Reading: Lesson 2 - Motivation and Change Management

3.2.A - Motivation and Change Management

1. MOTIVATION THEORIES

1. Think of the days when you are excited to get up and go to school or work. You enjoy the day and work hard. Time seems to move faster than usual. Compare that to the days when it is impossible to get up and you dread going to work or school. The day seems to go on forever, and you don’t seem to be able to get anything done.
   
2. In the same way, you probably can identify teachers, coaches, or business-people for whom you enjoy working and who seem to be able to encourage your best efforts. You also know others whom you would prefer to avoid and for whom it is a struggle to perform well. What causes the differences?
   
3. You learned earlier that intrinsic and extrinsic factors motivate people to act in certain ways. Psychologists have developed theories about what factors motivate people to behave as they do. Managers can influence employees to behave in ways that help achieve company goals by understanding and applying theories of motivation.

2. MASLOW’S HIERARCHY OF NEEDS

1. Abraham Maslow described motivation in terms of a hierarchy of needs. The first level is physiological needs, followed by security, social, esteem, and self-actualization needs. Physiological needs are things required to sustain life, such as food and shelter. Security needs involve making sure you and those you care about are safe and free from harm. Social needs include the need to belong, to interact with others, to have friends, and to love and be loved. Esteem needs include the desire for recognition and respect from others. Finally, self-actualization is the need to grow emotionally and intellectually, to be creative, and to achieve your full potential.
   
2. According to the theory, people seek to satisfy these needs in order, from lowest to highest. If a lower-level need is not satisfied, a person will have little motivation related to higher levels. For example, starving people will be more motivated to find food than to be concerned about friendships. But once people have reasonably satisfied their physiological and security needs, the need for social interaction will have more influence on their behavior. Applying Maslow’s theory, managers can influence employee behavior by recognizing the levels of the hierarchy that are currently most important to an employee and then using things such as job assignments, praise and support, and financial rewards that best meet those needs.
   

3. MCCLELLAND’S ACHIEVEMENT MOTIVATION

1. Whereas Maslow’s theory is based on a set of needs common to all people, David McClelland believed that people are influenced most strongly by one of three specific needs: the need for achievement, the need for affiliation, and the need for power.
   
2. McClelland suggested that people with a high achievement need take personal responsibility for their own work, set personal goals, and want immediate feedback on their work. People with a strong affiliation need are concerned about their relationships with others and work to get along well and fit in with a group. Finally, those with a strong power need want to influence and control others and to be responsible for a group’s activities. You can probably think of people who fit into each of these three need classifications.
   
3. Managers who follow McClelland’s theory recognize that various jobs provide greater or fewer opportunities for achievement, affiliation, or power. Managers working with individuals who have a high achievement need should provide opportunities for them to make decisions and control their own work. When managers see a high affiliation need in their employees, they should assign them to group projects and teams. These employees will respond well if socializing opportunities are provided. Finally, people with a high need for power will work best when given the opportunity to be project leaders or to be involved in planning and decision making. McClelland’s theory suggests that the strength of the three needs can be changed over time with careful development.
   

4. HERZBERG’S TWO-FACTOR THEORY 

1. A third important motivation theory was developed by Frederick Herzberg. He conducted studies of employees to identify what satisfied and dissatisfied them in their work. His research resulted in the identification of two distinct groups of factors related to motivation. Therefore his theory is known as the two-factor theory.
   
2. Herzberg called one group hygiene factors. Hygiene factors are job factors that dissatisfy when absent but do not contribute to satisfaction when they are present. Examples of hygiene factors are the amount of pay and fringe benefits, working conditions, rules, and the amount and type of supervision. For example, a good company-sponsored health care plan will not motivate employees to do a better job. But the lack of a good health plan could cause employees to be dissatisfied with their jobs.
   
3. Herzberg called the second group motivators. Motivators are factors that increase job satisfaction. The people whom Herzberg studied were motivated by factors such as challenging work, recognition, achievement, accomplishment, increased responsibility, and personal development.
   
4. The interesting part of Herzberg’s theory is that the two types of factors and their results are separate from each other. In other words, hygiene factors can create dissatisfaction but cannot improve satisfaction. For example, people can be dissatisfied with the level of their pay and fringe benefits, but pay increases will not increase satisfaction very much or for any length of time. So, providing hygiene factors, such as pay increases and better working conditions, will only prevent employees from being dissatisfied. It will not motivate employees to perform at a higher level for more than a short time.
   
5. On the other hand, motivators increase satisfaction. To stimulate workers to higher achievement, managers should provide motivators such as opportunities for interesting work, greater individual control and responsibility, and recognition for good work.
   
