The nature of motivation and expectancy theory
What three things does motivation determine about a person's behaviour?
Direction, effort and persistence.
According to Maslow, which need is the prime motivator?
The lowest unmet need. Once a need is satisfied, it stops motivating.
What does equity theory focus on?
People's perceptions of the fairness of their work outcomes relative to their work inputs.
According to goal-setting theory, which two characteristics make a goal motivating?
Specific and difficult.
What is a merit pay plan?
A compensation plan that bases pay on performance.
What is the difference between intrinsic, extrinsic and prosocial motivation?
Intrinsic: the work itself is rewarding. Extrinsic: the work is done for material or social rewards, or to avoid punishment. Prosocial: the work is done to benefit or help others.
Name the three needs in Alderfer's ERG theory.
Existence, relatedness and growth.
What is a referent?
The person or group someone compares their own outcome–input ratio with.
When can specific, difficult goals hurt performance?
When the task is complex or very creative, or still requires a lot of learning. People focus on the target instead of learning the task.
When should pay be based on individual performance, and when on group or organisational performance?
Individual pay when individual performance can be measured accurately. Group or organisational pay when people work closely together.
Which concept in expectancy theory is a person's belief that effort will lead to a certain level of performance?
Expectancy.
What is frustration-regression in ERG theory?
When people can't satisfy a higher-level need, they become more motivated to satisfy a lower-level need.
What is the difference between underpayment inequity and overpayment inequity?
Underpayment: my outcome–input ratio is lower than my referent's. Overpayment: my ratio is higher than my referent's.
Name the four techniques of operant conditioning.
Positive reinforcement, negative reinforcement, extinction and punishment.
Why is a bonus often more motivating than a salary increase?
A bonus is tied directly to current performance and must be earned again. A salary increase is based on past performance and stays permanently.
What is instrumentality, and what is valence?
Instrumentality is the belief that performance will lead to certain outcomes. Valence is how desirable each outcome is to the person.
What is the difference between Herzberg's motivator needs and hygiene needs?
Motivator needs relate to the work itself (autonomy, responsibility, growth) and create motivation. Hygiene needs relate to the context of the work (pay, conditions, security). When they are missing, people are dissatisfied. When they are present, people are not dissatisfied, but not motivated either.
Name three ways people try to restore equity when they feel underpaid.
Lower their inputs, ask for more outcomes (a raise or promotion), change their perceptions, choose a different referent, or leave the organisation.
What is the difference between negative reinforcement and punishment?
Negative reinforcement removes an unpleasant outcome to encourage desired behaviour. Punishment adds a negative consequence to stop undesired behaviour.
What is the difference between a Scanlon plan and profit sharing?
A Scanlon plan shares the money saved through cost-cutting ideas. Profit sharing gives employees a share of the company's profits.
According to expectancy theory, when is motivation high, and what happens if one of the three factors is zero?
Motivation is high only when expectancy, instrumentality and valence are all high. If any one is zero, motivation is zero.
Name McClelland's three needs. Which one helps first-line and middle managers, and which matters most for top managers?
Achievement, affiliation and power. A high need for achievement helps first-line and middle managers. Need for power matters most for top managers. A high need for affiliation can be a problem for managers.
Name the four types of organisational justice and the question each one asks.
Distributive (is the outcome fair?), procedural (is the way it's decided fair?), interpersonal (am I treated with respect?) and informational (is it explained to me?).
Social learning theory adds three ideas to operant conditioning. Name them.
Vicarious learning (watching others get rewarded), self-reinforcement (rewarding yourself) and self-efficacy (belief in your own ability to succeed).
What are stock options, and what is one risk of using them?
The right to buy company shares later at today's price. They can tempt managers to inflate the share price.