McShane CdnOB10 IM05
McShane CdnOB10 IM05
Chapter 5:
Foundations of
Employee Motivation
Prepared by:
Steven L. McShane (Curtin University and
University of Victoria)
Kevin Tasa (York University)
Sandra L. Steen (University of Regina)
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Chapter 5: Foundations of Employee Motivation
Foundations of
5 Employee Motivation
LEARNING OBJECTIVES
CHAPTER GLOSSARY
distributive justice — perceived fairness in the goal setting — the process of motivating employees and
individual’s ratio of outcomes to contributions relative clarifying their role perceptions by establishing
to a comparison other’s ratio of outcomes to performance objectives
contributions
Maslow’s needs hierarchy theory — a motivation theory
drives — hardwired characteristics of the brain that of needs arranged in a hierarchy, whereby people are
correct deficiencies or maintain an internal equilibrium motivated to fulfill a higher need as a lower one
by producing emotions to energize individuals becomes gratified
employee engagement — individual emotional and need for achievement (nAch) — a learned need in which
cognitive motivation, particularly a focused, intense, people want to accomplish reasonably challenging goals
persistent, and purposive effort toward work-related and desire unambiguous feedback and recognition for
goals their success
equity theory — a theory explaining how people need for affiliation (nAff) — a learned need in which
develop perceptions of fairness in the distribution and people seek approval from others, conform to their
exchange of resources wishes and expectations, and avoid conflict and
confrontation
expectancy theory — a motivation theory based on the
idea that work effort is directed toward behaviours that need for power (nPow) — a learned need in which
people believe will lead to desired outcomes people want to control environment, including people
and material resources, to benefit either themselves
four-drive theory — a motivation theory based on the
(personalized power) or others (socialized power)
innate drives to acquire, bond, comprehend, and defend
that incorporates both emotions and rationality needs — Goal-directed forces that people experience
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Chapter 5: Foundations of Employee Motivation
organizational behaviour modification — a theory that social cognitive theory — a theory that explains how
explains employee behaviour in terms of the antecedent learning and motivation occur by observing and
conditions and consequences of that behaviour modelling others as well as by anticipating the
consequences of our behaviour
procedural justice — perceived fairness of the
procedures used to decide the distribution of resources strengths-based coaching — a positive organizational
behaviour approach to coaching and feedback that
self-reinforcement — reinforcement that occurs when an
focuses on building and leveraging the employee’s
employee has control over a reinforcer but doesn’t
strengths rather than trying to correct his or her
“take” it until completing a self-set goal
weaknesses
5-3 Summarize Maslow’s needs hierarchy, and discuss the employee motivation implications of intrinsic versus
extrinsic motivation, learned needs theory, and four-drive theory.
Maslow’s needs hierarchy groups needs into a hierarchy of five levels and states that the lowest needs are initially
most important but higher needs become more important as the lower ones are satisfied. Although very popular,
the theory lacks research support because it wrongly assumes that everyone has the same hierarchy. The emerging
evidence suggests that needs hierarchies vary from one person to the next according to their personal values.
Intrinsic motivation refers to motivation controlled by the individual and experienced from the activity itself,
whereas extrinsic motivation occurs when people are motivated to receive something that is beyond their personal
control for instrumental reasons. Intrinsic motivation is anchored in the innate drives for competence and
autonomy. Some research suggests that extrinsic motivators may reduce existing intrinsic motivation to some
extent and under some conditions, but the effect is often minimal.
McClelland’s learned needs theory argues that needs can be strengthened through learning. The three needs
studied in this respect are need for achievement, need for power, and need for affiliation. Four-drive theory states
that everyone has four innate drives—the drives to acquire, bond, comprehend, and defend. These drives activate
emotions that people regulate through a skill set that considers social norms, past experience, and personal values.
The main recommendation from four-drive theory is to ensure that individual jobs and workplaces provide a
balanced opportunity to fulfil the four drives.
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Chapter 5: Foundations of Employee Motivation
5-4 Discuss the expectancy theory model, including its practical implications.
Expectancy theory states that work effort is determined by the perception that effort will result in a particular level
of performance (E-to-P expectancy), the perception that a specific behaviour or performance level will lead to
specific outcomes (P-to-O expectancy), and the valences that the person feels for those outcomes. The E-to-P
expectancy increases by improving the employee’s ability and confidence to perform the job. The P-to-O
expectancy increases by measuring performance accurately, distributing higher rewards to better performers, and
showing employees that rewards are performance-based. Outcome valences increase by finding out what
employees want and using these resources as rewards..
5-5 Outline organizational behaviour modification (OB Mod) and social cognitive theory, and explain their
relevance to employee motivation.
