Motivating Employees

LO2: Evaluate how to motivate individuals and teams to achieve a goal.

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Extrinsic and Intrinsic motivation

 What Is Extrinsic Motivation?

 Extrinsic motivation occurs when we are motivated to
perform a behavior or engage in an activity to earn a
reward or avoid punishment.
 People are engaging in a behavior not because they enjoy
it or because they find it satisfying, but in order to get
something in return or avoid something unpleasant.

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Extrinsic and Intrinsic motivation (cont.)

 What Is Intrinsic Motivation?

 Intrinsic motivation involves engaging in a behavior
because it is personally rewarding; essentially, performing
an activity for its own sake rather than the desire for
some external reward.
 The person's behavior is motivated by an internal desire to
participate in an activity for its own sake.

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Extrinsic and Intrinsic motivation (cont.)

 When to Use Extrinsic Motivation?

 External rewards can induce interest and participation in
something in which the individual had no initial interest.
 Extrinsic rewards can be used to motivate people to
acquire new skills or knowledge. Once these early skills
have been learned, people may then become more
intrinsically motivated to pursue the activity.

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Extrinsic Motivation

Advantages Disadvantages
1. It drives a person to 1. It is not sustainable.
perform a task even if 2. It provides diminishing
they are not interested returns.
in it.
3. It makes an activity less
2. It allows a person to set enjoyable.
goals
3. It is a way to survive.
Extrinsic Motivation

 List of Advantages of Extrinsic Motivation

 1. It drives a person to perform a task even if they are not interested in it.
How many times have we done something just for the reward? People are also extrinsically
motivated, particularly those who work at jobs they don’t even like. For instance, an aspiring
writer might work hard at their first job knowing it will lead to better opportunities.
 2. It allows a person to set goals.
Having goals is healthy because it gives you something to work hard for. Reaching for your
goals is what makes you get up early in the morning. It’s what makes you drive or commute
to work despite the heavy traffic. You do it because you know that all your sacrifices will be
rewarded.
 3. It is a way to survive.
What happens if we constantly give up without a fight? We might lose the will to live and that
is something that we shouldn’t let happen. Yes, we may not love our jobs but it’s what pays
the bills and keeps us fed. It takes a lot of patience to stay at one job while waiting for
better opportunities but as others have proven, it can be done.
Extrinsic Motivation

 List of Disadvantages of Extrinsic Motivation

 1. It is not sustainable.
The main drawback of extrinsic motivation is the reward. Knowing you will get
something when you complete a task you don’t even care for is enough for some
people. However, when that reward is taken away, thoughts race to “What am I doing
this for?” Nothing will get accomplished without motivation.
 2. It provides diminishing returns.
When the rewards are the same year after year, this likely won’t motivate people to
work harder. It has been shown that the bigger the reward, the more motivation
someone will have.
 3. It makes an activity less enjoyable.
Being motivated solely for the reward can drive people to lose interest in it over time.
People lose the desire to do tasks on their own – they constantly need to be motivated.
Intrinsic motivation

Group work
Motivation theories
Part 2

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Motivation theories:

 Content Theories  Process Theories

Explains why human needs A system of ideas that
change with time, they explains how a person
attempted to explain why changes and develops (how
human needs change, but they change).
not how they change.

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Motivation theories:

 Content Theories  Process Theories

1. Maslow’s Hierarchy of 1. Vroom's Expectancy theory

Needs. 2. Adams’ Equity Theory
2. Alderfer’s theory: ERG 3. Latham and Locke’s
theory. theory: The Goal-Setting
3. McGregor's theory: Theory Theory
X and Theory Y.

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Maslow’s Hierarchy of Needs

Is a motivational
theory that
argues that while
people aim to
meet basic
needs, they seek
to meet higher
needs in the form
of a pyramid.

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Maslow’s Hierarchy of Needs
 Physiological needs
 Physiological needs are the physical requirements for
human survival. If these requirements are not met, the
human body cannot function properly and will ultimately
fail. They should be met first, without them, the other
needs cannot follow up.
 Physiological needs include:

Air (Breathing) Water Food Sleep

Sexual instinct Clothing Shelter 13

Maslow’s Hierarchy of Needs
 Safety needs
 Once a person's physiological needs are relatively
satisfied, their safety needs take the second level. In the
absence of physical safety – due to war, natural
disaster, family violence, childhood abuse, etc. – people
may experience psychological distress.
 Safety and Security needs include:
1. Personal security
2. Financial security
3. Health and well-being
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Maslow’s Hierarchy of Needs
 Social belonging
 the third level of human needs is interpersonal and
involves feelings of belongingness.
 Deficiencies within this level affect the individual's ability
to form and maintain relationships in general.
 Social Belonging needs include: Friendships, Family.
 According to Maslow, humans need to feel a sense of
belonging and acceptance among social groups, regardless
whether these groups are large or small.

