Section Five

Motivation in Organizations

Motivation

Motivation is the
processes that
account for an
individual's intensity,
direction and
persistence of effort
toward attaining a
goal
It is not a personality
trait
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Motivation

Intensity: how hard a person tries

Direction: the quality channelled effort so as

to benefit the organization

Persistence: how long a person can maintain

his or her effort

Review of Motivation Theories

1.
2.
3.

4.
5.
6.
7.
8.

Maslow Hierarchy of Needs Theory

McGregor Theory X and Theory Y
Herzbergs Two-Factor (Motivation-Hygiene) Theory
ERG Theory
McClellands Theory of Needs
Goal-setting Theory
Equity Theory
Expectancy Theory

Hierarchy of Needs Theory. 1

Self-Actualization
Needs
represent the need for
self-fulfillment
Esteem Needs
desire for a positive selfimage
and to receive attention
Belongingness Needs
desire to be accepted by ones peers

Abraham Maslow is known for

the theory that human beings are
motivated by a hierarchy of
unsatisfied needs.

Safety Needs
safe and secure physical and emotional environment
Physiological Needs
most basic human physical needs
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Maslow Hierarchy of needs

Physiological: includes hunger, thirst, shelter and other bodily

needs
Safety: includes security and protection from physical and
emotional harm
Social: includes affection, belongingness, acceptance and
friendship
Esteem: includes

Internal esteem factors (self respect, achievement, etc.)

External esteem factors (status, recognition, etc.)

Selfactualization: drive to become what one is capable of

becoming

Douglas McGregor. 2
Theory X & Y
Theory X

People are lazy

People lack ambition
Dislike responsibility
People are self-centered
People dont like change

Theory Y

People are energetic

People want to make
contributions
People do have ambition
People will seek
responsibility

Two Factor Theory (motivation- hygiene). 3

Area of Satisfaction

Motivators
Achievement
Recognition
Responsibility
Work itself
Personal growth

Motivators
influence level
of satisfaction.

Area of Dissatisfaction

Hygiene
Factors
Working conditions
Pay and security
Company policies
Supervisors
Interpersonal
relationships

Hygiene factors
influence level
of dissatisfaction.

Two-Factor theory (motivation hygiene)

Five factors
Motivators stood out
as strong determinants
of job satisfaction:

Achievement
Recognition
Work itself
Responsibility
Advancement

The Hygiene
determinants of job
dissatisfaction were
found to be:

Company policy
Administrative policies
Supervision
Salary
Interpersonal relations
Working conditions
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ERG Theory. 4

The theory collapses Maslows five need categories

into three:

Existence needsdesire for physiological and material wellbeing

Relatedness needsdesire for satisfying interpersonal
relationships
Growth needsdesire for continued personal growth and
development

More than one need may be activated at the same

time
ERG theory emphasizes a unique frustrationregression component:

An already satisfied lower level need can become activated

(surface as key motivator) when a higher level need cannot be
satisfied.
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McClellands Theory of. 5

Needs

Which target
would you try
for?
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McClellands theory of needs

Underlying need that he believes is important for understanding

individual behavior:
Need for achievement (nAch)
The desire to do something better or more efficiently, to
solve problems, or to master complex tasks.
Need for affiliation (nAff)
The desire to establish and maintain friendly and warm
relations with others.
Need for power (nPow)
The desire to control others, to influence their behavior,
or to be responsible for others
Needs are acquired over time, as a result of life experiences
12

McClellands theory of needs

Characteristics of Achievement motivated

individuals:

The capacity to set moderate goals

The concern for personal achievement rather than
the rewards of success
The desire for job-relevant feedback (how well am
I doing?) rather than for attitudinal feedback (how
well do you like me?)

13

Matching Achievers and Jobs

A high need to achieve does not necessarily lead to

being a good manager
14

The best managers are high in their need for

power and low in their need for affiliation.
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6. Goal-Setting Theory

Proposed in
1960s by Edwin
Locke

Specific and
difficult goals lead
to higher
performance.

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Goal-Setting Theory

Specific and hard goals Higher performance

Work towards a goal is a major source of work motivation

Difficult goals, when accepted, result in higher performance

Factors like ability to achieve goals should be considered

Feedback leads to higher performance than does non-feedback
Self-generated feedback has been shown to be a more powerful
motivator than externally generated feedback
Participatively set goals

In some cases lead to superior performance

In other cases, individuals performed best when assigned

goals by their boss

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Factors influencing
Goals/Performance Relationship

Goal commitment

Adequate self-efficacy

Goals are made public

Individual has an internal locus of control
Goals are self-set rather than assigned.

