An Overview of Some of the Popular Management Theorists Theories of Motivation An Overview of Some of the Popular Management Theorists

Alderfer’s ERG Theory Clayton P Alderfer proposed a hierarchy involving three sets of needs: Existence: needs satisfied by such factors as food, air, water, pay, and working conditions. Relatedness: needs satisfied by meaningful social and interpersonal relationships. Growth: needs satisfied by an individual making creative or productive contributions. Tested by Thematic Apperception Test ERG Theory

ERG Theory Relationships Among Frustration, Importance, and Satisfaction of Needs of growth needs Importance of growth needs Satisfaction of growth needs Frustration of relatedness needs Importance of relatedness needs Satisfaction of relatedness needs Frustration of existence needs Importance of existence needs Satisfaction of existence needs 7

Chris Argyris (1923 - Influenced by the humanist approach of Abraham Maslow and the socio-technical process of E. Wight Bakke. Indicated his feelings about how organizations neglected human needs. If treated like a child one will behave like a child – result is organizational mediocrity Chris Argyris Maturity – Immaturity Continuum

Chris Argyris – Personality vs. Organization Certain organizational practices, such as the division of labor, interfere with the development of healthy human personalities. These practices promote immature, not mature behavior. In an attempt to self-actualize, individuals run into the obstacles posed by formal organizations. The result is defensive behaviors, with management reacting by becoming more autocratic or by turning to sugar-coated human relations.

Chris Argyris

Albert Bandura Social Learning Self-efficacy Social Cognitive Albert Bandura proposed a social cognitive theory (social learning theory; self-efficacy theory) which refers to an individual’s belief that they are capable of performing a task. Four ways self efficacy can be increased: Enactive mastery – if you’ve performed task in the past, you can do it again Vicarious modeling – you become more confident because you see someone else do the task Verbal persuasion – you become more confident because someone convinces you that you have the skills necessary to perform task Arousal – if you get “psyched up” then you perform better Social Learning Self-efficacy Social Cognitive

Abraham Maslow Hierarchy of Needs Maslow defined human needs as: Physiological: the need for food, drink, shelter, and relief from pain. Safety and security: the need for freedom from threat; the security from threatening events or surroundings. Belongingness, social, and love: the need for friendship, affiliation, interaction, and love. Esteem: the need for self-esteem and for respect from others. Self-actualization: the need to fulfill oneself by maximizing the use of abilities, skills, and potential Hierarchy of Needs

Maslow’s Need Hierarchy Maslow’s theory assumes that a person attempts to satisfy the more basic needs before directing behavior toward satisfying upper-level needs. Lower-order needs must be satisfied before a higher-order need begins to control a person’s behavior. A satisfied need ceases to motivate.

Need Hierarchy

David McClelland Proposed Theory of Needs: Need for Achievement (nAch) – drive to excel, to achieve in relation to a set of standards Need for Affiliation (nAff) – the desire for friendly and close interpersonal relationships Need for Power (nPow) – need to make others behave in a way in which they would not have behaved otherwise (to have power over them) nAch nPow nAff

McClelland’s Learned Needs Theory Achievement (n Ach) Affiliation (n Aff) Power (n Pow)

Douglas McGregor (1906-1964) Taught psychology at MIT. At Antioch College, McGregor found that his classroom teaching of human relations did not always work in practice. From these experiences, his ideas evolve and lead him to recognize the influence of assumptions we make about people and our managerial style. Douglas McGregor

Theory X Management is responsible for organizing the elements of productive enterprise – money, materials, equipment, people – in the interest of economic ends. With respect to people, this is a process of directing their efforts, motivating them, controlling their actions, modifying their behavior to fit the needs of the organization. Without this active intervention by management, people would be passive – even resistant – to organizational needs. They must, therefore, be persuaded, rewarded, punished, controlled – their activities must be directed. This is management’s task -- in managing subordinate managers or workers. We often sum it up by saying that management consists of getting things done through other people.

Theory X Behind this conventional theory there are several additional beliefs – less explicit, but widespread: The average man is by nature indolent – he works as little as possible. He lacks ambition, dislikes responsibility, prefers to be led. He is inherently self-centered, indifferent to organizational needs. He is by nature resistant to change. He is gullible, not very bright – the ready dupe of the charlatan and the demagogue.

