Encouraging and managing performance

8 important questions on Encouraging and managing performance

Alderfer's needs for the workplace (ERG theory)

- Existence: need for survival and physical well-being
- Relatedness: need for interpersonal relationships
- Growth: need for personal development

McCelland's theory of motivation

Three main needs:
- Achievement: drive to do well and succeed
- Affiliation: drive to build friendly, cooperative relations
- Power: want influence over others (prestige and control)

How we are motivated to perform

Equity
Expectancy
Goals
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Equity reasons of motivation

Engage in social comparisons, compare own effort with effort of others, expect to be rewarded fairly

Expectancy reasons of motivation

3 perceptions that people have about outcomes which predict their efforts:
- Valence: how desirable the end result is for the individual
- Instrumentality: perceived chance of effort resulting in desired outcome
- Expectancy: extent of efforts that will achieve level of performance needed for outcome

Goals reasons of motivation

Moderators on goals-performance relationship:
- Commitment (more commitment -> more effort)
- Feedback (to adjust efforts)
- Complexity (goal-setting less effect with complex tasks)
- Satisfaction: achieving goals -> satisfaction -> commitment in future

Function of performance management

- Providing feedback on good and bad performance
- Differentiating between employees
- Identifying areas for development and training

Managing by objectives (MBO)

Company wide-goals that descend down to individuals to align efforts, 4 elements:
- Goals have to be specific
- Commitment
- Time-specific
- Feedback

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