1. TOPIC 12 – CHAPTER 11 Motivating Employees
BPA10202 / BPK20502

2. Learning Outcomes Define and explain motivation.
Compare and contrast early theories of motivation.
Compare and contrast contemporary theories of motivation.
Discuss current issues in motivating employees.

3. LO1 Define and explain motivation

4. What is Motivation?
Motivation refers to the process by which a person’s efforts are energized, directed, and sustained toward attaining a goal.
Individuals differ in motivational drive and their overall motivation varies from situation to situation.
Motivation has three key elements:
The energy element is a measure of intensity or drive where the quality of the effort is considered along with its intensity.
High levels of effort lead to favorable job performance when the effort is directed toward, and consistent with, organizational goals.
Finally, motivation includes a persistence dimension where employees keep putting forth effort to achieve those goals.

5. LO2 Compare and contrast early theories of motivation

6. early theories of motivation
During the 1950s and 1960s, four theories of motivation were formulated.
They include the hierarchy of needs theory, theories X and Y, the two-factor theory, and the three-needs theory.
It’s important to know these early theories because:
They represent the foundation from which contemporary theories grew
they are still used by practicing managers to explain employee motivation.

7. Maslow’s Hierarchy of Needs

8. Maslow’s Hierarchy of Needs
Abraham Maslow’s Hierarchy of Needs theory, (Exhibit 11-1), is one of the most widely known theories of motivation.
Maslow was a psychologist who proposed that within every person is a hierarchy of five needs:
Physiological needs such as food, drink, shelter, sex, sleep, and other physical requirements
Safety needs such as security and protection from harm as well as assurance that physical needs will continue to be met
Social needs including affection, belongingness, acceptance, and friendship
Esteem needs, which include internal esteem factors such as self-respect, autonomy, and achievement, and external esteem factors such as status, recognition, and attention; and
Self-actualization needs that include growth and achieving one’s potential.

9. Maslow’s Hierarchy of Needs
Maslow argued that each level must be substantially satisfied before the next need becomes dominant; an individual moves up the hierarchy from one level to the next.
Lower-order need are satisfied predominantly externally, while higher-order needs are satisfied internally.
Managers will do things to satisfy employees’ needs.
But remember: Once a need is substantially satisfied, it no longer motivates.
This theory is widely popular among practicing managers probably because it’s easy to understand and intuitive.
However, there is no empirical support provided for theory; other studies could not validate it.

10. McGregor’s Theory X and Theory Y
Douglas McGregor from the MIT Sloan School of Management is best known for proposing two assumptions about human nature: Theory X and Theory Y.
Simply put Theory X is a negative view of people and Theory Y is a positive view.
McGregor believed that Theory Y assumptions should guide management practice and proposed that participation in decision making, responsible and challenging jobs, and good group relations would maximize employee motivation.

11. McGregor’s Theory X and Theory Y
Little ambition
Dislike work
Avoid responsibility
Must be closely controlled
Theory Y:
Enjoy work
Seek and accept responsibility
Exercise self- direction

12. McGregor’s Theory X and Theory Y
Unfortunately, no evidence confirms that either set of assumptions is valid or that being a Theory Y manager is the only way to motivate employees

13. Herzberg’s Two-Factor Theory

14. Herzberg’s Two-Factor Theory
Frederick Herzberg’s two-factor theory (or motivation-hygiene theory) proposes that intrinsic factors are related to job satisfaction while extrinsic factors are associated with job dissatisfaction.
It was popular from the 1960s to the early 1980s, but it’s criticized for being too simplistic.
However, it did influence today’s approach to job design.

15. Herzberg’s Two-Factor Theory
Herzberg wanted to know when people felt exceptionally good (satisfied) or bad (dissatisfied) about their jobs; these findings are shown in Exhibit
He concluded from people’s responses that certain characteristics were consistently related to job satisfaction (as seen on the left side of the exhibit), and other characteristics were related to job dissatisfaction (factors on the right side).
When people feel good about their work, they tend to cite intrinsic factors arising from the job itself, such as achievement, recognition, and responsibility.
But when they are dissatisfied, they tend to cite extrinsic factors arising from the job context, such as company policy, administration, supervision, interpersonal relationships, and working conditions.

