1 Chapter 2 Fundamentals of Motivation

2 Learning Objectives Describe the two sides of motivation: movement and motive. Identify the five basic needs in Maslow’s need hierarchy. Describe the two-factor theory of motivation and explain its relevance to the practicing manager. Discuss expectancy theory, noting how both valence and expectancy theory influence motivation force. Explain the value of money, employee satisfaction, incentives, and recognition in the motivation process.

3 What is Motivation? Motivation is a psychological drive that directs a person toward an objective Motives are the “whys” of behavior

4 Figure 2.2 Maslow’s Need Hierarchy When Physiological Needs are Dominant Physiological Safety Social Esteem Self-actualization (Low) Need Strength (High)

5 Figure 2.3 Need Mix When Physiological and Safety Needs Have the Highest Strength Need Strength Physiological Safety Social Esteem Self- actualization

6 Figure 2.4 Need Mix When Social Needs Have the Highest Strength Self-actualization Esteem Social Safety Physiological Need Strength

7 Figure 2.5 Need Mix When Esteem and Self- Actualization Needs Have the Highest Strength Physiological Safety Social Esteem Self-actualization Need Strength

8 Table 2.1 The Two-Factor Theory Hygiene Factors (Environment) Motivators (Work Itself) Salary Technical supervision Working conditions Company policies & Administration Interpersonal relations Recognition Advancement Possibility of growth Achievement Work itself

9 Figure 2.6 The Result When Hygiene Factors are Not Satisfied Performance as a Percentage of Capacity 80 Percent When Hygiene Factors Are Satisfied 60 Percent When Hygiene Factors Are Not Satisfied

10 Figure 2.6 The Result When Hygiene Factors are Not Satisfied Performance as a Percentage of Capacity 80 Percent After Motivators 80 Percent Before Motivators Before After 100% Before Motivators 100 % After Motivators

11 Figure 2.8 Motivation-Hygiene and Maslow Self-actualization Esteem Social Safety Physiological Work itself Achievement Possibility of growth Advancement Recognition Status Interpersonal relations Technical supervision Job security Working conditions Personal life Salary Maslow’s Need Hierarchy Herzberg’s Two-Factor Theory Motivators Hygiene Factors

12 Figure 2.9 Motivation-Hygiene Continua Dissatisfaction No Hygiene No Satisfaction No Motivators No Satisfaction Hygiene Satisfaction Motivators

13 Expectancy Theory Expectancy theory holds that motivation is equal to valence times expectancy Valence is a person’s preference for a particular outcome Expectancy is the perceived probability that a specific outcome will follow a specific act

14 Figure 2.10 Range of an Individual’s Valence Strong Preference for the Outcome Indifference Toward the Outcome Strong Dislike for the Outcome

15 Key Terms in the Chapter Motivation Motives Physiological needs Power Self-actualization Competence Safety needs Social needs Esteem needs Prestige Motivators Expectancy theory Valence Expectancy Achievement High achievers Need mix Hygiene factors Motivational force Equity theory Broad banding