Self-efficacy: belief that one is capable of performing a job

Low self-efficacy lessen their effort or give up altogether
High self-efficacy will try harder to master the challenge

National culture
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7. Equity Theory

Individuals compare their job inputs and

outcomes with those of others and then
respond so as to eliminate any
inequities

19

Equity Theory
Referent Comparisons

Evidence indicates that the referent chosen is an important

variable in equity theory
There are four referent comparisons that an employee can use:

Self-inside: An employees experiences in a different position inside

his or her current organization
Self-outside: An employees experiences in a situation or position
outside his or her current organization
Other-inside: Another individual or group of individuals inside the
employees organization
Other-outside: Another individual or group of individuals outside the
employees organization
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Equity Theory

People will act to eliminate any felt inequity in the rewards

received for their work in comparison with others through:

Change work inputs (e.g., reduce performance efforts)

Change the outcomes (reduce quality/increase number)

Leave the situation (e.g., quit)

Change the comparison points

Psychologically distort the comparisons

Compare self to a different co-worker)

Rationalize that the inequity is only temporary and will be
resolved in the future)

Take actions to change the inputs or outputs of the

comparison person

Get a co-worker to accept more work

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Expectancy Theory (Victor Vroom). 8

Need/Effort

Performance

Reward
22

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Expectancy Theory
Force directing
specific
behavioral
alternatives

Perceived
probability that
effort will lead to
good performance

Perceived probability
that good
performance will lead
to desired outcome

Value of the
expected outcome
to the individual

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 that outcome to the
individual
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Expectancy Theory

A person is motivated to the degree that he or she believes that

Effort will yield acceptable performance

Performance will be rewarded

Instrumentality is the probability assigned by the individual that a given

level of achieved task performance will lead to various work outcomes.

The value of the rewards is highly positive

The probability assigned by an individual that work effort will be followed

by a given level of achieved task performance is called Expectancy.

Valence is the value attached by the individual to various work

outcomes.

Vroom posits that motivation (M), expectancy (E), instrumentality

(I ), and valence (V) are related to one another by the equation:

M = (E) (I) (V).

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Motivation
From Concepts to Applications
1.

Management By Objectives (MBO)

2.

Employee recognition programs

3.

Employee involvement programs

4.

Variable pay programs

26

1. Management By Objectives
Converts overall organizational
objectives into specific objectives
for organizational units and
individual members.

Finance

Objectives

HR Technical
27

Management By Objectives

Specificity: concise statements of expected accomplishments

that can be measured and evaluated

Participative decision making: not unilaterally set by the boss.

The manager and employee jointly choose goals and agree on
how they will be measured

Explicit time period: objectives have a specific time period

Feedback: continuous feedback on progress toward goals so

individuals can monitor and correct their actions

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SMART Objectives

Specific and challenging objectives serve to focus individuals

attention on exactly what needs to be done

Measurable, quantitative objectives are useful as a basis for

feedback about objectives progress

Agreed upon objectives guarantee individual dedication &

management commitment to help him/her

Realistic objectives (challenging but not blocking) help

reaching high end goals gradually

Time bound objectives enhance measurability

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Types of Objectives

Operational

Values

Leadership

Personal Development

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Values objectives
Global growth Mindset

Breakthrough Performance
Innovation, Risk
Global Thinking
Profitable Growth

31

Values objectives
Results Focus

Priority On Results
Action
Accountability
Broad Impact

32

Values objectives
Obsessed with customers

Customer Driven
External Standards
Competitive Value
Outstanding Service

33

Values objectives
Workplace that is open

Open
Diverse
Supportive
Teamwork

34

Values objectives
Speed

Action
Empowerment
Rapid Adjustment

35

Leadership objectives
Coaching
Communication
Decision-making

Delegation

Leadership
Problem solving

36

Personal development
objectives

Knowledge acquisition

Training

Career development

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2. Employee Recognition Programs

Are specific programs aimed at

recognizing both individual and
group accomplishment
The use of the suggestions
system is one of the most wellknown and widely used
recognition devices
Other devices:

Personal attention
Expressing interest
Approval and appreciation for a job
well done
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Employee Involvement Programs. 3

A participative process that
uses the entire capacity of
employees and is designed
to encourage increased
commitment to the organizations
success.

39

Employee Involvement Programs

Participative management

Representative participation

A process in which subordinates share a significant degree

of decision making power with their immediate superiors

Workers participate through a small group of representative

employees in organizational decision making
Quality circles
Work councils board representatives

Employee stock ownership plans

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Variable-pay programs. 4

A portion of an employees pay is based on

some individual/organizational measure of
performance. For example:

Piece-rate pay plans

Profit-sharing plans

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SMSs
1. Most people want to:

Make a difference

Do meaningful work

Be recognized for it
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SMSs
2. Need for Esteem

Self-esteem: People need to feel good about

themselves and the work they do.
Esteem of others: People need to feel recognized
by others for the work they do.
Recognizing effort and making it possible for
employees to maintain and enhance their selfesteem have such profound impacts and are so
easy and inexpensive that it is puzzling that they
are not more widely used.
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SMSs
3. Job enrichment

If you want someone to do a good job,

give them a good job to do, Herzberg.
Make the job as interesting as possible
Build in some variety, some autonomy,
plenty of feedback
Give them a sense of the significance of
the task the big picture.
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SMSs
4. Expectancy Theory

When trying to motivate behavior, a

manager needs to ask:

Do employees value the reward Im giving?

Are the rewards Im offering associated with
good performance, and do employees see the
connection?
Are employees capable of and trained to do the
jobs they are assigned?

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SMSs
5. Goals

The goal must be both specific and difficult enough

(challenging) to be motivating
Make sure that people are aware of their goals.
To be motivating, a goal must be accepted by the
employee
To reach a goal, an individual must receive
feedback on how well he is progressing toward the
goal
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