Theory Y Management is responsible for organizing the elements of productive enterprise – money, materials, equipment, people – in the interest of economic ends. People are not by nature passive or resistant to organizational needs. They have become so as a result of experience in organizations. The motivation, the potential for development, the capacity for assuming responsibility, the readiness to direct behavior toward organizational goals are all present in people. Management does not put them there. It is a responsibility of management to make it possible for people to recognize and develop these human characteristics for themselves. The essential task of management is to arrange organizational conditions and methods of operation so that people can achieve their own goals best by directing their own efforts toward organizational objectives.

Theory X Theory Y Work is inherently distasteful to most people. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. Most people have little capacity for creativity in solving organizational problems. Motivation occurs only at the physiological and safety levels. Most people must be closely controlled and often coerced to achieve organizational objectives. Work is as natural as play, if the conditions are favorable. Self-control is often indispensable in achieving organizational goals. The capacity for creativity in solving organizational problems is widely distributed in the population. Motivation occurs at the social, esteem, and self-actualization levels, as well as physiological and security levels. People can be self-directed and creative at work if properly motivated.

Frederick Herzberg (1923-2000) His research emphasized job enrichment (depth) rather than job enlargement Job context (hygiene factors) – needed to be optimal to prevent job dissatisfaction. These factors (according to Herzberg) did not motivate. Job content (motivators) – factors that did lead to motivation Money (according to Herzberg) could motivate if it was seen as a reward for accomplishment; but if money was given without regard for merit, then it was a hygiene factor. Frederick Herzberg

Motivation and Hygiene Factors ENVIRONMENT MOTIVATORS WHAT THEY DO Policies and Administration Supervision Working Conditions Interpersonal Relations Money, Status, Security Achievement Recognition for Accomplishment Challenging Work Increased Responsibility Growth and Development

Herzberg’s Two-Factor Theory Extrinsic factors Intrinsic factors Factors within the job context: Factors within the job content: Pay Status Working conditions Achievement Increased responsibility Recognition Dissatisfiers Hygiene factors Satisfiers Motivators 8

Traditional and Herzberg Views of Satisfaction - Dissatisfaction I. TRADITIONAL High job dissatisfaction High job satisfaction II. HERZBERG’S TWO-FACTOR VIEW Low job satisfaction High job satisfaction Motivators Feeling of achievement Meaningful work Opportunities for advancement Increased responsibility Recognition Opportunities for growth Low job dissatisfaction High job dissatisfaction Hygienes Pay Status Job security Working conditions Fringe benefits Policies and procedures Interpersonal relations 9

Frederick Herzberg

Motivation and Hygiene Factors THE JOB SURROUNDINGS AND THE HYGIENE FACTORS SUPERVISION WORKING CONDITIONS RESPONSIBILITY ACHIEVEMENT BENEFITS THE JOB ITSELF AND THE MOTIVATOR FACTORS COMPANY POLICY AND ADMINIS- TRATION INTER- PERSONAL RELATION- SHIPS WORK ITSELF RECOGNITION GROWTH ADVANCEMENT SECURITY STATUS SALARY

A Comparison of the Content Theories Maslow (need hierarchy) Self-actualization Esteem Belongingness, social, and love Safety and security Physiological Herzberg (two-factor theory) The work itself Responsibility Advancement Growth Achievement Recognition Quality of inter- personal relations among peers, with supervisors, with subordinates Job security Working conditions Salary Alderfer Growth Relatedness Existence McClelland Need for achievement power affiliation Higher order needs Motivators Hygiene conditions Basic needs

Work Design Richard Hackman, Edward Lawler, and Greg Oldham’s work extended Herzberg’s notions by adding a situational (it depends…) dimension Key job characteristics Depending on an individual’s “growth-need strength,” these characteristics could be amplified to make the job more meaningful.