16. Herzberg’s Two-Factor Theory
Herzberg also concluded that the traditional view –that the opposite of satisfaction was dissatisfaction–was wrong.
He stated that removing dissatisfying characteristics from a job would not necessarily make that job more satisfying (or motivating).
(Exhibit 11-3) Herzberg proposed that a dual continuum existed: The opposite of “satisfaction” is “no satisfaction” and the opposite of “dissatisfaction” is “no dissatisfaction.”

17. Herzberg’s Two-Factor Theory

18. Herzberg’s Two-Factor Theory
Herzberg believed that the factors that led to job satisfaction were separate and distinct from those that led to job dissatisfaction.
Therefore, managers who sought to eliminate factors that created job dissatisfaction could keep people from being dissatisfied, but this would not necessarily lead to satisfaction and motivation.
To motivate people, Herzberg suggested emphasizing motivators, the intrinsic factors having to do with the job itself.

19. McClelland’s Three-Needs Theory
David McClelland and his associates proposed the three-needs theory, which says three acquired needs are major motives in work.
The need for achievement (nAch), which is the drive to succeed and excel in relation to a set of standards
The need for power (nPow), which is the need to make others behave in a way that they would not behave otherwise, and
The need for affiliation (nAff), which is the desire for friendly and close interpersonal relationships.

20. McClelland’s Three-Needs Theory
A high need to achieve doesn’t necessarily lead to being a good manager because high achievers focus on their own accomplishments while good managers emphasize helping others accomplish their goals.
The other two needs in this theory haven’t been researched as extensively, but the best managers tend to be high in the need for power and low in the need for affiliation.

21. LO3 Compare and contrast contemporary theories of motivation.

22. contemporary theories of motivation
Goal-setting Theory
Job Design Theory
Equity Theory
Expectancy Theory

23. contemporary theories of motivation

24. Goal-Setting Theory
Substantial research support has been established for goal-setting theory, which says that specific goals increase performance and that difficult goals result in higher performance than easy goals.
That means that:
(1) Working toward a goal is a major source of job motivation, and
(2) Specific and challenging goals are superior motivating forces.

25. Goal-Setting Theory
The specificity of the goal itself acts as an internal stimulus.
For instance, when a sales rep commits to making eight sales calls daily, he has a specific goal to try to attain.
Interestingly, setting one’s own goals sometimes elicited superior performance; in other cases, individuals performed better when their manager assigned goals.
However, when employees might resist accepting difficult challenges, participation in goal setting is probably more effective than assigning goals.

26. Goal-Setting Theory
Lastly, people do better if they get feedback on how well they’re progressing toward their goals because it helps identify discrepancies between what they’ve done and what they want to do.

27. Goal-Setting Theory Influences on Job Performance Feedback
Goal commitment
Adequate self-efficacy
National culture

28. Goal-Setting Theory Influences on Job Performance Feedback
All feedback isn’t equally effective.
Self-generated feedback—in which an employee monitors his or her own progress—has been shown to be a more powerful motivator than feedback coming from someone else.
Goal commitment
Goal-setting theory assumes that an individual is committed to the goal.
Goal commitment is most likely when goals are made public, when the individual has an internal locus of control, and when the goals are self-set rather than assigned.

29. Goal-Setting Theory Influences on Job Performance
Adequate self-efficacy
Self-efficacy refers to an individual’s belief that he or she is capable of performing a task.
In difficult situations, people with low self-efficacy are likely to reduce their effort or give up altogether, whereas those with high self-efficacy will try harder to master the challenge.
Also, individuals with high self-efficacy seem to respond to negative feedback with increased effort and motivation, whereas those with low self-efficacy are likely to reduce their effort
National culture

30. Goal-Setting Theory Influences on Job Performance National culture
The value of goal-setting theory also depends on the national culture.
It’s well adapted to North American countries because its main ideas align reasonably well with those cultures.
It assumes that subordinates will be reasonably independent (not a high score on power distance), that people will seek challenging goals (low in uncertainty avoidance), and that performance is considered important by both managers and subordinates (high in assertiveness).
Managers cannot expect goal setting to lead to higher employee performance in countries with cultural characteristics different from these.

