Extrinsic And Intrinsic Motivation Discussion Please read Chapter 6 and answer questions below (total of 200+ words)Part 1: What is Motivation and how does

Extrinsic And Intrinsic Motivation Discussion Please read Chapter 6 and answer questions below (total of 200+ words)Part 1: What is Motivation and how does it affect employee performance? Would motivation always results in high performance? Why or why not?Part 2: What is the difference between extrinsic and intrinsic motivation? Provide an example of each type.Once you are done, please send me the file and I will send you one of my classmates’ post for you to reply. (3+ sentences) CHAPTER 6
The Nature of Work Motivation
Outline
Overview
What Is Work Motivation?
Need Theory
Expectancy Theory
Equity Theory
Organizational Justice Theory
Summary
Exercises in Understanding and Managing
Organizational Behavior
Learning Objectives
After studying this chapter, you should be able to:
● Appreciate why motivation is of central importance
in organizations and the difference between intrinsic and extrinsic motivation.
● Understand what we can learn about motivation
from need theories.
● Describe why expectancy, valence, and instrumen-
tality are of central importance for work motivation.
● Appreciate the importance of equity and the dangers
of inequity.
● Understand why organizational justice is so impor-
tant and how to promote it.
HIGH MOTIVATION
AT ENTERPRISE
RENT-A-CAR
John Raedle
Getty Images, Inc – Liaison
Opening Case
Enterprise has achieved an enviable track record of success by
motivating and rewarding its employees.
How can managers motivate
employees to provide
excellent customer service?
Founded in 1957 by Jack Taylor as a very small auto leasing business, Enterprise Rent-A-Car is
the biggest car rental company in North America with over 65,000 employees and over $12
billion in revenues.1 With over 6,900 locations in the United States, the United Kingdom,
Canada, Germany, and Ireland, Enterprise is one of the largest employees of new college
graduates in the United States.2 Enterprise hires over 7,000 entry-level employees each year.3
In spite of the fact that starting salaries tends to be a bit on the low side and the work can be
hard (e.g., several years ago, four assistant managers sued the company because they
thought they should have received overtime pay), Enterprise has been ranked among the best
50 companies for new college graduates to start their careers by BusinessWeek magazine.4
Enterprise excels at motivating employees to provide excellent service to customers.5
Almost all entry-level employees complete Enterprise’s Management Training Program.6 This
program teaches new employees all aspects of Enterprise’s business and how to provide
excellent customer service. During an initial four-day training session, new management
trainees learn about Enterprise’s culture. After this session, they work in a branch office from
between 8 and 12 months where they learn everything about the company’s business from
washing cars to negotiating with body shops to helping customers. During this training, the
importance of high quality customer service is instilled in them and they learn how they can
personally provide excellent customer service which boosts their confidence levels.7
Those who do well in the program are promoted to the position of management assistant
after about a year. Management assistants who perform well are promoted to the position of
assistant branch managers which includes being responsible for supervising and mentoring
employees. Assistant branch managers who perform well can receive promotions to become
branch managers. Branch managers are responsible for all branch activities including managing
employees, customer service, and the rental car fleet as well as the branch’s financial
performance. Once branch managers have approximately five years experience managing a
branch, they often move on to management positions at headquarters or become an area
manager who oversees all the branches in a specific geographic area.8
Essentially, all new hires are trained in all aspects of the business including the provision
of excellent customer service. As they learn and progress, they are given increasing levels of
empowerment and responsibility and the opportunity to advance in the company. All of
these factors contribute to very high levels of motivation. Patrick Farrell, vice president
of communication describes this process as follows, “What’s unique about our company is
that everyone came up through the same system, from the CEOs on down . . . 100% of our
operations personnel started as management trainees.”9 In fact, the current President and
Chief Operating Officer of Enterprise Rent-A-Car, Pamela Nicholson, started her career with
the company in 1981 as a management trainee.10
Besides motivating high performance and excellent customer service through training
and promotional opportunities, Enterprise also motivates employees with financial
incentives. Each individual branch is viewed as a profit center and the managers overseeing
155
156
PART 1 • INDIVIDUALS IN ORGANIZATIONS
the branch have autonomy and responsibility for all aspects of its performance including its
financial performance as if it were their own franchise or small business.11 Branch employees
who are at the rank of assistant manager or higher receive incentive compensation such that
their monthly pay depends upon the profitability of their branch. At higher levels such as the
branch manager level, incentive pay depends upon the profitability of the region a manager
oversees. Essentially, managers at all levels know that their own pay is linked to the
performance and profitability of the parts of the business for which they have responsibility.