Organizational behaviour modification takes the behaviourist view that the environment teaches people to alter
their behaviour so they maximize positive consequences and minimize adverse consequences. Antecedents are
environmental stimuli that provoke (not necessarily cause) behaviour. Consequences are events following
behaviour that influence its future occurrence. Consequences include positive reinforcement, punishment, negative
reinforcement, and extinction. The schedules of reinforcement also influence behaviour..
Social cognitive theory states that much learning and motivation occurs by observing and modelling others as well
as by anticipating the consequences of our behaviour. It suggests that people typically infer (rather than only
directly experience) cause-effect relationships, anticipate the consequences of their actions, develop self-efficacy in
performing behaviour, exercise personal control over their behaviour, and reflect on their direct experiences. The
theory emphasizes self-regulation of individual behaviour, including self-reinforcement, which is the tendency of
people to reward and punish themselves as a consequence of their actions.
5-7 Summarize equity theory and describe ways to improve procedural justice.
Organizational justice consists of distributive justice (perceived fairness in the outcomes we receive relative to our
contributions and the outcomes and contributions of others) and procedural justice (fairness of the procedures
used to decide the distribution of resources). Equity theory has four elements: outcome/input ratio, comparison
other, equity evaluation, and consequences of inequity. The theory also explains what people are motivated to do
when they feel inequitably treated. Companies need to consider not only equity of the distribution of resources but
also fairness in the process of making resource allocation decisions.
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Chapter 5: Foundations of Employee Motivation
LECTURE OUTLINE
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Chapter 5: Foundations of Employee Motivation
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Chapter 5: Foundations of Employee Motivation
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Chapter 5: Foundations of Employee Motivation
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Chapter 5: Foundations of Employee Motivation
• Drive to bond
➡ Drive to form social relationships and mutual caring commitments with others
➡ Explains why people form social identities (align self-concept with social groups)
• Drive to comprehend
➡ Drive to satisfy our curiosity, to know and understand ourselves and our environment
➡ Related to higher order needs of growth and self-actualization
• Drive to defend
➡ Drive to protect ourselves physically and socially; ‘fight or flight’ response; includes
defending our relationships and belief systems
➡ Drive to defend is always reactive (triggered by threat), not proactive
Three drives are proactive—they are regularly activated by our perceptions to seek
fulfillment — only drive to defend is reactive
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Chapter 5: Foundations of Employee Motivation
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Chapter 5: Foundations of Employee Motivation
ABCs of OB Mod
Central objective of behaviour modification is to change behaviour (B) by managing its
antecedents (A) and consequences (C)
Antecedents
• Events preceding the behaviour
• Informs employees that a particular action will produce specific consequences – e.g.
sound signalling that an email has arrived
Behaviour
• What people say or do — e.g. checking phone for a new message
Consequences
• Events following behaviour that influences its future occurrence — e.g. see new
message with valuable information3
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Chapter 5: Foundations of Employee Motivation
Extinction
• Occurs when the target behaviour decreases because no consequence follows it
➡ Example: performance declines when manager stops congratulating employees for
their good work
Negative reinforcement
• Occurs when removing or avoiding a consequence increases or maintains the
frequency or future probability of a behaviour
• Example: manager stops criticizing employee when poor performance improves
• Desired consequence for reducing undesirable behaviours
Evaluating OB Mod
Everyone uses organizational behaviour modification principles in one form or another to
influence behaviour of others
• In every day life (e.g. thank people for a job well done)
• Formal company programs to reduce absenteeism, improve task performance,
improve safety, etc.
Behaviour modification problems/limitations include:
• Reward inflation — the reinforcer is eventually considered an entitlement
• Variable ratio schedule may be viewed as gambling or too random
• Ignores relevance of cognitive processes in learning
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Chapter 5: Foundations of Employee Motivation
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Chapter 5: Foundations of Employee Motivation
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Chapter 5: Foundations of Employee Motivation
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Chapter 5: Foundations of Employee Motivation
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Chapter 5: Foundations of Employee Motivation
1. Four-drive theory is conceptually different from Maslow’s needs hierarchy in several ways. Describe these
differences. At the same time, needs are based on drives, so the four drives should parallel the seven needs that
Maslow identified (five in the hierarchy and two additional needs). Map Maslow’s needs onto the four drives
in four-drive theory.
While the four-drive theory reinforces the view of Maslow in that needs are part of human nature, it differs
significantly in some respects. First, it avoids the assumption that everyone has the same needs hierarchy. Second,
it considers how situation, personal experience, and cultural values affect one’s intensity, persistence and direction
of effort. Third, four-drive theory clarifies the role of emotional intelligence with respect to motivation and
behaviour. For example, employees with high EI are more sensitive to their own drives and are better able to avoid
impulsive behaviour.
