1. Chapter 6 Motivation
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2. Learning Objectives Define and understand the nature of motivation
Explain major content and process theories of motivation and how culture influences their application
Discuss how culture influences rewards
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3. Learning Objectives (cont.)
Explain how the meaning of work in different countries influences motivation
Consider ways of developing cross-cultural motivation systems
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4. Motivation
The amount of effort that an individual puts into doing something
Two types of Motivation
Intrinsic Motivation
Behavior performed for its own sake (Motivation comes from performing the work)
Example: jobs, being interesting as jobs
Extrinsic Motivation
Behavior performed to acquire rewards (Motivation source is the consequence of an action)
Example: working just to receive money or other rewards
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5. Motivation
Extrinsic and intrinsic motivation are not independent from each other
Extrinsic motivation can move out intrinsic motivation (internal satisfaction can be swept out by material reward)

6. Motivation (Outcomes & Inputs)
Regardless of the source of motivation, people seek outcomes (e.g. accomplishment, autonomy, pay)
Organizations hire workers to obtain inputs (e.g. skills, knowledge, work behavior)
Managers thus use outcomes to motivate workers to provide inputs.

7. Motivation Theories Two types of motivation theories
Content theories (focusing on what causes people to put effort into work)
Maslow’s Hierarchy of Needs
Herzberg’s Motivation-Hygiene Theory
McClelland’s Learned Needs Theory
Process theories (focusing on how people are putting forth efforts [what steps])
Reinforcement Theory
Goal Setting Theory
(Expectancy Theory)
Equity Theory

8. Maslow’s Hierarchy of Needs
Physiological
Safety
Affiliation
Esteem
Self-Actualization
Higher Needs
Basic Needs

9. Maslow’s Hierarchy of Needs
Physiological (basic requirements for survival: air, food, water, sex drives)
Safety and Security (Shelter/ Protection from outside threat [job security])
Affiliation (affection, friendship, belonging [team work, company social events)
Esteem (respect, pos. regard, recognition from others [praise for performance])
Self-Actualization (develop one‘s full potential [meaningful work])
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10. Maslow’s Hierarchy of Needs
Proposed order of needs does not motivate everyone
Circumstances can cause an individual to returm to more basic needs level
More than one need level important at the same time
Cultural values can influence ordering and importance of needs (e.g. collectivism: self-esteem and self-actualization can be irrelevant)

11. Maslow’s Hierarchy of Needs
Key conclusion
People differ in what needs they are trying to satisfy at work
In a global economy citizens form different countries have different needs to be satisfied through work
As countries develop from lower to higher standard of living need are likely to shift (from basic needs to higher needs)

12. Herzberg’s Motivation-Hygiene Theory
Herzberg: satisfaction and dissatisfaction are two different dimensions (not opposite ends of single dimension)
Satisfaction
is achieved by motivator factors (Aspects of the work itself (intrinsic) and how challenging it is)
Presence of these factors satisfies and motivates workers

13. Herzberg’s Motivation-Hygiene Theory
Dissatisfaction
is prevented by hygiene factors (Aspects outside the work itself (extrinsic) influence workers‘ behavior)
These factors being absent, a worker feels dissatisfied; being present brings a person (only) to a neutral state
Which Job factors cause people to feel satisfaction or experience dissatisfaction?

14. Herzberg’s Motivation-Hygiene Theory
Motivation Factors
Achievement
Recognition
Interesting work
Responsibility
Advancement
Growth
Hygiene Factors
Company policy and administration
Supervision
Relationship with supervisor
Work conditions
Pay
Relationships with peers
Security
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15. Herzberg’s Motivation-Hygiene Theory
Helps focus managers‘ attention on distinction between intrinsic and extrinsic motivation
Helps to study how to design jobs more intrinsically motivating

16. McClelland’s Learned Needs Theory
Poeple‘s individual differences in motivation is not that much influenced by instinctive desires (as in Maslow‘s theory) but by learned needs
Need for Achievement (establishing/ maintaining high level of performance)
Individuals want personal responsibility for success/ failure (calculated risk, receive immediate feedback on performance)
strive for personal success (are often dynamic entrepreneurs)
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17. McClelland’s Learned Needs Theory
Need for Achievement (establishing/ maintaining high level of performance)
Tasks too easy or too difficult do not appeal to them (they feel less responsibility for outcome)
Are not concerned about achievement of others (thus not necessarily making them good managers)
Need for Power (concern for reputation, influence, control over others)
Individuals high on this need prefer leadership positions and are rated effective leaders by others
Individuals high on this need are usually good performers and have above average attendance at work