Importantly, managers have autonomy to make decisions that affect their branches and
regions such as decisions regarding buying and selling cars or opening new branches.12
Above all else, Enterprise prides itself on excellent customer service and has been ranked
on BusinessWeek magazine’s list of “Customer Service Champs.”13 For example, Enterprise
picks up customers who need to rent cars from their workplaces or homes and after they return
their rental cars, drops them off where they need to go. Enterprise monitors how well branches
are doing in terms of the provision of excellent customer service with the Enterprise Service
Quality Index (ESQi).14 For the ESQi, phone calls are made to about one out of every 15
Enterprise customers to find out how they were treated when they rented a car at Enterprise,
how satisfied they were with the experience, and if they would rent a car again from Enterprise.
Branch and unit managers can determine how well they are doing by comparing their
branches’ or units’ scores to the overall scores for the company. When their scores fall short,
managers can take steps to improve the quality of the service provided in their branch or unit.15
Enterprise also motivates its employees through its philanthropic activities and initiatives
to protect the natural environment.16 The Enterprise Rent-A-Car Foundation has committed
$50 million to plant 50 million treats in public forests over a 50 year period; its 5 millionth
tree was planted in 2010.17 The Foundation also provides support to communities in which
Enterprise operates. This support can range from supporting centers for troubled youths and
teens to funding multimillion dollar research projects.18 Enterprise has the largest fleet of
fuel-efficient cars of all rental car companies which includes thousands of hybrid electric cars
and tens of thousands of cars that run on fuel which is 15 percent gasoline and 85 percent
ethanol (E85).19 Andrew Taylor, son of the founder of Enterprise and its current CEO and
Chairman, indicates that “We’re not going to be able to save the world . . . but we think we
can have an effect on the space where we play every day as a business. And we think that’s
what our customers and especially our employees want us to do.”20
In sum, Enterprise motivates its employees in multiple ways and these employees, in
turn, satisfy Enterprise’s customers which makes for a winning combination.21
Overview
As the Enterprise Rent-A-Car case suggests, motivating employees to make important contributions to their jobs can have a profound impact on organizational effectiveness. Motivation is
central to understanding and managing organizational behavior because it explains why people
behave as they do in organizations.22 Just as your own motivation determines how many classes
you take, how hard you study for exams, and the amount of time and effort you spend on
research projects, similarly, motivation determines how hard members in an organization will
work to help achieve its goals. Motivation explains, for example, why one employee wants and
tries to do a good job while another employee with the same abilities couldn’t care less.
Motivation also explains why some students strive for A’s and study much harder than others,
who are content with maintaining a solid B average.
In this chapter, we examine work motivation. We focus on the important distinctions between motivation and performance and between intrinsic and extrinsic motivation. We discuss
several specific theories of work motivation: need theory, expectancy theory, equity theory, and
organizational justice theory. Each theory seeks to explain why people behave as they do in organizations and suggests ways of increasing employee motivation and performance. An understanding of motivation is of utmost importance for organizational effectiveness. Managers need
CHAPTER 6 • THE NATURE OF WORK MOTIVATION
157
to ensure that employees choose to act in ways that help the organization achieve its goals and
avoid behaving in ways that hinder the pursuit of organizational objectives.
What Is Work Motivation?
WORK MOTIVATION
The psychological forces that
determine the direction of a person’s behavior in an organization,
a person’s level of effort, and a
person’s level of persistence.