We can map Maslow’s needs onto the four-drive theory in the following ways:
Drive to acquire. This is the drive to seek, take control, and retain objects and personal experiences. This relates to
physiological needs (Maslow), and forms the foundation for competition and our need for esteem (Maslow).
Drive to bond. This is the drive to form social relationships and develop mutual caring commitments with others.
This relates to belongingness (Maslow).
Drive to comprehend. This is the drive to satisfy one’s curiosity, to know and understand ourselves and the
environment around us. This relates to the higher order needs of self-actualization (Maslow).
Drive to defend. This is the drive to protect ourselves physically and socially. This is the only drive that is reactive
because it is triggered by a threat. Because the drive to defend also extends beyond protecting our physical self to
defending our relationships and our belief systems it relates to safety, belongingness and esteem needs (Maslow).
2. Learned needs theory states that needs can be strengthened or weakened. How might a company strengthen the
achievement needs of its management team?
McClelland’s learned needs theory identifies three needs. However, this question requires students to focus only
on the need for achievement (nAch) and describe how it could be strengthened or weakened.
This theory holds that needs can be strengthened via reinforcement, learning and social conditions. Therefore,
answers should address these strategies in a workplace setting. A typical answer might refer to the following:
Behavioural modelling. The company could develop programs where trainees observe and interact with high
achievers and try to replicate their actions and thoughts. For instance, they might be asked to write achievement-
oriented stories, or practice achievement-oriented behaviours in various types of simulations. They could also
learn how to develop and write achievement plans.
Provide Reinforcement. Employees could be encouraged to engage in more achievement–oriented behaviours, if the
company provided a combination of effective feedback and recognition. The recognition could take the form of
awards, praise, time off, or monetary incentives.
Social conditions. The company could strive to establish an environment where achievement is celebrated by
supervisors, and peers. Some group incentives for reaching certain objectives could be put in place to socialize
success among groups of employees.
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Chapter 5: Foundations of Employee Motivation
3. Everyone who works as an electronic game developer has extrinsic sources of motivation, and most also
experience some degree of intrinsic motivation. Considering the dynamics of extrinsic and intrinsic motivation,
what should companies in this industry do to ensure that their game developers are highly motivated at work?
There are essentially two elements of this question: (a) how to motivate intrinsically and extrinsically, and (b) how
to incorporate extrinsic motivation that does not undermine intrinsic motivation.
Intrinsic motivation. Intrinsic motivation occurs when people seek need fulfillment from doing the activity itself. In
particular, people are intrinsically motivated when they perform tasks that fulfill their drive for competence and
autonomy. In practice, this suggests that companies need to design jobs in which employees can fully apply their
skills and experience freedom from external controls (micromanaging bosses, highly formalized rules). The next
chapter of this book discusses autonomy as a job design strategy. Fulfilling the drive competence calls for jobs that
are aligned with the employees skills and knowledge, make full use of those abilities, and possibly stretch the
employee’s capabilities so competencies are further developed.
Extrinsic motivation. There are many ways to motivate employees extrinsically. Specific financial rewards as well as
general reward strategies are discussed in the next chapter. However, students should discuss the fact that extrinsic
motivation takes three forms: (1) Clearly external sources (bonus, micromanaging boss), (2) Internal pressure
associated with external sources, and (3) Internalized value of external sources. All three can motivate and have
value in specific situations. However, students might argue that the third option has particular appeal because it
feels more internally sourced and therefore is less likely to diminish the person’s feeling of autonomy. The
employee identifies with the company’s values, and therefore feels motivated more from an internal source—
personal values—then from external sources. In contrast, the other two forms of extrinsic motivation seem to be
further removed from the individual and therefore feel less controllable.
Effect of extrinsic motivation and intrinsic motivation. The other issue in discussing extrinsic motivation has to do with
what effect a specific extrinsic motivator has on intrinsic motivation. The textbook identifies a few characteristics of
extrinsic motivators that are unlikely to have an adverse effect on intrinsic motivation. These include extrinsic
motivators that are unexpected, such as a surprise bonus, that have low value relative to the intrinsic motivator,
and that are not contingent on specific behaviour. Students should identify specific rewards and other forms of
extrinsic motivation that satisfy some or all of these characteristics.
4. You just closed a deal with an organizational client, and this helps you in achieving your target that was set for
you by the unit. Use expectancy theory to discuss how the events that will follow may increase your motivation
and engagement.