18. McClelland’s Learned Needs Theory
Need for Affiliation (concern for social relationships)
Individuals prefer cooperative rather than competitive situations
Improving the level of eed achievement (among less economically successful countries or groups) would encourage economic development (of countries or groups)
Need for Achievement:individualistic need, not easy applicable to grouporiented cultures with lack of support for personal achievement (Asia, Mexico)

19. Conclusions about Content Theories
Identify personal factors or needs related to motivation
Personal values differ across and within cultures
Theories not universal applicable to all cultures

20. Answer These Questions to Determine Whether You Score Highest on Need for Achievement, Need for Affiliation, or Need for Power
Do you like situations where you personally must find solutions to problems?
Do you tend to set moderate goals and take moderate, thought-out risks?
Do you want specific feedback about how well you are doing?
Do you spend time considering how to advance your career, how to do your
job better, or how to accomplish something important?
If you answered yes, then you probably have a high need for achievement.
Do you look for jobs or seek situations that provide an opportunity for social
relationships?
Do you consider the feelings of others to be very important?
Do you try to restore disrupted relationships when they occur?
If you answered yes, then you probably have a high need for affiliation.
Do you try to influence and control others?
Do you seek leadership positions in a group?
Do you enjoy persuading others?
Are you perceived by others as outspoken, forceful, and demanding?
If you answered yes, then you probably have a high need for power.

21. Process Theories
Focus on (work) process rather than content (makes them more applicable in other countries)
Reinforcement or Learning Theory
Goal Setting Theory
(Expectancy Theory)
Equity Theory

22. Reinforcement/ Learning Theory
People learn behavior as a function of its consequences (rewarding/ ignoring a behavior increases/ decreases likelihood that a behavior will be repeated)
Managers must know what is rewarding to people they wish to motivate
Efficient reward systems are different across cultures (think of a reward system for a Japanese subsidiary in a western country)

23. Reinforcement/ Learning Theory
Reinforcing behavior not successfull
where people don‘t see connection: behavior – consequences (e.g. Muslims believe what happens is God‘s will)
Where rewards are based on relative status (e.g. in South America everyone associated to a successful performance receives a reward in relation to his relative status)
What people perceive as reward is subject to cultural influence (e.g. praise, appreciation motivate individuals in Southern Europe or Asia)

24. Reinforcement/ Learning Theory
People learn behavior as a function of other‘s social behavior, they observe (thoughts, beliefs, values and so forth)
People are motivated to imitate other individuals who are highly competent, expert and receive attractive reinforcers (called observational learning)
Poeple learn to control and reward their own behavior (called self-reinforcement)
People can be motivated if they believe in their ability to perform a task successfully (called self-efficacy)

25. Goal Setting Theory
People are motivated by intentions to work toward a goal they want to accomplish
Performance is increased
When goals are specific (quantitative) rather than vague
When goals are difficult (but achievable) rather than easy to achieve
When feedback is given on one‘s own output
When workers are committed to the set goals
When they participate in goal setting (although this is no prerequsition)
When self-efficacy ( belief in one‘s ability to accomplish a task) is high

26. Goal Setting Theory Culture can affect the goal setting process
In low power distance countries (e.g. Israel) participation in goal setting is stronger and more important (people are more committed to goals they participate in setting)
In high power distance countries (e.g. USA) employees commit to supervisor set goals (direct participaton not necessary)
In collective countries (e.g. China) self-efficacy is low (due to relationships as basis to accomplish tasks contrast to one‘s own belief in one‘s talents)

27. Expectancy Theory
Developed by Victor Vroom and is a very popular theory of work motivation.
Vroom suggests that motivation will be high when workers feel:
High levels of effort lead to high performance.
High performance will lead to the attainment of desire outcomes.
Consists of three areas:
Expectancy, Instrumentality, & Valence.

28. (Worker perceives that
Expectancy Theory
High Expectancy
(Worker knows that
if they try, they can
perform)
High
Instrumentality
(Worker perceives that
high performance
leads to outcomes)
High Valence
(Worker desires the
outcomes resulting
from high
performance)
Motivation
Figure 12.3

29. Expectancy, Instrumentality, & Valence
Effort
Expectancy:
Person’s
perception that
their effort will
result in
performance
Instrumentality
results in
outcomes
Valence:
How desired
are the outcomes
from a
job
Performance
Outcomes
Figure 12.2

30. Expectancy, Instrumentality, & Valence
Expectancy is the perception that effort (input) will result in a level of performance.
You will work hard if it leads to high performance.
You would be less willing to work hard if you knew that the best you would get on a paper was a D regardless of how hard you tried.
Instrumentality: Performance leads to outcomes.
Workers are only motivated if they think performance leads to an outcome.
Managers should link performance to outcomes.
Valence: How desirable each outcome is to a person.
Managers should determine the outcomes workers want most.

