide Rewards Rewards that apply the same to all people within an organization or within a specific category or department Ex. 8.2 Examples of Intrinsic and Extrinsic Rewards Extrinsic Intrinsic Individual Systemwide Large merit increase Insurance benefits Feeling of self-fulfillment Pride in being part of a “winning” organization Ex. 8.3 Needs of People and Motivation Methods Needs of people Conventional management Lower needs Carrot and stick (Extrinsic) Control people Adequate effort Leadership Higher needs Empowerment (Intrinsic) Growth and fulfillment Best effort Ex. 8.4 Maslow’s Hierarchy of Needs Need Hierarchy Self-actualization Needs Esteem Needs Belongingness Needs Safety Needs Physiological Needs Fulfillment on the Job Opportunities for advancement, autonomy, growth, creativity Recognition, approval, high status, increased responsibilities Work groups, clients, coworkers, supervisors Safe work, fringe benefits, job security Heat, air, base salary Ex. 8.5 Herzberg’s Two-Factor Theory Area of Satisfaction Area of Dissatisfaction Motivators influence level of satisfaction Hygiene factors influence level of dissatisfaction Motivators Achievement Recognition Responsibility Work itself Personal growth Hygiene Factors Work conditions Pay/security Co. policies Supervisors Interpersonal. relationships Highly Satisfied Neither Satisfied nor Dissatisfied Highly Dissatisfied Acquired Needs Theory McClelland’s theory that proposes that certain types of needs are acquired during an individual’s lifetime Three needs most frequently studied: Need for achievement Need for affiliation Need for power Ex. 8.6 Key Elements of Expectancy Theory E > P expectancy Effort Performance P > O expectancy Performance Outcomes Valence – value of outcomes (pay, recognition, other rewards) Motivation Will putting effort into the task lead to the desired performance? Will high performance lead to the desired outcomes? Are the available outcomes highly valued? Equity Theory A theory that proposes that people are motivated to seek social equity in the rewards they expect for performance