Expectancy theory states that work effort is directed towards behaviours that people believe will lead to desired
outcomes. It has three components. First, the belief that effort will lead to a level of performance, which you did
believe and were able to achieve in this case. Second, the belief that performance will lead to outcomes and third,
that outcomes will lead to anticipated satisfaction. Now, if there were some rewards/ outcomes that you expected
as a result of this performance and they were actually realized, it will increase your motivation. However, beyond
the realization of outcomes, it is also important how much the outcomes matter to you, all of these things together
will increase your engagement and motivation.
5. Describe a situation in which you used organizational behaviour modification to motivate someone’s
behaviour. What specifically did you do? What was the result?
Ask students to reflect on their experiences with influencing the behaviour of another person. It may be helpful to
encourage students to first describe the behaviour they wanted to see demonstrated before considering what they
did to influence the demonstration of the behaviour. The following steps are intended to serve as an outline:
Ask students to specifically describe what behaviour they wanted the person to demonstrate.
Identify events or cues they used to increase the likelihood the desired behaviour would be demonstrated.
Identify what they did after the desired behaviour was demonstrated to influence its future occurrence.
Discussion may also be generated regarding how they felt about the use of behaviour modification as a means to
influence behaviour.
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Chapter 5: Foundations of Employee Motivation
Also, ask student to discuss how they felt about the use of behaviour modification as a means to influence
behaviour. Some students may suggest we all practice behaviour modification on a day-to-day basis (e.g. when we
thank someone for something they did, however, encourage students to raise issues about ethical concerns – e.g. is
behaviour modification a form of manipulation?)
6. Using your knowledge of the characteristics of effective goals, establish two meaningful goals related to your
performance in this class.
The textbook identifies seven characteristics of effective goals. The goals that students describe should reflect each
of these features.
Specific. A student’s goal statement should state what needs to be accomplished, how it should be accomplished,
and where, when, and with whom it should be accomplished. For example, a goal regarding completion of weekly
assignments not only identifies the task (weekly assignment in this course) and when the assignment should be
completed (e.g., three days before due). It should also state the way it should be completed and, if relevant, where
and with whom it should be completed.
Measurable. Goals need to be measurable. Therefore, a meaningful student goal would state the deadline and, if
relevant, the performance level (e.g., grade received, number of words submitted).
Achievable. Student goals must be achievable, meaning that they are sufficiently but not overly challenging. Goals
that are too challenging undermine motivation when students realize that they are very difficult.
Relevant. Goals need to be relevant and within the student’s control. For example, goals regarding the work that
students perform (e.g., completing assignments, speaking in class, engaging in specific study habits) are more
relevant than are final outcome goals (course grades).
Time-framed. Goals should specify when the objective should be completed or when it will be assessed for
comparison against a standard. This partly relates to the characteristics of specific goals, but is more focused on the
“when” the task should be conducted and completed, as well as milestone deadlines for longer-term goals.
Exciting. Goals tend to be more effective when students are committed to them, not just compliant. What makes
students committed to and excited by course goals is a matter of debate as well as personal preference. Students
would be more committed to goals where they have been involved in them, so assignments where students
individually (and possibly collectively) participate in the assignment design might be more engaging. Student
commitment also tends to be higher in goals that are challenging, but not impossible.
Reviewed. The motivational value of goal setting depends on students receiving feedback about reaching those
goals. Most student goals can satisfy this characteristic because their class work is measurable without instructor
feedback. For example, students can quickly see from learning management systems how long before the weekly
assignment deadline they submitted the weekly assignment.
Students should be encouraged to write draft goal statements and then working in small groups or with a partner,
refine their draft goal statements to ensure each of the above criteria are applied. Each goal statement needs to
reflect the individual’s current level of performance, knowledge etc. For example, what is challenging to one
student may be unattainable, therefore, de-motivating to another student.
7. Most people think they are “worth more” than they are paid. Furthermore, most employees seem to feel that
they exhibit better leadership skills and interpersonal skills than others. Please comment on this human
tendency.
When people believe that the “average is above average,” this is not rational! When people in general are asked if
they are “better than average” or below average, most tend to respond better than average. That isn’t statistically
likely! We also know from studies of the military, that 90% of all U.S. Officers in the U.S. Navy think they’re in the
top l0% of U.S. Officers in the U.S. Navy. Again…statistically improbable! The same holds true for leadership skills
and interpersonal skills. Try finding anyone who thinks they’re below average in interpersonal skills. This
nonrational nature of human nature is what makes many motivational programs demoralizing, and
dehumanizing. If I think I’m better than average and you’re trying to “correct” my self-concept of myself, the likely
outcome will be one of frustration and most likely disbelief. When we extrapolate to the realm of pay, equity
theory is spot on in explaining why we think we’re underpaid vis-à-vis our coworkers.