Motivation is a frequently used but poorly understood term. Over 140 definitions have been
provided over the years,23 and noted scholars of work motivation have said that trying to
define motivation often gives them “a severe stomachache.”24 This remark may be a bit of an
exaggeration, but it underscores the need to get a firm grasp on what motivation is before we
try to understand its role in understanding and managing organizational behavior.
Motivation is important because it explains why employees behave as they do. Work motivation can be defined as the psychological forces within a person that determine the direction of
that person’s behavior in an organization, effort level, and persistence in the face of obstacles.25
Because motivation involves psychological forces within a person, many of the topics that we
cover in prior chapters are relevant to understanding motivation: personality and ability (Chapter 2);
values, attitudes, and moods (Chapter 3); and perception and attribution (Chapter 4).
The three key elements of work motivation are direction of behavior, level of effort, and
level of persistence (see Exhibit 6.1).
Direction of Behavior
Which behaviors does a person choose to perform? On any job, there are many behaviors (some
appropriate, some inappropriate) that the jobholder can engage in. Direction of behavior refers to
the behavior employees choose to perform from the many potential behaviors they could perform.
If a stockbroker in an investment banking firm illegally manipulates stock prices, if managers advance their own careers at the expense of their subordinates, or if an engineer convinces skeptical
superiors to change the design specifications of a new product in order to lower production
costs—all of these actions reflect behaviors these employees chose to perform.
As the examples illustrate, employees can be motivated in functional ways that help an organization achieve its goals or in dysfunctional ways that hinder an organization from achieving
its goals. In looking at motivation, managers want to ensure that the direction of their subordinates’ behavior is functional for the organization. They want employees to be motivated to come
to work on time, perform their assigned tasks dependably, come up with good ideas, and help
others. They do not want employees to come to work late, ignore rules concerning health and
safety, or pay lip service to quality.
EXHIBIT 6.1
Elements of Work Motivation
Element
Definition
Example
Direction of behavior
Which behaviors does a person choose
to perform in an organization?
Level of effort
How hard does a person work to
perform a chosen behavior?
Level of persistence
When faced with obstacles, roadblocks,
and stone walls, how hard does a
person keep trying to perform a
chosen behavior successfully?
Does an engineer take the time and effort to
convince skeptical superiors of the need to
change the design specifications for a new
product to lower production costs?
Does an engineer prepare a report outlining
problems with the original specifications, or
does the engineer casually mention the issue
when he or she bumps into a supervisor in
the hall and hope that the supervisor will take
the advice on faith?
When the supervisor disagrees with the
engineer and indicates that a change in
specifications is a waste of time, does the
engineer persist in trying to get the change
implemented or give up despite his or her
strong belief in the need for a change?
PART 1 • INDIVIDUALS IN ORGANIZATIONS
Starbucks is a model of
employee learning, ownership,
and motivation. Even part-time
Starbucks employees, or
“partners,” as they are called,
get stock options, full health
care benefits, and extensive
training.
Doug KanterGetty Images, Inc – Bloomberg News
158
Level of Effort
How hard does a person work to perform a chosen behavior? It is not enough for an organization to
motivate employees to perform desired functional behaviors; the organization must also motivate
them to work hard at these behaviors. If, for example, an engineer decides to try to convince skeptical superiors of the need for design changes, the engineer’s level of motivation determines the
lengths to which he or she will go to convince them. Does the engineer just mention the need for the
change in casual conversation, or does he or she prepare a detailed report outlining the problems
with the original specifications and describing the new, cost-saving specifications that are needed?
Level of Persistence
When faced with obstacles, roadblocks, and stone walls, how hard does a person keep trying to
perform a chosen behavior successfully? Suppose the engineer’s supervisor indicates that a
change in specifications is a waste of time. Does the engineer persist in trying to get the change
implemented or give up even though he or she strongly believes it’s necessary? Likewise, if a
factory employee’s machine breaks down, does the employee simply stop working and wait for
someone to come along to fix it, or does the employee try to fix the machine or at least alert others about the problem?