31. Job Design Theory
Job design refers to the way tasks are combined to form complete jobs.
Managers should design jobs deliberately and thoughtfully to reflect the demands of the changing environment, the organization’s technology, and employees’ skills, abilities, and preferences.
When jobs are designed this way, employees are motivated to work hard.

32. Job Characteristics Model – Exh 11-5

33. Job Characteristics Model
The job characteristics model (JCM) was developed by J. Richard Hackman and Greg R. Oldham.
This model can help managers design jobs that motivate.
According to Hackman and Oldham, any job can be described in terms of the following five core job dimensions:

34. Job Characteristics Model
Skill variety is the degree to which the job requires a variety of activities, allowing the worker to use a number of different skills and talents.
Task identity is the degree to which the job requires completion of a whole and identifiable piece of work.
Task significance is the degree to which the job affects the lives or work of other people.
Autonomy refers to the freedom, independence, and discretion given to the individual for scheduling the work and for determining the procedures to be used in carrying it out.
Feedback is the degree to which carrying out the work activities required by the job results in the individual’s obtaining direct and clear information about the effectiveness of his or her performance.

35. Job Characteristics Model
Notice in Exhibit 11-5 how the first three dimensions—skill variety, task identity, and task significance—combine to create meaningful work, which means if these three characteristics exist in a job, we can predict that the person will view her job as being important, valuable, and worthwhile.
Note, too, that jobs that possess autonomy give the employee a feeling of personal responsibility for the results and that if a job provides feedback the employee will know how effectively he or she is performing.

36. Job Characteristics Model (JCM)
Job Design and Motivation
From a motivational point of view, the JCM suggests that internal rewards are obtained when an employee learns that he or she personally has performed well on a task that he or she cares about—the central column of the JCM in Exhibit 11-5.
The more these three conditions characterize a job, the greater the employee’s motivation, performance, and satisfaction—and the lower the employee’s absenteeism and likelihood of resigning.

37. Job Characteristics Model (JCM)
Job Design and Motivation
As the model shows, the links between the job dimensions and the outcomes are moderated by the strength of the individual’s growth need (that is, the person’s desire for self-esteem and self- actualization).
Individuals with a high growth need are more likely to experience the critical psychological states and respond positively when their jobs include the core dimensions than individuals with a low growth need are.

38. Job Characteristics Model (JCM)
Guidelines for Job Redesign

39. Equity Theory
The term equity is the concept of fairness and comparable treatment when compared with others who behave in similar ways.
Equity theory, developed by J. Stacey Adams, proposes that employees compare what they get from a job (outcomes) to what they put into it (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others, as illustrated in Exhibit 11-7.
If an employee perceives her ratio to be equitable in comparison to those of relevant others, there’s no problem.
However, if the ratio is perceived to be inequitable, she views herself as underrewarded or overrewarded.

40. Equity Theory

41. Equity Theory
When inequities occur, employees attempt to do something about it.
The result might be lower or higher productivity, improved or reduced quality of output, increased absenteeism, or voluntary resignation.
The referent —the other persons, systems, or selves individuals compare themselves against in order to assess equity—is an important variable in equity theory. Each of the three referent categories is important.
1. “Persons” category includes others with similar jobs, friends, neighbors, etc.
2. “System” category includes organizational pay policies, procedures, and allocation,
3. “Self” category refers to past personal experiences and contacts.

