Managing Employee Motivation and Performance Griffin, Management, 15e©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

By the end of this chapter, you should be able to:
15-1 Discuss the nature of motivation, including its
importance and historical perspectives.
15-2 Describe the major content perspectives on
motivation.
15-3 Describe the major process perspectives on
motivation.
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3
Learning Objectives (2 of 2)
By the end of this chapter, you should be able to:
15-4 Describe reinforcement perspectives on motivation.
15-5 Discuss popular motivational strategies.
15-6 Describe the role of organizational reward systems in
motivation.
Griffin, Management, 15e©2021 Cengage Le

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Management
Chapter Fifteen: Managing Employee
Motivation and Performance

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Warm Up
•Why do some people seem to be great team members who automatically
work hard, and others seem to be okay with letting others do the work?
•What motivates you to accomplish your goals, do your best, and go above
expectations?

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Learning Objectives (1 of 2)
By the end of this chapter, you should be able to:
15-1 Discuss the nature of motivation, including its
importance and historical perspectives.
15-2 Describe the major content perspectives on
motivation.
15-3 Describe the major process perspectives on
motivation.

4. 4
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Learning Objectives (2 of 2)
By the end of this chapter, you should be able to:
15-4 Describe reinforcement perspectives on motivation.
15-5 Discuss popular motivational strategies.
15-6 Describe the role of organizational reward systems in
motivation.

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15-1a The Importance of Employee Motivation
in the Workplace
•Motivation:
−The set of forces that cause people to behave in
certain ways
•Determinants of individual performance
−Motivation
−Ability
−Work environment

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Figure 15.1 The Motivation Framework

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15-1b Historical Perspectives on Motivation
•Traditional approach:
−Frederick Taylor assumed people were motivated by
money.
•Human relations approach:
•People want to feel useful and important
•Strong social needs
•Human resource approach:
•Contributions are valuable to individuals and organizations.

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Poll 1
Which theory of motivation do you agree with most?
A.Most people are motivated by money.
B.Most people want to feel useful and contribute to something.
C.Most people are motivated because there is a need they wish to fill.

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15-2 Content Perspectives On Motivation
•Content perspectives
−Approach to motivation that tries to answer the question
“What factors motivate people?”
−Focus on needs and need deficiencies of individuals
•Content perspectives of motivation
−Maslow’s hierarchy of needs
−Herzberg’s two-factor theory
−McClelland’s achievement, power, and affiliation needs

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15-2a The Needs Hierarchy Approach (1 of 2)
Maslow’s hierarchy of needs suggests that people must satisfy five
groups of needs in order
•Physiological: Attending to basic survival and biological
functions
•Security: Seeking a safe physical and emotional environment
•Belongingness: Experiencing love and affection
•Esteem: Having a positive self-image/self-respect and
recognition and respect from others
•Self-actualization: Realizing one’s potential for personal growth
and development

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15-2a The Needs Hierarchy Approach (2 of 2)
Contributions of Maslow’s theory
•Identified and categorized individual needs
•Emphasized importance of needs to motivation
Weaknesses of Maslow’s theory
•All levels of need are not always present.
•Ordering or importance of needs is not always the same.
•Cultural differences can impact the ordering and salience
of needs.

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15-2a The ERG Theory
•ERG theory of motivation:
−People’s needs are grouped into three possibly
overlapping categories:
▪Existence
▪Relatedness
▪Growth
▪Frustration-regression element: If needs remain
unsatisfied, the person will become frustrated, regress
to a lower level, and begin to pursue those things again.

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15-2b The Two-Factor Theory
•Motivation becomes a two-stage process:
−Ensuring that deficient hygiene factors are not blocking
motivation
−Using job enrichment and redesign of jobs to increase
motivational factors for employees
•Criticisms of the two-factor theory
−Interview findings are subject to different explanations.
−Sample population was not representative.
−Subsequent research has not upheld theory.