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Chapter 5: Foundations of Employee Motivation
8. A large organization has hired you as a consultant to identify day-to-day activities for middle managers to
minimize distributive and procedural injustice. The company explains that employees have complained about
distributive injustice because they have different opinions about what is fair (equity, equality, need) and what
outcomes and inputs have the greatest value. They also experience procedural injustice due to misperceptions
and differing expectations. Given these ambiguities, what would you recommend to middle managers?
The answer to this question can be partitioned into distributive and procedural justice practices for middle
managers:
Distributive justice
The incident states that employees have different opinions about preferences for equity, equality, and need, as well
as weightings of inputs and outcomes. These are common problems, and can be difficult to resolve. The first step
for managers is to gain a clearer understanding of what employees expect and value. To the extent that they have
any control over distribution of resources (pay, job assignments, work schedules, etc), managers can look for
preferred distributive criteria. For instance, if most employees recognize that vacation schedules should be based
on equality (rather than equity or need), then managers can set up these schedules around equality (such as
random selection when several people want the same time off). It is also important that managers point out the
criteria used for these resource allocations so they are clearly understood.
Regarding the different weighting of inputs and outcomes, managers face a difficult situation due to the many
possible inputs and outcomes combined with the many employees. One action is to make it clear what criteria are
used for resources -- e.g. the better desks/offices are assigned to employee based on their seniority. These criteria
should have some support among employees and need to be justified to the others. Managers also need to
understand individual employee outcome preferences so if there discretion in resource allocation, managers can
give employees more outcomes that they desire. This potentially maintains equity with other employees, yet the
recipient employee might even feel overrewarded because the outcome is more valuable to that person.
Procedural Justice
Procedural justice is somewhat less complicated to apply because research has identified several distinct factors
that seem to universally improve perceptions of procedural justice.
Voice: A top priority is to give the employee who feels underrewarded an opportunity to speak up about his or her
complaint and offer reasons for that complaint.
Perceived as unbiased: Managers must not create incidents that others may misinterpret as favoritism (e.g.,
spending more time with one or two employees; seeing some employees socially after work).
Rely on complete and accurate information: Managers need to demonstrate that they are familiar with all aspects
of the decision, including counterarguments to their decision.
Apply existing policies consistently: Managers need avoid exceptions to the rules of resource and reward
allocation.
Listen to all sides of the dispute: Managers need to demonstrate attentiveness to everyone who presents their
complaint, comments, or ideas regarding the issue.
Explain the decision: Managers need to have sound explanations for their decision, and actively communicate
those explanations to employees affected by the decision.
Right to appeal the decision to a higher authority: Employees who feel underrewarded by the decision should
have the right to provide their arguments to a higher authority (e.g. the boss’s boss) if the above actions do not
resolve the matter.
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Chapter 5: Foundations of Employee Motivation
This case presents an interview with Harry, an employee who works in an undisclosed job. The interviewer asks Harry
various questions about his job, all of which are directed toward elements of the expectancy theory of motivation
model. The information provided enables students to figure out whether Harry is motivated to engage in a high or
lower level of effort in his job.
1. Use the expectancy theory model to predict Harry’s motivation to achieve high or “just acceptable”
performance in his job. Identify and discuss the factors that influence this motivation.
Students should work systematically through the three elements of expectancy theory to reach their conclusion.
The effort level scores are calculated by multiplying each valence by the appropriate P-to-O expectancy, summing
these results, then multiplying the sum by the E-to-P expectancy. The results are presented in the exhibit below.
The result is that Harry is more motivated to exert lower effort (.816) than high effort (.621). (Note: These values
become .896 and .711 if the valence of a secure job is 1.0 rather than 0.9.)
Effort-to-performance expectancy: All expectancies are probabilities ranging from 0 (no chance) to 1.0 (definitely
will occur). The E-to-P expectancies are explicitly stated in the interview.
Performance-to-outcome expectancy: Students need to first identify the outcomes that are salient to Harry. these
seem to be job security, raise, promotion, and ridicule from coworkers. The P-to-O expectancies for raise and
promotion are explicitly stated in the interview. The expectancy for ridicule in the high performance level is also
explicitly stated. The expectancy of ridicule at the acceptable performance level is zero based on Harry’s statement
that “the guys will not make fun of me” in that situation. A secure job has a 1.0 expectancy at both performance
levels because Harry “is certain” to keep his job if he works at either a high or acceptable performance level.
Valences: Valence scores can have any equally-balanced range. the exhibit below uses the range from -1.0 to +1.0.
Secure job is “the most important” outcome, so it is assigned at least the same value as ridicule (either .9 or 1.0).
