Chapter 08

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PRINCIPLES OF LEADERSHIP

MOTIVATION & EMPOWERMENT


SPRING 2023
CHAPTER 08
FAREED QURESHI
CHAPTER OBJECTIVES
• Recognize and apply the difference between intrinsic and extrinsic
rewards.
• Motivate others by meeting their higher-level needs.
• Apply needs-based theory of motivation.
• Avoid the disadvantages of “carrot-and-stick” motivation.
• Implement empowerment by providing the five elements of
information, knowledge, discretion, meaning, and rewards.
MOTIVATION
MOTIVATION is the PROCESS used to ALLOCATE
ENERGY to MAXIMIZE the SATISFACTION of NEEDS

• Direction: Which actions we will work on


• Effort: How hard we will work on those actions
• Persistence: How long we will work on those actions
A SIMPLE MODEL OF MOTIVATION

NEEDS BEHAVIORS REWARDS


• Creates desire to • Results in actions to • Satisfy needs:
fulfill needs fulfill needs intrinsic or extrinsic
(money, friendship, rewards
recognition,
achievement

Feedback Reward informs person whether behavior was appropriate and should be used
again
TYPES OF REWARDS
Intrinsic Rewards
• Internal satisfactions a person receives in the process of performing a
particular action
Extrinsic Rewards
• Rewards given by another person, typically a supervisor, such as pay increases
and promotions
System-wide Rewards
• Rewards that apply the same to all people within an organization or within a
specific category or department
EXAMPLES OF INT. & EXT REWARDS

Extrinsic Intrinsic

Individual Large merit increase Feeling of self-


fulfillment

Pride in being part of a


Systemwide Insurance benefits “winning” organization
Needs of People and Motivation Methods
NEEDS OF
PEOPLE
Conventional Leadership
management

Lower needs Higher needs

Carrot and stick Empowerment


(Extrinsic) (Intrinsic)

Growth and
Control people
fulfillment

Adequate effort Best effort


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Maslow’s Hierarchy of Needs
Need Hierarchy Fulfillment on the Job
Self-actualization Needs Opportunities for advancement, autonomy, growth,
creativity
Esteem Needs Recognition, approval, high status, increased
responsibilities
Belongingness Needs Work groups, clients, coworkers, supervisors

Safety Needs Safe work, fringe benefits, job security

Physiological Needs Heat, air, base salary


Herzberg’s Two-Factor Theory
Highly Satisfied
Area of Motivators Motivators
influence level
Satisfaction Achievement of satisfaction
Recognition
Responsibility
Work itself
Personal growth

Neither Satisfied nor


Dissatisfied

Hygiene
Area of Factors Hygiene factors
Work conditions influence level of
Dissatisfaction dissatisfaction
Pay/security
Co. policies
Supervisors
Interpersonal. relationships

Highly Dissatisfied
Acquired Needs Theory
• McClelland’s theory that proposes that certain types of needs are
acquired during an individual’s lifetime
• Three needs most frequently studied:
• Need for achievement
• Need for affiliation
• Need for power
Key Elements of Expectancy Theory
Will putting effort into the task lead to
E > P expectancy (Expectancy)
the desired performance?
Effort Performance

Will high performance lead to the


P > O expectancy (Instrumentality)
desired outcomes?
Performance Rewards

Valence – value of outcomes


(pay, recognition, other rewards)
Are the available outcomes highly
valued?

Motivation
EMPOWERMENT
• Empowerment  Power sharing
• Employees receive information about company performance.
• Employees receive knowledge and skills to contribute to company
goals.
• Employees have the power to make substantive decisions.
• Employees understand the meaning and impact of their jobs.
• Employees are rewarded based on company performance.
THAT’S ALL FOR TODAY!!
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