1. Organizational Behavior BBA & MBA
Lecture
Motivation Concepts
Course Lecturer: Farhan Mir

2. What Is Motivation? Direction Intensity Persistence
Motivation is the process that accounts for an individual’s intensity, direction, and persistence of effort toward the attainment of a goal. Intensity is concerned with how hard a person tries. This is the element most of us focus on when we discuss the topic of motivation. However, unless effort is channeled in a direction that benefits the organization, high intensity is no guarantee of favorable job-performance outcomes. Quality of effort, therefore, is just as important as intensity of effort. Finally, persistence (how long a person can maintain effort) is important. A motivated person stays with a task long enough to achieve his or her goal.

3. What Is Motivation? Motivation Key Elements
The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal
Key Elements
Intensity: How hard a person tries
Direction: Toward beneficial goal
Persistence: How long a person tries

4. Early Theories of Motivation
These early theories may not be valid, but they do form the basis for contemporary theories and are still used by practicing managers.
Maslow’s Hierarchy of Needs Theory
Alderfer’s ERG (Existence, Relatedness, and Growth)
McGregor’s Theory X and Theory Y
Herzberg’s Two-Factor Theory
McClelland’s Theory of Needs

5. Hierarchy of Needs Theory (Maslow)
There is a hierarchy of five needs: physiological, safety, social, esteem, and self-actualization; as each need is substantially satisfied, the next need becomes dominant.
Self-Actualization
The drive to become what one is capable of becoming

6. Maslow’s Hierarchy of Needs
Lower-Order Needs
Needs that are satisfied externally; physiological and safety needs
Higher-Order Needs
Needs that are satisfied internally; social, esteem, and self-actualization needs
Self
Esteem
Social
Safety
Physiological

7. Assumptions of Maslow’s Hierarchy
Movement Up the Pyramid
Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied.
Maslow Application
A homeless person
will not be motivated to
meditate!
Individuals therefore must move up the hierarchy in order.

8. Managers See Workers as…
Theory X
Managers See Workers as…
Disliking Work
Avoiding Responsibility
Having Little Ambition
Theory Y
Managers See Workers as…
Enjoying Work
Accepting Responsibility
Self-Directed
Douglas McGregor said that managers hold one of two sets of assumptions about human nature: either Theory X or Theory Y. Seeing people as irresponsible and lazy, managers who follow Theory X assume the following:
1. Employees inherently dislike work and will try to avoid it.
2. Since employees dislike work, they must be coerced, controlled, or threatened to achieve goals.
3. Employees avoid responsibilities and seek formal direction, if possible.
4. Most workers place security above all other work-related factors and will display little ambition.
Since they see people as responsible and conscientious, managers who follow Theory Y assume the following:
1. Employees can view work as being as natural as rest or play.
2. When committed to their objectives, people will exercise self-direction and self-control
3. The average person can learn to accept, even seek, responsibility.
4. Many workers besides managers have innovative decision-making skills.
No hard evidence confirms that either set of assumptions is universally true. It is more likely that the assumptions of Theory X or Theory Y may or may not be appropriate, depending on the situation at hand.
No empirical evidence to support this theory

9. Herzberg’s Two-Factor Theory
Bottom Line: Satisfaction and dissatisfaction are not opposites of the same thing!
Hygiene Factors
Salary
Work Conditions
Company Policies
Motivators
Achievement
Responsibility
Growth
Separate Constructs
Hygiene Factors—Extrinsic and Related to Dissatisfaction
Motivation Factors—Intrinsic and Related to Satisfaction

10. 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
No overall measure of satisfaction was used
Herzberg assumed, but didn’t research, a strong relationship between satisfaction and productivity

11. Comparison of Satisfiers and Dissatisfiers
Factors characterizing events on the job that led to extreme job dissatisfaction
Factors characterizing events on the job that led to extreme job satisfaction
Source: Reprinted by permission of Harvard Business Review. An exhibit from One More Time: How Do You Motivate Employees? by Frederick Herzberg, September–October Copyright © 1987 by the President and Fellows of Harvard College: All rights reserved.

12. Contrasting Views of Satisfaction and Dissatisfaction

13. David McClelland’s Theory of Needs
Need for Achievement
The drive to excel, to achieve in relation to a set of standards, to strive to succeed
Need for Affiliation
The desire for friendly and close personal relationships
Bottom Line
Individuals have different levels of needs in each of these areas, and those levels will drive their behavior.
Need for Power
The need to make others behave in a way that they would not have behaved otherwise

14. Matching High Achievers and Jobs

15. 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
Don’t 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

16. Contemporary Theories of Motivation
Cognitive Evaluation Theory
Goal-Setting Theory
Management By Objectives (MBO)
Self-Efficacy Theory
Also known as Social Cognitive Theory or Social Learning Theory
Reinforcement Theory
Equity Theory
Expectancy Theory

17. Cognitive Evaluation Theory
Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation
The theory may be relevant only to jobs that are neither extremely dull nor extremely interesting.
Hint: For this theory, think about how fun it is to read in the summer, but once reading is assigned to you for a grade, you don’t want to do it!