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Chapter 5: Foundations of Employee Motivation
Note: Barrie Super Subs is a revision of the famous “Perfect Pizzeria” case, which was written by
J. E. Dittrich and R. A. Zawacki
Case Synopsis
Barrie Super subs is one of 300 restaurant franchises throughout Canada. Each operation has one manager, an assistant
manager, a few team leaders, and many employees (mostly college and high school students who work part-time).
Most employees earn minimum wage. The manager and assistant manager get a bonus for keeping costs (wastage)
low. However, employees raise costs by helping themselves to food, and by adding free ingredients when their friends
order a sub. Errors are supposed to be charged back to the responsible employee, but the night manager rarely writes
this up because of peer pressure. The manager tried to reduce costs by reducing the free food allowance only to staff
who work six or more hours (most work less than that minimum), but employees still nibbled whenever the manager
or assistant manager were away. Morale fell and about 20 percent of the experienced employees quit. The high
turnover and resulting staff shortages required the manager and assistant manager to train staff and spend more time
in food preparation (even managers are discouraged from working directly in food preparation.) Accidental wastage
increased due to new staff but deliberate wastage feel while the managers were in the restaurant. However, wastage
increased again almost immediately after the managers stepped back from daily operations. In response, the manager
withdrew all free food allowance and threatened to fire employee caught consuming food.
1. What symptom(s) in this case suggest that something has gone wrong?
An important symptom in this case is the high level of food wastage. Another symptom is morale problems—
employees were dissatisfied with their benefits (no more free food allowed) and management. Similarly, Barrie
Super Subs suffered from poor employee-management relations. Valued employees quit. The restaurant
experienced lower productivity due to inexperienced staff hired and staff shortages. Employee loyalty is very low.
Employees remain with the company only due to continuance commitment.
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Chapter 5: Foundations of Employee Motivation
(b) Team Leaders Lacked Motivation (and Power). The team leaders were given legitimate power by the company,
but employees continued to eat and give away food because they had more power over the team leader
(ostracizing at school) than the team leader had over them. (NOTE: This part of the case analysis refers to concepts
beyond this chapter. See Chapter 10.)
Team leaders had legitimate power, but they did not exercise that authority due to risk of ostracism and, in any,
event, employees would reject the team leader’s legitimate power over them. Team leaders also had reward and
coercive power in the sense that they could write up reports of food wastage. However, these team leaders were
not motivated to complete these reports. Expectancy theory provides an explanation for this lack of motivation.
The night manager apparently didn’t receive any positive outcomes for writing up the reports. No bonus went to
the night manager. The night manager received less than minimum wage, so it is likely that he/she felt inequitably
rewarded (and possibly took some food). There were also negative outcomes of writing up these reports. The night
manager valued friendships with some of the employees, so relatedness needs would be threatened if reports were
written.
(c) Ineffective Use of Punishment. This case clearly illustrates the problems with using punishment to change
behaviour, as well as the negative consequences of punishment. The manager’s use of punishment strained
relations with employees.
Another problem with punishment that is apparent in this case is that it is usually effective only when the source
of punishment is nearby. As soon as the manager stopped working in the restaurant, employees returned to their
previous behaviours of eating and giving away free food.
This case also illustrates the problem that punishment creates disruptions in work activities. When employees quit
due to the punishment imposed (reduced food allowance), the managers had to help with food preparation and
train several new people. These disruptions undoubtedly disrupted the work flow and increased production costs.
3. What actions should Barrie Super Subs’ managers take to correct these problems?
One of the most important solutions to this case is to link food costs (wastage) to employee rewards. This would
motivate employees to reduce wastage and may reduce their feelings of inequity. One strategy would be to offer
employees a bonus on their salary based on achieving specific food wastage targets for the month. Depending on
the ability to collect more precise food wastage data, the manager might link food wastage on each work shift to
bonuses for employees working on that shift. This would further strengthen the P-to-O expectancy.
Bonuses would probably work best because employees feel they are underpaid relative to others in the labor
market. However, the manager might first consider using token awards, such as t-shirts, free subs coupons, or
challenges with rewards donated to the school or some other cause.
It will be difficult to completely restore employee-manager relations in the short term. However, some actions may
help. The manager would certainly improve relations somewhat by removing threats and other sources of
punishment, except for the most serious infractions.
The manager might also let employees create special social events on or off the job. This will be difficult at first, but
employees might support them over time. (Example: the restaurant might have a special “top hat” sub promotion
in which employees wear top hats and customers get a discount for one premium sub with the works.) This would
improve social bonding among employees and improve loyalty to the company. It might improve employee-
management relations if the manager gets involved and is seen as the source of these positive events.