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Figure 15.3 The Two-Factor
Theory of Motivation

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15-2c McClelland - Individual Human Needs
•Need for achievement
−The desire to accomplish a goal or task more effectively
than in the past
•Need for affiliation
−The desire for human companionship and acceptance
•Need for power
−The desire to be influential in a group and to control one’s
environment

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Knowledge Check 1
Which theory of motivation argued that there are two stages in the
process of motivating employees: ensuring hygiene factors are not
deficient and giving employees an opportunity to experience motivation
factors?
A.Maslow’s hierarchy of needs
B.The ERG theory
C.Herzberg’s two-factor theory
D.McClelland’s human needs theory

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Knowledge Check 1: Answer
•Which theory of motivation argued that there are two stages in the process of
motivating employees: ensuring hygiene factors are not deficient and giving
employees an opportunity to experience motivation factors?
C. Herzberg’s two-factor theory
Motivation factors are related specifically to the work content. Hygiene factors
are related to the work environment. Herzberg argued that there are two stages
in the process of motivating employees. First, managers must ensure that the
hygiene factors are not deficient. By providing hygiene factors at an appropriate
level, managers do not necessarily stimulate motivation but merely ensure that
employees are “not dissatisfied.” In stage two, employees are given the
opportunity to experience motivation factors such as achievement and
recognition. The result is predicted to be higher levels of satisfaction and
motivation.

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15-3 Process Perspectives on Motivation
•Process perspectives:
−Approaches to motivation that focus on why people choose
certain behavioral options to satisfy their needs and how
they evaluate their satisfaction after they have attained
those goals
•Process perspectives on motivation:
−Expectancy theory
−Porter-Lawler extension of expectancy theory
−Equity theory
−Goal-setting theory

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15-3a Expectancy Theory (1 of 3)
•Expectancy theory:
−Suggests that motivation depends on two things—how much
we want something and how likely we think we are to get it.
•Theory assumes that:
−Behavior is determined by personal and environmental forces.
−People make decisions about their own behavior.
−Different people have different types of needs, desires, and
goals.
−People choose among alternatives of behaviors in selecting
one that that leads to a desired outcome.

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Figure 15.4 Expectancy Theory

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15-3a Expectancy Theory (2 of 3)
•Effort-to-performance expectancy
−The individual’s perception of the probability that effort
will lead to a high level of performance
•Performance-to-outcome expectancy
−The individual’s perception of the probability that
performance will lead to a specific outcome,
consequence, or reward in an organizational setting

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15-3a Expectancy Theory (3 of 3)
•Valences
−An index of how much an individual values a particular
outcome. It is also the attractiveness of the outcome to
the individual.
•Outcomes (Consequences)
−Attractive outcomes have positive valences and
unattractive outcomes have negative valences.
−Outcomes to which an individual is indifferent have zero
valences.

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15-3a The Porter-Lawler Extension
•The Porter-Lawler extension
•Assumptions:
−If performance results in equitable and fair rewards, people will
be more satisfied.
−High performance can lead to rewards and high satisfaction.
•Types of rewards:
−Extrinsic rewards are outcomes set and awarded by external
parties (pay and promotion).
−Intrinsic rewards are outcomes that are internal to the individual
(self-esteem and sense of accomplishment).

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Figure 15.5 The Porter-Lawler Extension of
Expectancy Theory

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15-3b Equity Theory (1 of 2)
•Equity theory
−Contends that people are motivated to seek social equity in the
rewards they receive for performance
−Inputs to the job include:
▪Time, experience, effort, education, and loyalty
•Outcomes from a job include:
−Pay, recognition, promotions, social relationships, and intrinsic
rewards
•Feeling overrewarded:
−Increase or decrease inputs, distort ratios by rationalizing, help
the object person gain more outcomes

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15-3b Equity Theory (2 of 2)
•Feeling equitably rewarded:
−Maintain performance and accept comparison as fair
estimate
•Feeling underrewarded—reduce inequity by:
−Changing inputs by trying harder or slacking off
−Changing outcomes by demanding a raise
−Distorting ratios by altering perceptions of self or of others
−Leaving situation by quitting the job
−Choosing another object person

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15-3c Goal-Setting Theory
•Theory’s assumptions
−Behavior is a result of conscious goals and intentions.
−Setting goals influences behavior in organizations.
•Characteristics of goals
−Goal difficulty
−Goal specificity
−Goal acceptance
−Goal commitment

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Figure 15.6 The Expanded
Goal-Setting Theory

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Knowledge Check 2
According to the Porter-Lawler extension, what is the relationship between
satisfaction and performance?
A.High performance leads to high satisfaction.
B.High satisfaction leads to high performance.
C.Performance leads to higher rewards.
D.Rewards lead to satisfaction.