Job Characteristics Model Critical Psychological State Outcomes (Personal and Work) Core Job Characteristics Skill Variety Task Identity Task Significance Meaningfulness of Work High Internal Work Motivation High Quality Work Performance High Satisfaction with Work Low Absenteeism and Turnover Autonomy Responsibility for Outcomes Feedback About Job Knowledge of Results of Work Employee Growth Need

Motivation: Expectancy Theory Victor Vroom The expectancy theory of Victor Vroom helps explain the choosing process among individuals in terms of the value (valence) of the reward and the expectancy of receiving the reward. Victor Vroom

Expectancy Theory

Expectancy Theory Lyman Porter and Edward Lawler extended Vroom’s work with their model of expectancy.

(Lyman W. Porter – Edward E. Lawler III) Expectancy Theory (Lyman W. Porter – Edward E. Lawler III) Revised Diagram of the Theoretical Model Value of Reward 1 Abilities And Traits 4 Perceived Equitable Rewards 8 Intrinsic Rewards 7A Effort 3 Performance (Accomplishments) 6 Satisfaction 9 Extrinsic Rewards 7B Perceived Effect-Reward Probability 2 Role Perceptions 5 SOURCE: Managerial Attitudes and Performance, 1968, Richard D. Irwin Inc.

Principles of Expectancy Theory V1 = S(V2 x I) The valence associated with various first-level outcomes is a sum of the multiplication of the valences (V2) attached to all second-level outcomes with their respective instrumentalities (I) M = f(V1 x E) Motivation is a multiplicative function of the valence for each first-level outcome (V1) and the perceived expectancy (E) that a given behavior will be followed by a particular first-level outcome P = f(M x A) Performance is considered to be a multiplicative function of motivation (the force) and ability

Process Theories of Motivation: Expectancy Theory (continued) Management practices: Managers need to focus on employee expectations for success. Managers must actively determine which second-level outcomes are important to employees. Managers should link desired second-level outcomes to the organization’s performance goals.

Expectancy Theory Example (probability of performance given effort) Performance outcome (valences x instrumentalities) Instrumentalities (how much performance outcome and second-level outcome are associated Valences of second- level outcomes (in parentheses) 0.6 Day off (6) Finishing budget on time (6.9) Recognition/compliment from boss (3) 1.0 Mention of performance in personnel record (1) 0.3 2.76 0.4 0.2 Day off (6) Finishing budget on required day but after deadline (3.2) Motivation Recognition/compliment from boss (3) 2.24 0.7 0.7 Mention of performance in personnel record (1) -0.1 .20 1.0 0.0 Day off (6) Finishing budget on day after deadline (.20) Recognition/compliment from boss (3) 0.2 Mention of performance in personnel record (1) -0.4

Equity Theory Equity theory is not a new one but focuses on how individuals perceive their reward or pay compared to what others are receiving. Issues of social justice and distributive justice are involved in the theories of Stacy Adams and Elliot Jaques. Elliot Jacques

Process Theories of Motivation: Equity Theory Employees compare their efforts and rewards with those of others in similar work situations. Individuals, who work in exchange for rewards from the organization, are motivated by a desire to be equitably treated at work. Equity exists when employees perceive that the ratios of their inputs (efforts) to their outcomes (rewards) are equivalent to the ratios of other similar employees. Inequity exists when these ratios are not equivalent.

The Equity Theory of Motivation A person (P) with certain inputs (I) and receiving certain outcomes (O) Compares his/her input/outcome ratio to reference person’s (RP) inputs (I) and outcomes (O) OP ORP IP IRP equity = and perceives or OP ORP IP IRP inequity < or OP ORP IP IRP inequity > IP: Inputs of the person OP: Outcomes of the person IRP: Inputs of reference person ORP: Outcomes of reference person 13

Managing Across Cultures Geert Hofstede (1928 - ) describes cultural differences in different countries. Individualism vs. collectivism (group orientation); Power Distance: The level of preference for equality or inequality within groups: Uncertainty avoidance: The preference for risk vs. structure. Masculinity (assertiveness) vs. femininity (tender values). Long term vs. Short term orientation. Geert Hofstede Courtesy of Prof. Hofstede

Last Thoughts …… from Peter Drucker “I would hope that American managers—indeed, managers worldwide—continue to appreciate what I have been saying almost since day one: that management is so much more than exercising rank and privilege; it’s so much more than ‘making deals.’ Management affects people and their lives, both in business and in many other aspects as well. The practice of management deservers our utmost attention; it deserves to be studied”