Barrie Super Subs needs to rethink the team leader’s role. It is evident that peer pressure and lack of legitimate
power (in the eyes of employees) makes the team leader’s duties of reporting food wastage unreasonable.
Fortunately, the performance-based reward system for employees should minimize the need for supervision. If the
team leader needs a power base for his/her role, then the company should consider hiring people who are not as
closely associated with the employees, are paid more, receive a bonus for minimizing food wastage, and have
reward and coercive power over employees.
Page 5-!23
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Chapter 5: Foundations of Employee Motivation
Purpose
This class exercise is designed to help students understand employee needs in the workplace.
Step 1: The table below lists in alphabetical order 16 characteristics of the job or work environment. Working alone, use
the far-left column to rank-order the importance of these characteristics to you personally. Write in “1” beside the most
important characteristic, “2” for the second most important, and so on through to “16” for the least important
characteristic on this list.
Step 2: Identify any three (3) of these work attributes that you believe have the largest score differences between
Generation Y (Millennial) male and female postsecondary students (i.e., those born in 1980 or after). Indicate which
gender you think identifies that attribute as more important.
Step 3: Students are assigned to teams, where they compare each other’s rank-order results as well as perceived gender
differences in needs. Note reasons for the largest variations in rankings and be prepared to discuss these reasons with
the entire class. Students should pay close attention to different needs, self-concepts, and various forms of diversity
(culture, profession, age, etc.) within your class to identify possible explanations for any variation of results across
students.
Step 4: The instructor will provide results of a recent large-scale survey of Generation-Y/Millennial postsecondary
students (i.e. born in 1980 or after). When these results are presented, identify the reasons for any noticeable differences
in the class. Relate the differences to your understanding of the emerging view of employee needs and drives in work
settings. For gender differences, discuss reasons why men and women might differ on these work-related attributes.
Comments to Instructors
The items in this activity were surveyed to 23,413 millennial undergraduate university students. The results of that
large-scale study are shown in the table on the next page. The table shows the mean scores (on a five-point scale) for
each of the 16 job attributes as well as the ranking of those attributes.
These results provide some insight regarding how Millennials think about employee needs. However, we hasten to
point out that the study also found significant differences by gender, visible minority status, grade point average, work
experience, and year of study. The differences by visible minority status were mainly that those in the visible minority
group gave much higher importance to strong commitment to employment diversity. As for gender differences,
women gave much higher ratings compared to men for strong commitment to employment diversity, opportunities to
have a social impact, commitment to social responsibility, good health and benefits plan, and opportunities to have a
personal impact.
This exercise is a popular activity because students have varied opinions regarding which needs are most important.
Also, students are often surprised to see how different their priorities are to each other. Part of this activity involves
linking the specific items in the exhibit to employee needs. This should be done with both Maslow’s needs hierarchy
and with the four drives in four-drive theory. For example, students should notice that “good people to work with”
relates to the drive to bond (four drive theory) and need for affiliation (Maslow’s hierarchy).
Page 5-!24
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Chapter 5: Foundations of Employee Motivation
Based on information in: Ng, E., Schweitzer, L., & Lyons, S. (2010). New Generation, Great Expectations: A Field Study
of the Millennial Generation. Journal of Business and Psychology, 25(2), 281-292.
Page 5-!25
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Chapter 5: Foundations of Employee Motivation
Many human needs are called "deficiency" needs because they become active only when unfilled. However, Abraham
Maslow popularized the idea that people also have "growth needs," which continue to motivate even when
temporarily satiated. Growth needs are associated with self-actualization and intrinsic motivation. People vary in their
growth need strength, which is evident from the type of work they prefer.
The questions in this instrument give students a chance to say just what it is about a job that is most important to them.
For each question, two different kinds of jobs are briefly described. Students are asked to indicate which of the two jobs
they personally would prefer if they had to make a choice between them. In answering each question, students should
assume that everything else about the jobs is the same. Students should pay attention only to the characteristics
actually listed.
This well-known scale estimates growth need strength. Growth need strength indicates the strength of a person’s
growth needs, including self-esteem, personal achievement, self-actualization. Although organizational behaviour
scholars now doubt that people have a pre-determined needs hierarchy, it is well established that we do have growth
needs.
Scores on the Growth Need Strength Scale range from 12 to 60. Higher scores indicate a higher growth need strength
(i.e stronger growth needs). A total score below 30 indicates a relatively low growth need strength, whereas a score
above 42 indicates a relatively high growth need strength.
Score Interpretation
43-60
High growth needs
30-42
Moderate growth needs
Page 5-!26
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Chapter 5: Foundations of Employee Motivation
Everyone has the same innate drives, but these drives produce different need strengths due to each person's
socialization and personality. David McClelland particularly examined three learned needs, two of which are
measured in this self-assessment.
