Employee Motivation - PowerPoint

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					                 Employee Motivation

Definition of Motivation: Factors which energize,
  direct and sustain employee behavior.
• Motivation is goal directed behavior.
• Motivation is NOT the same as Performance.
• Performance = Motivation X Ability
• Dimensions of Motivation
   – Form             - Duration
   – Direction        - Intensity

                    Management 4030 - Employee
                           Motivation
           Theories of Motivation

• Cognitive Theories; POV = The Employee
  – Expectancy Theory
  – Equity Theory
• Behavior Theory; POV = The Manager
  – Reinforcement theory
• Financial Theory; POV = The Business Owner
  – Agency Theory



                 Management 4030 - Employee
                        Motivation
     Expectancy Theory (Vroom, 1964)

• People’s Behavior results from conscious choices
  among alternatives.
• Valence - A person’s preference among various
  outcomes or rewards. Ex. Do I prefer to achieve a
  higher performance goal or more leisure time?
• Instrumentality - A person’s belief that a certain
  level of performance will lead to certain desirable
  consequences. Ex. If I study 2 hours every day
  for my finance class, will I earn an A grade?
                   Management 4030 - Employee
                          Motivation
         Expectancy Theory (Cont’d)

• Expectancy - A person’s belief about whether a
  certain performance outcome is possible. Ex. Can
  I sell 12 houses this year? Will my team achieve
  “excellence” in the customer satisfaction survey?
• Assumption - People select to pursue the level of
  performance they believe will maximize their
  utility (happiness).
• Motivation = f (V, I, E)
             where V, I, E > 0
                  Management 4030 - Employee
                         Motivation
   Expectancy Theory Applications for
               Managers
• Managing Valence
  – Rewards must be attractive to each employee
• Managing Instrumentality
  – High performance levels must result in attractive
    rewards (do I want to become a partner in the
    accounting firm?)
  – Performance levels must be set at a reasonable level of
    difficulty (ex. Sales incentives)
• Managing Expectancy
  – Coaching and frequent feedback increase expectancies.
  – Train employees for skill gaps so abilities are good.
                    Management 4030 - Employee
                           Motivation

				
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