42. Equity Theory
Originally, equity theory focused on distributive justice, which is the perceived fairness of the amount and allocation of rewards among individuals and which has a greater influence on employee satisfaction.
More recent research has focused on issues of procedural justice, which is the perceived fairness of the process used to determine the distribution of rewards and tends to affect an employee’s organizational commitment, trust in his or her boss, and intention to quit.
Based on the evidence, managers should consider openly sharing information on how allocation decisions are made, follow consistent and unbiased procedures, and engage in similar practices to increase the perception of procedural justice.

43. Expectancy Theory
The most comprehensive explanation of how employees are motivated is Victor Vroom’s expectancy theory, which states that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.
Its three variables or relationships are (Exhibit 11-8):
Expectancy or effort-performance linkage is the probability perceived by the individual that exerting a given amount of effort will lead to a certain level of performance.
Instrumentality or performance-reward linkage is the degree to which the individual believes that performing at a particular level is instrumental to attaining the desired outcome.
Valence or attractiveness of reward is the importance that the individual places on the potential outcome or reward that can be achieved on the job. Valence considers both the goals and needs of the individual.

44. Expectancy Theory

45. Expectancy Theory
This explanation of motivation can be summed up in the following questions:
How hard do I have to work to achieve a certain level of performance, and can I actually achieve that level?
What reward will performing at that level get me?
How attractive is the reward to me, and does it help me achieve my own personal goals?
Whether you are motivated to work hard at any given time depends on your goals and your perception of whether a certain level of performance is necessary to attain those goals.
The key to expectancy theory is understanding an individual’s goals and the links between effort and performance, between performance and rewards, and between rewards and individual goal satisfaction.

46. Integrating Motivation Theories
Exhibit 11–9 presents a model that integrates much of what we know about motivation.
Its basic foundation is the expectancy model.
The individual effort box has an arrow leading into it.
This arrow flows from the individual’s goals.
Consistent with goal-setting theory, this goals-effort link illustrates that goals direct behavior.
Expectancy theory predicts that an employee will exert a high level of effort if he or she perceives a strong relationship between effort and performance, performance and rewards, and rewards and satisfaction of personal goals.
Each of these relationships is, in turn, influenced by certain factors.

47. Integrating Motivation Theories

48. Integrating Motivation Theories
It can be seen from the model that the level of individual performance is determined not only by the level of individual effort but also by the individual’s ability to perform and by whether the organization has a fair and objective performance evaluation system.
The performance-reward relationship will be strong if the individual perceives that it is performance (rather than seniority, personal favorites, or some other criterion) that is rewarded.
The final link in expectancy theory is the rewards-goal relationship.
The traditional need theories come into play at this point. Motivation would be high to the degree that the rewards an individual receives for his or her high performance satisfy the dominant needs consistent with his or her individual goals.

49. A Closer Look at the Model
A closer look at the model also shows that it considers the achievement-need, reinforcement, equity, and JCM theories.
The high achiever isn’t motivated by the organization’s assessment of his or her performance or organizational rewards; hence the jump from effort to individual goals for those with a high nAch.
Reinforcement theory is seen in the model where the organization’s rewards reinforce the individual’s performance.
Rewards also play a key part in equity theory.
Individuals compare the rewards (outcomes) they have received from the inputs or efforts they have made with the inputs-outcomes ratio of relevant others.
If inequities exist, the effort expended may be influenced.

50. A Closer Look at the Model

51. A Closer Look at the Model
Finally, the JCM is seen in this integrative model.
Task characteristics (job design) influence job motivation in two areas.
First, jobs that are designed around the five job dimensions are likely to lead to higher actual job performance because the individual’s motivation will be stimulated by the job itself and because there will be a clear link between effort and performance.
Second, jobs that are designed around the five job dimensions also increase an employee’s control over key elements in his or her work.
Thus, jobs that offer autonomy, feedback, and similar task characteristics help to satisfy the individual goals of employees who desire greater control over their work.

52. LO4 Discuss current issues in motivating employees

53. Current Issues
Current studies of employee motivation are influenced by some significant workplace issues—motivating in tough economic circumstances, managing cross-cultural challenges, motivating unique groups of workers, and designing appropriate rewards programs.