The Distinction Between Motivation and Performance
Because motivation determines what employees do and how hard and diligently they do it, you
might think that an employee’s motivation to do a job is the same as the employee’s job performance. In fact, motivation and performance, though often confused by employees and managers
alike, are two distinct aspects of behavior in an organization. Performance is an evaluation of the
results of a person’s behavior: It involves determining how well or poorly a person has accomplished a task or done a job.26 Motivation is only one factor among many that contributes to an employee’s job performance. The performance of a screenwriter for a television series, for example, is
the extent to which viewers find his scripts to be informative, entertaining, and engaging. Similarly,
a research scientist’s performance is the extent to which her research advances knowledge, and a
physician’s performance is the extent to which he provides high-quality care to patients.
What is the relationship between motivation and performance? All else being equal, one
would expect a highly motivated screenwriter to write better scripts than those written by a
poorly motivated screenwriter.27 All else, however, is not always equal because so many other
factors affect performance—factors such as personality and ability (see Chapter 2), the difficulty
of the task, the availability of resources, working conditions, and chance or luck. A screenwriter
who is highly creative, for example, may quickly turn out high-quality scripts, even though his
or her motivation to do so is not high. And a physician in Somalia who is highly motivated to
provide high-quality medical care may have difficultly providing it due to inadequate facilities
or a lack of supplies.
CHAPTER 6 • THE NATURE OF WORK MOTIVATION
159
In summary, because motivation is only one of several factors that can affect performance, a
high level of motivation does not always result in a high level of performance. Conversely, high
performance does not necessarily imply that motivation is high: Employees with low motivation
may perform at a high level if they have a great deal of ability. Managers have to be careful not
to automatically attribute the cause of low performance to a lack of motivation or the cause of
high performance to high motivation (see Chapter 4). If they incorrectly assume that low performance stems from low motivation, managers may overlook the real cause of a performance
problem (such as inadequate training or a lack of resources) and fail to take appropriate actions
to rectify the situation. Similarly, if managers assume that employees who perform at a high
level are highly motivated, they may inadvertently fail to take advantage of the talents of exceptionally capable employees: if employees perform at a high level when their motivation levels
are low, they may be capable of making truly exceptional contributions to the organization if
managers devote their efforts to boosting their motivation.
Intrinsic and Extrinsic Motivation
Another distinction important to a discussion of motivation is the difference between the intrinsic and extrinsic sources of work motivation. Intrinsically motivated work behavior is behavior performed for its own sake; the source of motivation actually comes from performing the
behavior itself, in other words.28 A professional violinist who relishes playing in an orchestra
regardless of relatively low pay and a millionaire CEO who repeatedly puts in 12-hour days because she enjoys her work are both intrinsically motivated. Employees who are intrinsically
motivated often remark that their work gives them a sense of accomplishment and achievement
or that they feel that they are doing something worthwhile. For young professionals in China,
learning and having the opportunity to develop new skills on the job are important sources of
intrinsic motivation. After surveying Chinese managers, Grace Cheng, the managing director
of Korn Ferry’s search firm in Beijing, concluded that “money is a less important reason to
change jobs than the potential to grow . . . ”29 Some people, like environmental designer
William McDonough, are intrinsically motivated by protecting the natural environment.30
Extrinsically motivated work behavior is behavior performed to acquire material or social
rewards or to avoid punishment.31 The behavior is performed not for its own sake but rather for
its consequences. The operant conditioning theory of learning discussed in Chapter 5 essentially
deals with how consequences (positive and negative reinforcers and punishment) can be used to
generate extrinsically motivated behavior. Examples of rewards that may be a source of extrinsic
motivation include pay, praise, and status (discussed in detail in Chapter 8).
An employee can be extrinsically motivated, intrinsically motivated, or both.32 When
employees are primarily extrinsically motivated and doing the work itself is not a source of
motivation, it is especially important for an organization and its managers to make a clear connection between the behaviors the organization wants employees to perform and the outcomes
or rewards employees want.
INTRINSICALLY MOTIVATED
WORK BEHAVIOR
Behavior performed for …
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