This instrument measures two of the three “learned needs” studied by David McClelland: achievement striving and
need for social approval.
Achievement Striving
This scale, formally called “achievement striving,” estimates the extent to which you are motivated to take on and
achieve challenging personal goals. It includes a desire to perform better than others and to reach one’s potential. This
scale ranges from 0 to 28. How high or low is your need for achievement? The ideal would be to compare your score
with the collective results of other students in your class. Otherwise, the following exhibit offers a rough set of norms
for you to compare your score on this scale.
Score Interpretation
24-28
High level of need for achievement
18-23
Above average level of need for achievement
12-17
Average level of need for achievement
6-11
Below average level of need for achievement
Page 5-!27
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Chapter 5: Foundations of Employee Motivation
The need for social approval scale estimates the extent to which your are motivated to seek favorable evaluation from
others. Based on the drive to bond, the need for social approval is a secondary need in that people vary in this need
based on their self-concept, values, personality, and possibly socialized social norms. This scale ranges from 0 to 32.
How high or low is your need for social approval? The ideal would be to compare your score with the collective results
of other students in your class. Otherwise, the following exhibit offers a rough set of norms for you to compare your
score on this scale.
Score Interpretation
28-32
High level of need for social approval
20-27
Above average level of social approval
12-19
Average level of need for social approval
6-11
Below average level of need for social approval
Page 5-!28
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Chapter 5: Foundations of Employee Motivation
Everyone sets goals for themselves, but people differ in the nature of those goals. This self-assessment estimates your
goal orientation. To complete this instrument, read the 12 statements and indicate how accurately each statement
describes you.
People have different mindsets about goals, particularly in achievement situations. Some view goals as challenges that
assist learning. Others see goals as demonstrations of one’s competence. Still others view goals as threatening one’s
image if their are not achieved. This goal orientation instrument estimates your level on each of these three
orientations: learning goal orientation, performance goal orientation, and avoidance goal orientation.
People with a learning goal orientation view striving for goals as the way to acquire new skills and knowledge. This
orientation views ability as malleable—something that can be developed through effort and persistence (such as trying
to achieve challenging goals). Effort is the means through which new competencies are developed.
Score Interpretation
22 to 28
High learning goal orientation
11 to 21
Moderate learning goal orientation
People with a performance goal orientation view goals as means to demonstrate (rather than develop) their skills and
knowledge. They view their ability as fixed, so goals test that ability rather than develop it. People with a performance
goal orientation are particularly motivated to seek out goals that they can achieve rather than goals with a high
probability of failure.
Score Interpretation
22 to 28
High performance goal orientation
11 to 21
Moderate performance goal orientation
Page 5-!29
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Chapter 5: Foundations of Employee Motivation
Avoidance goal orientation is similar to performance goal orientation in that people with this orientation view goals as
means to demonstrate (rather than develop) their skills and knowledge. However, an avoidance goal orientation is
apparent by the motivation to avoid goals that might produce a negative judgment by others. In other words, people
with this orientation pay attention to goals that might cause them to fail, whereas people with a performance goal
orientation are motivated to seek out goals that demonstrate their success.
Score Interpretation
22 to 28
High avoidance goal orientation
11 to 21
Moderate avoidance goal orientation
Page 5-!30
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Chapter 5: Foundations of Employee Motivation
Correcting feelings of inequity is one of the most powerful motivating forces in the workplace. But people react
differently to equitable and inequitable situations based on their equity sensitivity. Equity sensitivity refers to a
person’s outcome/input preferences and reaction to various outcome/input ratios when compared to other people.
Students are asked to read each statement in this instrument and indicate the degree to which they personally agree or
disagree with that statement. This instrument has 16 statements.
The Equity Sensitivity scale ranges from 16 to 80. People are divided into three categories, depending on their score
along this scale. The three categories are:
“Entitleds” (16-37 points on the scale) feel more comfortable receiving proportionately more than others. They might
accept having the same outcome/input ratio as others, but would prefer receiving more than others performing the
same work.
“Equity sensitives” (38-58 points on the scale) fit the standard equity theory model. They want their outcome/input
ratio to be equal to the outcome/input ratio of the comparison other. As the ratios become different, equity sensitives
feel an uncomfortable tension.
“Benevolents” (59-80 points on the scale) are tolerant of situations where they are underrewarded. They might still
prefer equal outcome/input ratios to the comparison other, but don’t mind if others receive more than they do for the
same inputs.
Score Interpretation
59 to 80
Benevolents
38 to 58
Equity sensitives
16 to 37 Entitleds
Page 5-!31
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