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Knowledge Check 2: Answer
•According to the Porter-Lawler extension, what is the relationship between
satisfaction and performance?
A.High performance leads to high satisfaction
Porter and Lawler suggested that there may indeed be a relationship between
satisfaction and performance but that it goes in the opposite
direction—that is, high performance may lead to high satisfaction.
Performance results in rewards for an individual. Some of these are extrinsic
(such as pay and promotions); others are intrinsic (such as self-esteem and
accomplishment). The person evaluates the equity, or
fairness, of the rewards relative to the effort expended and the level of
performance attained. If the rewards are perceived to be equitable, the
person is satisfied.

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15-4 Reinforcement Perspective on
Motivation
•Reinforcement theory:
•Approach to motivation that argues that behavior that
results in rewarding consequences is likely to be
repeated, whereas behavior that results in punishing
consequences is less likely to be repeated
•Focuses on the role of rewards as they cause
behavior to change or remain the same over time

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15-4a Kinds of Reinforcement in
Organizations (1 of 2)
•Positive reinforcement
−A method of strengthening behavior with rewards or positive
outcomes after a desired behavior is performed
•Avoidance
−Used to strengthen behavior by avoiding unpleasant
consequences that would result if the behavior were not
performed

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15-4a Kinds of Reinforcement in
Organizations (2 of 2)
•Punishment
−Used to weaken undesired behaviors by using negative
outcomes or unpleasant consequences when the behavior is
performed
•Extinction
−Used to weaken undesired behaviors by simply ignoring or not
reinforcing them

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15-4b Providing Reinforcement in
Organizations (1 of 2)
Arrangement of the reinforcement contingencies:
•Fixed-interval schedule
•Provides reinforcement at fixed intervals of time,
such as regular weekly paychecks
•Variable-interval schedule
•Provides reinforcement at varying intervals of time,
such as occasional visits by the supervisor

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15-4b Providing Reinforcement in
Organizations (2 of 2)
Schedules for applying reinforcement
•Fixed-ratio schedule
•Provides reinforcement after a fixed number of behaviors, regardless
of the time interval involved, such as a bonus for every fifth sale
•Variable-ratio schedule
•Provides reinforcement after varying numbers of behaviors are
performed, such as the use of compliments by a supervisor on an
irregular basis

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15-4b Behavior Modification
Organizational behavior modification (OB Mod)
•Method for applying the basic elements of reinforcement
theory in an organizational setting
•Specific behaviors are tied to specific forms of
reinforcement.

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Discussion #1
Consider a class you have taken or a job you have held.
Using that one experience, offer examples of times when the
professor or manager used positive reinforcement,
avoidance, punishment, and extinction to manage students’
or employees’ behavior. Were there other types of
reinforcement that might have worked better? Why or why
not?

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15-5a Empowerment and Participation
Empowerment and participation
•Empowerment
•The process of enabling workers to set their own work
goals, make decisions, and solve problems within their
sphere of responsibility and authority
•Participation
•The process of giving employees a voice in making
decisions about their own work

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15-5b Alternative Forms of Work
Arrangements (1 of 2)
•Variable work schedules
•Compressed work schedule
•Working a full 40-hour week in fewer than the
traditional five days
•“Nine-eighty” schedule
•Working one full week (five days) and one compressed
week (four days), yielding one day off work every other
week

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15-5b Alternative Forms of Work
Arrangements (2 of 2)
•Flexible work schedules
•Work schedules that allow employees to select, within
broad parameters, the hours they work
•Job sharing
•When two part-time employees share one full-time job
•Telecommuting
•Allowing employees to spend part of their time working
offsite, usually at home

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Poll 2
During the recent COVID-19 pandemic, many people worked
alternative work schedules. Did you? If so, which?
A.Compressed work week
B.Telecommuting
C.Flexible hours
D.No, I worked the same way as I usually do

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15-6 Using Reward Systems to Motivate
Performance
•Reward system
•Formal and informal mechanisms by which employee
performance is defined, evaluated, and rewarded
•Effects of organizational rewards:
•Higher-level performance-based rewards motivate
employees to work harder.
•Rewards help align employee self-interest with
organizational goals.
•Rewards foster increased retention and citizenship.