31. The Expectancy Model of Motivation
E P expectancy
Perceived probability
of successful
performance,
given effort
P O expectancy
Perceived probability of
receiving an outcome,
given successful
performance
Second-level outcomes,
each with valence
First-level outcomes,
each with valence
Outcome D
Outcome A
(extrinsic)
Outcome E
Outcome B
(extrinsic)
Effort
Performance
Instrumentality
Perceived probability of a
first-level outcome leading
to a second-level outcome
Outcome C
(intrinsic)
Motivation is expressed as follows:
M = [E ® P] å[(P ® O) (V)]
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32. High Motivation:
According to the Expectancy Theory, high motivation results from high levels of Expectancy, Instrumentality, & Valence.
If just one value is low, motivation will be low.
This means that even if desired outcomes are closely link to performance, the worker must feel the task is possible to achieve for high motivation to result.
Managers need to consider this relationship to build a high performance firm.

33. Equity Theory
Considers worker’s perceptions of the fairness of work outcomes in proportion to their inputs.
The Outcome/input ratio is compared by worker with another person called a referent (the referent is perceived as similar to the worker)
Equity exists when a person perceives his/ her outcome/ input ratio to be equal to the referent’s ratio

34. Equity Theory
Inequity exists when worker’s outcome/input ratio is not equal to referent.
Underpayment inequity: ratio is less than the referent. Worker feels they are not getting the outcomes they should given inputs.
Overpayment inequity: ratio is higher than the referent. Worker feels they are getting more outcomes then they should (given inputs)
Restoring Equity: Inequity creates tension in workers to restore equity.
In underpayment, workers reduce input levels to correct.
Overpayment, worker can change the referent to adjust.
If inequity persists, worker will often leave the firm.

35. Outcomes < Outcomes Outcomes > Outcomes
Equity Theory
Condition
Person Referent
Example
Equity
Outcomes = Outcomes
Inputs Inputs
Worker contributes
more inputs but also
gets more outputs
than referent
Figure 12.4
Underpayment
Equity
Outcomes < Outcomes
Inputs Inputs
Worker contributes
more inputs but also
gets the same outputs
as referent
Overpayment
Equity
Outcomes > Outcomes
Inputs Inputs
Worker contributes
same inputs but also
gets more outputs
than referent

36. Responses to Perceived Inequities in Work Situations
What happens when inequities exist?
If person A believes an inequity exists and her ratio is too small, she may
reduce her inputs
ask for more outputs
change the comparison person
rationalize that equity exists
leave the situation
If person B believes an inequity exists, and his ratio is too large, he may
increase his inputs
ask for reduced outputs

37. Equity Theory Cultural differences
Equity norm „competes“ with equality norm
Equity norm (outcome to input ratio should be relatively equal for every employee) is prevalent individualistic cultures
Equality norm (each employee gets the same outcome regardless of inputs) is prevalent in collective cultures, thereby maintaining interpersonal harmony
All process theories have to consider cultural differences when applied to countries other than USA (were these theories have been developed)

38. Pay and Motivation Pay can help motivate workers.
Need Theory: pay is used to satisfy many needs.
Learning Theory: outcomes (pay), is distributed upon performance of certain functional behavior
Goal Setting Theory: pay linked to goal attainment.
Equity Theory: pay is given in relation to inputs.
Expectancy: pay is an instrumentality (and outcome), must be high for motivation to be high

39. Merit Pay
Can be based on individual, group or organization performance.
Individual Plan: used when individual performance (sales) is accurately measured.
Group Plan: use when group works closely together and is measured as a group.
Organization Plan: When group or individual outcomes not easily measured.
Bonus has a higher impact on motivation since
Salary level not related to current performance.
Other items( base salary, cost of living, seniority).
Salary rarely goes down and usually changes little.

40. The Meaning of Work Study
Work Centrality
Societal Norms about Working
Work Goals
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41. Convergence or Divergence?
Popularity of U.S. business education leads to an emphasis on U.S. motivation theories
Global corporations desire to develop consistent policies and practices worldwide
Application of U.S. motivation theories not applicable across cultures
Need to develop adaptable systems that are consistent and effective in motivating people across cultures
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42. Implications for Managers
Choosing a single approach to motivation is difficult
Compared, process theories appear more promising than content theories
Need to understand people who work for you to select an appropriate system
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