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Maslow’s Hierarchy of Needs
 Esteem
 Esteem needs are ego needs or status needs develop a
concern with getting recognition, status, importance, and
respect from others.
 Maslow noted two versions of esteem needs: a "lower"
version and a "higher" version. The "lower" version of
esteem is the need for respect from others. This may
include a need for status, recognition, fame, prestige, and
attention. The "higher" version is self-respect.
 People often engage in a profession or hobby to gain
recognition. These activities give the person a sense of
contribution or value. 16
Maslow’s Hierarchy of Needs
 Self-actualization
 This level of need refers to what a person's full potential
is and the realization of that potential.
 Maslow describes this level as the desire to accomplish
everything that one can, to become the most that one can
be.
 Maslow believed that to understand this level of need, the
person must not only achieve the previous needs, but
master them.

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Maslow’s Hierarchy of Needs

 Self-transcendence
 In his later years, Abraham Maslow explored a further
dimension of needs, while criticizing his own vision on
self-actualization.
  By this later theory, the self only finds its actualization in
giving itself to some higher outside goal, in altruism and
spirituality. He equated this with the desire to reach the
infinite.

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How to Apply Maslow's Theory to the Workplace:
Lower Level Needs:

 Generally, a person beginning their career will be very

concerned with physiological needs such as good wages
and stable income and security needs such as benefits
and a safe work environment. We all want a good salary to
meet the needs of our family and we want to work in a
stable environment.

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How to Apply Maslow's Theory to the Workplace:
Lower Level Needs:

 Once these basic needs are met, the employee will want
his "belongingness" (or social) needs met. The key point
is that employees desire to work in an environment where
they are accepted have some interaction with others.
 This means effective interpersonal relations are necessary.
Managers can create an environment where staff
cooperation is rewarded. This will encourage interpersonal
effectiveness.

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How to Apply Maslow's Theory to the Workplace:
Higher Level Needs

 With these needs satisfied, an employee will want his esteem

needs met, which are tied to an employee’s image of himself
and his desire for the respect and recognition of others.
 He may want to be on a project team, complete a special task,
learn other tasks or duties, or expand his duties in some
manner.
 Continuous-training, job enrichment, and special assignments
are popular methods for making work more rewarding. 
 A job title, awards, a nice office, business cards, work space,
etc. are also important.
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How to Apply Maslow's Theory to the Workplace:
Higher Level Needs

 With self-actualization, the employee will be interested

in growth and individual development.
 He will also need to be skilled at what he does. He may
want a challenging job, an opportunity to complete
further education, increased freedom from supervision.

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Maslow’s Hierarchy of Needs

Advantages Disadvantages
 It motivates individuals to   It fails to explain why
move from fundamental some individuals prefer to
needs toward higher ignore lesser needs in
needs, providing a clear search of higher ones,
map for personal growth.  such as when individuals
choose to forgo paying
bills in order to take a
vacation.
Alderfer’s Theory:
ERG theory
Alderfer’s Theory:ERG theory

 Alderfer further developed Maslow's hierarchy of needs by

categorizing the hierarchy into his ERG
theory (Existence, Relatedness and Growth).
 Existence needs: are concerned with providing the basic material
existence requirements of humans. They include the items that
Maslow considered to be physiological and safety needs.
 Relatedness needs: the desire people have for maintaining
important interpersonal relationships, They include the items that
Maslow considered to be the Social belonging and self-esteem needs.
 Growth needs: an intrinsic desire for personal development. They
include the item that Maslow considered to be the self-actualization.
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Advantages of ERG theory

 The ERG theory is more consistent with our knowledge of individual

differences among people. Variables such as education, family
background, and cultural environment can alter the importance of the
need. The evidence demonstrates that people in other cultures rank
the need categories differently
 Most contemporary analysis of work motivation tends to support
Alderfer’s theory over Maslow’s and Herzberg’s. overall , the ERG
theory seems to take of the  strong points of the earlier content
theories, but is less restrictive and limiting.
Disadvantage of ERG theory

 The ERG theory is newer than the need hierarchy theory,

and has neither yet attained such a wide currency, nor
such a high degree of research interest as has the need
hierarchy theory.
McGregor's theory: 
Theory X and Theory Y

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McGregor's theory: Theory X and Theory Y

 Theory x
 Theory x is based on pessimistic assumptions regarding the
typical worker.
 This management style supposes that the typical worker has
little to no ambition and shies away from work or
responsibilities.
 Generally, Theory X style managers believe their workers are
less intelligent than the managers are, lazier than the
managers, or work solely for a sustainable income.
 Due to these assumptions, Theory X concludes the typical
workforce operates more efficiently under a "hands-on"
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approach to management.
McGregor's theory: Theory X and Theory Y

 This approach depends on close supervision, intimidation, and

punishment.
 Theory X can also benefit a work place that is more suited
towards an assembly line or manual labor type of occupation.
 Applying theory X in these types of work conditions allow the
employee to specialize in a particular area allowing the
company to mass-produce more quantity and higher quality
work, which in turns brings more profit.

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McGregor's theory: Theory X and Theory Y

 Theory Y
 In contrast, Theory Y managers act on the belief that people in
the workforce are internally motivated, enjoy their labor in the
company, and work to better themselves without a direct
"reward" in return.
  Theory Y employees are considered to be one of the most
valuable assets to the company, and truly drive the internal
workings of the corporation.