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15-6a Merit Reward Systems
•Merit pay
•Pay awarded to employees on the basis of the relative
value of their contributions to the organization
•The greater the contribution, the greater the reward
•Merit pay plan
•Compensation plan that formally bases at least some
meaningful portion of compensation on merit

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15-6b Incentive Reward Systems
•Monetary incentives
•Piece-rate incentive plan
•Reward system wherein the organization pays an employee a
certain amount of money for every unit he or she produces
•Sales commissions plan
•Employee is paid a percentage of the employee’s sales to customers
for selling the firm’s products or services.
•Nonmonetary Incentives
•Immediate, and one-time rewards
•Days off, additional paid vacation time, and special perks

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15-6c Team and Group Reward Systems
•Gainsharing programs
•Designed to share the cost savings from productivity
improvements with employees
•Scanlon plan
•Similar to gainsharing, but the distribution of gains is tilted
much more heavily toward employees
•Profit-sharing plans
•Provide an annual bonus to all employees based on
corporate profits

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15-6d Executive Compensation
•Standard forms of executive compensation
•Base salary
•Incentive pay (bonuses)
•Special forms of executive compensation
•Stock option plans
•Executive perks
•Criticism of executive compensation
•Excessively large compensation amounts
•Compensation not tied to overall and long-term performance of the
organization
•Earnings gap between executive pay and typical employee pay

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15-6e New Approaches to
Performance-Based Rewards
•Employee participation
•Allowing employee participation in deciding the distribution of rewards
•Innovation in incentive programs
•Offering stock options to all employees
•Individualizing reward systems such that different employees can be
offered different incentives
•More effective communication
•Sharing information about how awards are earned and distributed

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Poll 3
Which type of benefit would you prefer?
A.Flexible hours
B.Additional vacation
C.Work from home
D.Bonus

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Summary
Now that the lesson has ended, you will have learned how to:
•Discuss the nature of motivation, including its importance and
historical perspectives.
•Describe the major content perspectives on motivation.
•Describe the major process perspectives on motivation.
•Describe reinforcement perspectives on motivation.
•Discuss popular motivational strategies.
•Describe the role of organizational reward systems in motivation.

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Consider each of the following perspectives on motivation: needs
hierarchy, two-factor theory, expectancy theory, equity theory, and
goal-setting theory. How does each of these perspectives depend upon
learned motivation? On personal motivation?
•Personal motivation is important for achieving the layers of Maslow’s hierarchy of needs. Personal
motivation may lead a person to seek a job offering the security needs that he or she desires.
Personal motivation may even satisfy the person’s belongingness needs themselves if the
manager is unable to fulfill those needs. Even the top two tiers require personal motivation to apply
for that higher-level job or continuing to grow in their job. The two-factor theory requires personal
motivation to achieve the motivation factors. Learned motivation could be used on the hygiene
factors. Personal motivation would play into expectancy theory if the person believed there was a
good chance of achieving the outcome. It would require learned motivation if the person did not
believe the outcome was an option. Personal motivation and learned motivation could come into
play if an employee perceives an imbalance in the equity theory. The worker will try to correct the
imbalance, and this may take motivation from both internal and learned motivation. Goal-setting
theory relies mainly on personal motivation but also some learned motivation. Workers motivated
to complete goals (personal) sometimes require some extra motivation (learned) in order to
achieve the tougher goals.

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What about you? Which form of motivation—learned motivation or personal
motivation—has played a greater role in your pursuit of your goals, whether
in school, at work, or in both areas? Given this assessment of your own
experience with motivation, which of the motivational perspectives listed in
Question 1 is most likely to help you in your work life? Whatever your
answers to these questions, be sure to give examples from your own
experience.
•Due to the personal nature of these questions, students’ answers will vary
widely.

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The theory that too few students get the help they need in setting clear
career paths suggests that colleges should provide more career counseling.
However, according to the National Survey of Student Engagement, only 43
percent of college seniors talked very often or often about career plans with
a faculty member or adviser; 39 percent did sometimes, and 17 percent
never did. How about you? Have you sought career advice or counseling
from resources available at your school? Do you plan to? Have you sought
advice elsewhere? If so, where elsewhere and why elsewhere?
•Student responses will vary.

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The Gallup survey measured levels of engagement by asking respondents
whether they agreed or disagreed with several statements about
post-graduation work experiences. Here are six of those statements:
I have opportunities to learn and grow.
My opinions seem to count.
I have the opportunity to do what I do best every day.
I have the tools and resources I need to do my job.
My supervisor encourages my development.
I know what is expected of me.
List these six statements in their order of importance to you as probable
factors in your satisfaction with a job. Be prepared to discuss your
priorities.
•One of these statements proved to be the strongest predictor of workplace
engagement among all of the statements in the survey
The ordering of the statements will vary by student. The item “I have the
opportunity to do what I do best every day” is the strongest predictor of workplace
engagement.