Defining Motivation The result of the interaction between the individual and the situation. The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal – specifically, an organizational goal. Three key elements: Intensity – how hard a person tries Direction – effort that is channeled toward, and consistent with, organizational goals Persistence – how long a person can maintain effort (c) 2008 Prentice-Hall, All rights reserved.

Framework of Motivation (c) 2008 Prentice-Hall, All rights reserved.

Motivational Models (c) 2008 Prentice-Hall, All rights reserved.

Early Theories of Motivation Maslow’s Hierarchy of Needs Theory McGregor’s Theory X and Theory Y Herzberg’s Two-Factor Theory McClelland’s Theory of Needs (c) 2008 Prentice-Hall, All rights reserved.

Maslow’s Hierarchy of Needs There is a hierarchy of five needs. As each need is substantially satisfied, the next need becomes dominant. Assumptions Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied Must move in hierarchical order Self-Actualization Esteem Social Safety Physiological Higher Order Internal Lower Order External (c) 2008 Prentice-Hall, All rights reserved.

Maslow’s hierarchy of needs — Dominance of Physiological Needs Salf-Actulization Needs Dominant In The Need Structure (c) 2008 Prentice-Hall, All rights reserved.

A reworking of Maslow to fit empirical research. Alderfer’s ERG Theory A reworking of Maslow to fit empirical research. Three groups of core needs: Existence (Maslow: physiological and safety) Relatedness (Maslow: social and status) Growth (Maslow: esteem and self-actualization) Removed the hierarchical assumption Can be motivated by all three at once Popular, but not accurate, theory E G R (c) 2008 Prentice-Hall, All rights reserved.

McGregor’s Theory X and Theory Y Two distinct views of human beings: Theory X (basically negative) and Theory Y (positive). Managers used a set of assumptions based on their view The assumptions molded their behavior toward employees No empirical evidence to support this theory. Theory X Workers have little ambition Dislike work Avoid responsibility Theory Y Workers are self-directed Enjoy work Accept responsibility (c) 2008 Prentice-Hall, All rights reserved.

HERZBERG’S 2 FACTOR THEORY Frederick Herzberg and his associates conducted a research study based on interviews of 200 engineers and accountants working in 11 different firms in U.S.A Findings revealed that there are 2 sets of factors which affect satisfaction or dissatisfaction of employees. 1. Dissatisfiers or hygiene factors or maintenance factors 2. Motivational factors or satisfiers (c) 2008 Prentice-Hall, All rights reserved.

Herzberg’s Two-Factor Theory Key Point: Satisfaction and dissatisfaction are not opposites but separate constructs Hygiene Factors Motivators Achievement Responsibility Growth Work Conditions Salary Company Policies Extrinsic and Related to Dissatisfaction Intrinsic and Related to Satisfaction (c) 2008 Prentice-Hall, All rights reserved.

Herzberg’s Hygienes and Motivators (c) 2008 Prentice-Hall, All rights reserved.

Essence of the two-factor Theory (c) 2008 Prentice-Hall, All rights reserved.

Difference Between Maslow’s and Herzberg’s Motivational Theories Issue Maslow Herzberg Type of theory Descriptive Prescriptive The satisfaction Unsatisfied needs energise Needs cause performance performance relationship behaviour, this behaviour causes performance Need order Hierarchy of needs No hierarchy Effect of pay Pay is a motivator if it satisfies Pay is not a motivator needs Effect of needs All needs are motivators at various Only some needs are times motivators View of motivation Macro view – deals with all aspects Micro view – deals primarily of existence with work related motivation Worker level Relevant for all workers Probably more relevant to white – collar and professional workers (c) 2008 Prentice-Hall, All rights reserved.

Criticisms of Two-Factor Theory Herzberg says that hygiene factors must be met to remove dissatisfaction. If motivators are given, then satisfaction can occur. Herzberg is limited by his procedure Participants had self-serving bias Reliability of raters questioned Bias or errors of observation No overall measure of satisfaction was used Herzberg assumed, but didn’t research, a strong relationship between satisfaction and productivity (c) 2008 Prentice-Hall, All rights reserved.