18. Cognitive Evaluation Theory – Lets have a situation

20. Goal-Setting Theory (Edwin Locke)
Basic Premise: That specific and difficult goals, with self-generated feedback, lead to higher performance.
But, the relationship between goals and performance will depend on:
Goal commitment
“I want to do it & I can do it”
Task characteristics (simple, well-learned)
National culture

22. Goal Setting in Action: MBO Programs
Management By Objectives Programs
Company wide goals and objectives
Goals aligned at all levels
Based on Goal Setting Theory

23. What Is MBO? Management by Objectives (MBO) Key Elements
A program that encompasses specific goals, participatively set, for an explicit time period, with feedback on goal progress
Key Elements
Goal specificity
Participative decision making
An explicit time period
Performance feedback

24. Cascading of Objectives

25. Linking MBO and Goal-Setting Theory
MBO Goal-Setting Theory
Goal Specificity Yes Yes
Goal Difficulty Yes Yes
Feedback Yes Yes
Participation Yes No (qualified)

26. Why MBOs Fail Unrealistic expectations about MBO results
Lack of commitment by top management
Failure to allocate reward properly
Cultural incompatibilities

27. Bandura’s Self-Efficacy Theory
An individual’s belief that he or she is capable of performing a task
Higher efficacy is related to:
Greater confidence
Greater persistence in the face of difficulties
Better response to negative feedback (work harder)
Self-Efficacy complements Goal-Setting Theory

28. Enhances probability that goals will be achieved
Self-Efficacy
An individual’s feeling that s/he can complete a task (e.g. “I know I can!”)
Enhances probability that goals will be achieved
Not to be confused with:
Self-esteem, which is:
Individuals’ degree of liking or disliking themselves

29. Self-Efficacy and Goal Setting

30. Four Ways of Increasing Self-efficacy (Bandura)
Enactive Mastery
Vicarious Modeling
Verbal Persuasion
Arousal
Note: Basic Premise/Mechanism of Pygmalion and Galatea Effects

31. Reinforcement Theory
Argues that behavior is a function of its consequences
Assumptions:
Behavior is environmentally caused.
Behavior can be modified (reinforced) by providing (controlling) consequences.
Reinforced behavior tends to be repeated.

32. Equity Theory Equity Theory Referent Comparisons:
Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities
Referent Comparisons:
Self-inside
Self-outside
Other-inside
Other-outside

34. Equity Theory (cont’d)

35. 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

36. Justice and Equity Theory

37. Three Types of Justice Distributive Justice Procedural Justice
Perceived fairness of the outcome (the final distribution)
“Who got what?”
Procedural Justice
Perceived fairness of the process used to determine the outcome (the final distribution)
“How was who gets what decided?”
Interactional Justice
The degree to which one is treated with dignity and respect.
“Was I treated well?”

39. Ethical Values and Behaviors of Leaders
Expectancy Theory
Ethical Values and Behaviors of Leaders
Bottom Line
All three links between the boxes must be intact or motivation will not occur. Thus,
Individuals must feel that if they try, they can perform and
If they perform, they will be rewarded and
When they are rewarded, the reward will be something they care about.

40. Chapter Check-up: Motivation
Elizabeth’s boss starts out the day each morning saying, “Bet you wish you didn’t have to be here, huh?” Knowing this, which theory gives us insight as to why Elizabeth may not be motivated at work?

41. Chapter Check-up: Motivation
Elizabeth’s boss my well be a Theory X manager, as she/he assumes employees don’t like work and/or want to be there.

42. Chapter Check-up: Motivation
If you study really hard and only get a B on an exam, but your classmate barely studies at all and gets an A, what theory will help explain why you feel less motivated to go to class?

43. Chapter Check-up: Motivation
What theory would say that this man, who knows he works hard and is performing well, will be motivated by a gym membership for being a high performer?

44. Chapter Check-up: Motivation
Expectancy Theory
Would a gym membership be considered a motivator or hygiene factor, according to Herzberg? Discuss with a classmate.

45. Global Implications Motivation theories are often culture-bound
Maslow’s Hierarchy of Needs Theory
Order of needs is not universal
McClelland’s Three Needs Theory
nAch presupposes a willingness to accept risk and performance concerns – not universal traits
Adams’ Equity Theory
A desire for equity is not universal
“Each according to his need” – socialist/former communists
Desire for interesting work seems to be universal
There is some evidence that the intrinsic factors of Herzberg’s Two-Factor Theory may be universal

46. Summary and Managerial Implications
Need Theories (Maslow, Alderfer, McClelland, Herzberg)
Well known, but not very good predictors of behavior
Goal-Setting Theory
While limited in scope, good predictor
Reinforcement Theory
Powerful predictor in many work areas
Equity Theory
Best known for research in organizational justice
Expectancy Theory
Good predictor of performance variables but shares many of the assumptions as rational decision making

47. Putting It All Together