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McGregor's theory: Theory X and Theory Y

 Workers additionally tend to take full responsibility for their

work and do not require the need of constant supervision in
order to create a quality and higher standard product.
 "Theory Y" managers tend towards relating to the worker on a
more personal level.
 As a result, Theory Y followers may have a better relationship
with their managers, as well as potentially having a healthier
atmosphere in the workplace.

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Vroom's Expectancy theory
Vroom's Expectancy theory
 According Victor Vroom, motivation is the result of conscious
choices we make that will either maximize pleasure or
minimize pain.
 Vroom theorized that even though the goals of individuals may
differ, they can be motivated if certain circumstances are put
in place.
 For this to happen, there must be a positive connection
between an employee's efforts and his performance, and a
positive performance must be rewarded in a way that will
satisfy an important need.
 For the employee, the desire to satisfy this need is so strong
that it makes the effort worthwhile; the expectation that the
satisfaction of this need will occur upon successful completion 34

of a task will drive performance.

Strengths of the Theory

 Employee expectations are boosted by rewards and incentives. With

proper goals set, this may trigger a motivational process that
improves performance.
 Management will better understand exactly what they need to offer
to motivate their employees, look for any gap in skills that needs
training, and commit to delivering a reward.
 If applied well, employees will willingly and happily participate in
work projects because management has planned participation based
on the staff being motivated by the chance to perform, and get
rewards that they see as meaningful.
Some Weaknesses

1. The theory won't work in practice without active participation from managers;
the theory assumes all components are already known.
 In reality, leaders must make an effort to find out what their employees value
as rewards.
 They must also accurately assess employees' capabilities (expectancy) and
make available all of the right resources to help employees be successful in
their jobs.
 Managers must also keep their word; employees need to trust that if they put
in the work and effort, they will actually get the promised reward.

2. Another weakness of the expectancy theory is when management offers

certain motivations and rewards, but the employees don't value or believe in
them
Adams’ Equity Theory
Adams’ Equity Theory

 There are two main principles to Adams 'Equity Theory.

First, there needs to be a balance between our work
inputs (effort) and outputs (reward). Second, workers
need to feel fairly treated in comparison with their
colleagues.
 Maintaining this equity, said Adams, is based on the ratio
of inputs — the contributions the employee makes to an
organization — to the outcomes that result from these
contributions.

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Adams’ Equity Theory (Cont.)

Inputs typically include: Outputs typically include:

 Effort.  Financial rewards (such as salary,
benefits, perks).
 Loyalty.
 Intangibles that typically include:
 Hard work.
 Recognition.
 Commitment.
 Reputation.
 Skill.
 Praise.
 Acceptance of others.
 Sense of advancement/growth.
 Support of colleagues.
 Job security.
 Personal sacrifice.

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Adams’ Equity Theory (Cont.)

 Equity theory states that if a person perceives an inequity,

a tension or drive will develop in the person’s mind, and
the person will be motivated to reduce or eliminate the
tension and the perceived inequity.
Adams’ Equity Theory (Cont.)

Forms of Equity

External Internal Individual Procedural

Equity Equity Equity Equity

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Pros and Cons

 Motivation
 Employees who feel that they are being mistreated are not likely to
want to do their best. On the other hand, those who feel they are
being treated equitably are more likely to be motivated to do a good
job.
 Retention
 It costs a company a lot of money to replace employees who leave.
Yet employees who don’t feel they are being treated equitably are
likely to leave their jobs as soon as another job opportunity comes
up. Treating employees equitably can reduce turnover, saving
companies the money it takes to find and hire new employees.
Latham and Locke’s theory: The Goal-Setting Theory

 Edwin Locke's goal-setting theory states that the setting of goals is

linked to performance. Specific, challenging goals and valid feedback
will contribute to better performance.
 The clearer the goals the better the performance. Goals should be
realistic and challenging, which will allow the employee to feel
satisfied when the task is successfully completed. In theory, the
confidence gained from achieving one goal will be transferred to a
person's performance in attaining the next goal.
 Locke's research showed that the more difficult and specific a goal is,
the harder people tend to work to achieve it.

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Pros of Goal Setting Theory

 Constructive Performance
 When someone sets a goal, it helps them shape their performance
accordingly. That is, it helps them to have a clear vision as to what exactly
they want, or what is expected of them. Then, strategies can be planned
accordingly and people can work towards achieving that vision, or the goal
that has been set.

 Decides Priority
 it helps one identify a specific priority. When this priority is well defined,
they strive harder to achieve it. There is lesser distraction this way in
achieving a goal.
Cons of Goal Setting Theory

 Getting Pressurized
 This is more of a problem if someone else sets goal for another individual,
because they might not be aware of the fact how the individual works, or what
are their strengths and weaknesses. Moreover, at times, even individuals set
unrealistic goals for themselves, and when they are not able to meet those
goals, they feel more pressurized.

 Brings Feeling of Failure and Depression

 Because achieving a specific goal means that a person has a sense of
accomplishment, it also follows that, not being able to achieve the goal will
mean that they will have a feeling of failure and self doubt. This kind of feeing
can also lead to various mental or performance related disorders