McClelland’s Three Needs Theory Need for Achievement (nAch) The drive to excel, to achieve in relation to a set of standards, to strive to succeed Need for Power (nPow) The need to make others behave in a way that they would not have behaved otherwise Need for Affiliation (nAff) The desire for friendly and close interpersonal relationships People have varying levels of each of the three needs. Hard to measure (c) 2008 Prentice-Hall, All rights reserved.

Performance Predictions for High nAch People with a high need for achievement are likely to: Prefer to undertake activities with a 50/50 chance of success, avoiding very low- or high-risk situations Be motivated in jobs that offer high degree of personal responsibility, feedback, and moderate risk Not necessarily make good managers – too personal a focus. Most good general managers do NOT have a high nAch Need high level of nPow and low nAff for managerial success Good research support, but it is not a very practical theory (c) 2008 Prentice-Hall, All rights reserved.

Contemporary Theo ries of Motivation Equity Theory Expectancy Theory Goal-Setting Theory Management by Objectives (MBO) (c) 2008 Prentice-Hall, All rights reserved.

Adams’ Equity Theory Employees compare their ratios of outcomes-to- inputs of relevant others. When ratios are equal: state of equity exists – there is no tension as the situation is considered fair When ratios are unequal: tension exists due to unfairness Underrewarded states cause anger Overrewarded states cause guilt Tension motivates people to act to bring their situation into equity (c) 2008 Prentice-Hall, All rights reserved.

Equity Theory’s “Relevant Others” Can be four different situations: Self-Inside The person’s experience in a different job in the same organization Self-Outside The person’s experience in a different job in a different organization Other-Inside Another individual or group within the organization Other-Outside Another individual or group outside of the organization (c) 2008 Prentice-Hall, All rights reserved.

Reactions to Inequity Employee behaviors to create equity: Change inputs (slack off) Change outcomes (increase output) Distort/change perceptions of self Distort/change perceptions of others Choose a different referent person Leave the field (quit the job) Propositions relating to inequitable pay: Paid by time: Overrewarded employees produce more Underrewarded employees produce less with low quality Paid by quality: Overrewarded employees give higher quality Underrewarded employees make more of low quality (c) 2008 Prentice-Hall, All rights reserved.

Justice and Equity Theory Organizational Justice Distributive Justice Fairness of outcome Procedural Justice Fairness of outcome process Interactional Justice Being treated with dignity and respect Overall perception of what is fair in the workplace. (c) 2008 Prentice-Hall, All rights reserved.

Vroom’s Expectancy Theory The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual. Expectancy of performance success Instrumentality of success in getting reward Valuation of the reward in employee’s eyes (c) 2008 Prentice-Hall, All rights reserved.

Implementation: Management by Objectives MBO is a systematic way to utilize goal- setting. Goals must be: Tangible Verifiable Measurable Corporate goals are broken down into smaller, more specific goals at each level of organization. Four common ingredients to MBO programs: Goal specificity Participative decision making Explicit time period Performance feedback (c) 2008 Prentice-Hall, All rights reserved.

Motivational Theories (c) 2008 Prentice-Hall, All rights reserved.

Types of Motivation (c) 2008 Prentice-Hall, All rights reserved.

Intrinsic and Extrinsic Motivation What if the organisations are not ready to unleash the intrinsic motivation of employees? Use contingent rewards and constructive task feedback for developing the feeling of personal competence and stronger self efficacy Utilize the insights from spiritual and positive thinking on work in general and organisational behaviour in specific Encourage more internalization and emotional alignment through managing work culture, socialization and long term rewards

Employee Identifica-tion as a bridge between Extrinsic and Intrinsic motivation

Applications of Motivation Motivation by goal setting: Management by objectives (MBO) MBO is based on the philosophy that the manager and the managed ought to negotiate or collaborate on defining the objectives the employee is to pursue over the next time period. Reward system for high performance: Behaviour modification Rewards systems based on the assumptions that people in positions of authority can be taught to use environmental consequences to stimulate and shape the behaviours of people. Job design affecting work outcomes Job Rotation Job Enlargement Job Enrichment Job Characteristics Model Motivation by empowerment Self Initiated Empowerment Empowerment by Others Empowerment by Managers (c) 2008 Prentice-Hall, All rights reserved.

Job Characteristics Model (c) 2008 Prentice-Hall, All rights reserved.

Framework of ob Mod (c) 2008 Prentice-Hall, All rights reserved.