Intrinsic and Extrinsic Needs and Rewards

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Intrinsic and Extrinsic Needs and Rewards

• Intrinsic - Higher needs, Internal
• Accomplishment, competence, fulfillment,
• self-determination received from the process of
  action

• Extrinsic - Lower needs, External
• Material comfort, safety, security given by
  another person

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Content vs. Process Motivation Theories

• Content theories
• explain why people have different needs at
  different times
• Process theories
• describe the processes through which needs are
  translated into behavior. Process theories try
  to explain why and how people are motivated.

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Basic Model of Motivation
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Needs Hierarchy Theory
Needs HierarchyTheory
Self- Actualization

• Maslow arranged five needs in a hierarchy
• Satisfaction-progression process
• People who experience self-actualization desire
  more rather than less of this need

Esteem
Belongingness
Safety
Physiological
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Maslows Hierarchy of Needs
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Acquired Needs Theory by David McClelland

• Need for Achievement -Desire to accomplish
  something difficult, attain high standards of
  success, master complex tasks, surpass others

• Need for Affiliation -Desire to form close
  personal relationships and friendships, avoid
  conflict

• Need for Power -Desire to influence or control
  others, be responsible and have authority over
  others

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Frederick Herzberg Two-Factor Theory
Highly Satisfied Neither Highly
Dissatisfied
Motivators influence level of satisfaction
Motivators Achievement Recognition Responsibility
Work itself Personal growth
Hygiene Factors Work Conditions Pay/security Comp
any Policy Supervisors Interpersonal Rel.
Hygiene factors influence level of dissatisfaction
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Implications of Content Theories

• Balance competition/cooperation by rewarding
  individual achievement and teamwork
• Offer employees a choice of rewards
• people have different needs at different times
• Support the drive to learn by providing new
  learning opportunities
• Dont rely too much on financial rewards

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Key Elements ofExpectancy Theory
Will putting effort into the task lead to the
desired performance?
Will high performance lead to the desired outcome?
Are the available outcomes highly valued?
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Assumptions - Expectancy

• Workers are motivated to receive positive
  outcomes and avoid negative ones
• Workers are rational, careful processors of
  information
• Workers can make choices about how they behave,
  act, and how much effort they exert

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Expectancy Theory in Practice

• Increasing the E-to-P expectancy
• training, selection, resources, clarify roles,
  provide coaching and feedback
• Increasing the P-to-O expectancy
• Measure performance accurately, explain how
  rewards are based on past performance
• Increasing outcome valences
• Use valued rewards, individualize rewards,
  minimize countervalent outcomes

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Equity Defined

• A State of psychological comfort
• Exists when an individuals input to outcome
  ratio is equal to the ratio of the comparison
  other

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Elements of Equity Theory

• Outcome/input ratio
• inputs -- what employee contributes (e.g. skill)
• outcomes -- what employees receive (e.g. pay)
• Comparison other
• person/people we compare ratio with
• not easily identifiable
• Equity evaluation
• compare outcome/input ratio withthe comparison
  other

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Overreward vs Underreward Inequity
You
Comparison Other
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Consequences of Inequity

• Change inputs
• Change outcomes
• Change perceptions
• Leave the field
• Act on the comparison other
• Change the comparison other

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Equity Sensitivity

• Benevolents
• Tolerant of being underrewarded
• Equity Sensitives
• Want ratio to be equal to the comparison other
• Entitleds
• Prefer receiving proportionately more than others

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Goals are Motivational

• Because you can choose where you want to go
• You know exactly what to do
• Can provide short and long term vision
• Fosters planning and resource evaluation

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Effective Goal Setting
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Effect of Goal Difficulty on Performance
High
Area of Optimal Goal Difficulty
Task Performance
Low
Moderate
Challenging
Impossible
Goal Difficulty
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Outcomes of Goal Setting

• Greater productivity and sales
• Improved performance
• Improved self-confidence
• Increases motivation to achieve
• Increases pride and satisfaction
• Helps reduce negative attitudes toward
  work/increases morale

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Research Suggests Those who use Goal Setting

• Suffer less from stress and anxiety
• Concentrate better
• Show more self-confidence
• Perform better
• Are more satisfied with their jobs

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Behavior Modification

• We operate on the environment
• Alter behavior to maximize positive and minimize
  adverse consequences. Behavior is a function of
  its consequences
• Operant means voluntary or learned behavior as
  opposed to reflexive or unlearned behavior
• Law of effect
• Likelihood that an operant behavior will be
  repeated depends on its consequences

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A-B-Cs of Behavior Modification
Example
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Reinforcement Perspectiveon Motivation

• Positive Reinforcement increase strength and
  frequency of a behavior by providing something
  pleasing
• Negative Reinforcement increase strength and
  frequency of a behavior by the removal or
  avoidance of a consequence (stop criticizing and
  good performance results)
• Punishment decrease strength and frequency of a
  behavior by giving the employee something
  displeasing or taking away something pleasing
• Extinction decrease strength and frequency of a
  behavior by providing no consequence

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Contingencies of Reinforcement
Consequence is Introduced
Consequence is Removed
No Consequence
Behavior Increases/ Maintained
Positive reinforcement
Negative reinforcement
Punishment
Extinction
Punishment
Behavior Decreases
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Behavior Modification Limitations

• Cant reinforce nonobservable behavior
• Reinforcer tends to wear off
• Variable ratio schedule is a form of gambling
• Ethical concerns about perceived manipulation

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OrganizationwideMotivational Programs

• Employee ownership - Psychological, stock

• Pay for knowledge - Skills possessed

• Gainsharing - Teamwork

• Pay for performance - Results

• Job enrichment - High level, more tasks