6. Managers are often surprised by Herzberg’s studies. It is easy to believe that a pay increase will motivate employees to perform better. However, people are often dissatisfied when they compare their pay to that of others, or they believe they are worth more than they are currently being paid. Factors such as fair pay, flexible work hours, and good fringe benefits can keep people from being dissatisfied but seldom are the major reason people are motivated to perform well.
   

5. CHANGE MANAGEMENT

1. The only thing that seems certain in business is change. Global competition, downsizing, mergers, and many other organizational changes affect workers and their jobs. People are not always comfortable with change. Consider changes you have experienced. Examples could include moving, changing schools, meeting new people, or adapting to a new way of doing things. How did you react to the change? When it appears that things will be different, those affected by the change are likely to be very concerned.
   
2. When people’s jobs are threatened, when they are uncertain about how a change will affect them, or when they do not trust those responsible for planning the change, they will probably resist the change. They are likely to be more resistant when change occurs suddenly, when they are not prepared, or when they don’t understand the reasons for the change.
   
3. To implement organizational change, managers must work to reduce that resistance and to make change as comfortable as possible for the employees affected. Careful planning that involves the people affected will make the transition smoother, and employees will be more likely to support the change. The steps in an effective change appear in the Figure below. 
   

   
   

4. Whenever possible, managers should not move too quickly to make changes. They must be certain that change is needed and that the organization will be better off as a result of the change. Then they should follow a careful procedure to gather information, identify and study alternatives, and determine the consequences of change. A well-considered plan will help to assure the best results and will give confidence to those most affected by the change. Taking a bit more time to plan will save time and reduce problems later.
   

5. Sometimes managers believe it is best not to say anything to employees about possible changes until they are ready to take action. They believe that early information will raise unnecessary concerns and misunderstanding. People who study the change process recognize that it is almost impossible to conceal information about pending changes. Based on informal communication and limited information, rumors and misinformation will spread. If people are surprised by a change or believe they have been misled, the result is usually more damaging to the organization than the result of early, direct communications.
   

6. Managers who have previously established open communications with employees are in the best position to communicate with them about possible changes. Because change occurs frequently in business, employees who are used to regular communications with their managers will not be surprised by information about potential changes, even if the changes may appear to be negative. Regular, open, two-way communications between managers and employees are part of an effective change process.
   

7. People are more likely to support changes when they have been involved in planning. Managers must recognize that employees can be a good source of ideas for effective solutions and ways to make changes. Most effective change processes involve the people who will be affected in gathering information, considering alternatives, and testing solutions. It is usually not possible to involve everyone in all parts of the change process or to use a majority vote to decide on a change. However, employees will be more supportive when they know their voices will be heard and that they have input into plans that result in change. Managers need to respect and seek the input of employees. Sometimes managers say they want employees’ ideas but then ignore their input. That will frustrate employees and make them reluctant to participate in the future. Managers must make it clear that not every idea contributed by an employee can be implemented but will be carefully considered in the planning process.
   

8. Change in business does not just happen. New products, new technology, or redesigned jobs require people to prepare. Usually, that means information and training. As plans for change develop, managers must determine who will be affected and what new knowledge and skills those employees will need. Then managers should implement informational meetings and training programs to prepare employees for the required changes. Many companies have had to reduce the number of employees through downsizing. That type of change is very difficult for managers to implement and employees to accept. Some companies try to help the people who will no longer have jobs by offering training for other positions available in the company or to develop skills that will help them get jobs with another company.
   

9. How willing are you to make a change if you are uncertain of the result? When people believe they will receive support from their organization, they are more willing to accept changes. All changes involve some amount of risk, and organizations cannot guarantee success. However, managers need to assure employees that there is support available to help them adjust to the change. The support can take many forms, such as allowing employees time to adjust to change. Managers may provide more feedback on employee performance and be less critical of mistakes early in the new process. Counseling, training, additional information, and advice from employees who have already experienced the change are other methods of support.
   

10. Sometimes changes have negative effects on employees that cannot be avoided. Jobs may be eliminated or restructured. Employees may have to deal with major job changes that can require reduction in pay, different working conditions, additional training, or a move to another location. Support is especially needed under these circumstances. Employees who lose their jobs need time to adjust. Companies may provide full or partial salary for several weeks or months (known as severance pay) while the people affected look for new jobs. The companies may identify open positions in the organization and help employees retrain or relocate. They can give preference to those employees when new positions open. Many companies now provide personal and career counseling, help with job-seeking skills, and even pay for employment services for employees who are terminated due to change.