How Motivation Influences the Employee Behavior and

Attitudes from an Organizational Perspective

How Motivation Influences the Employee Behavior and
Attitudes from an Organizational Perspective
MGT251 (Section 03)

Prepared for
Silvia Akter
Assistant Professor
Department of Business Administration,
East West University

Prepared by
Group 5
Name ID Participation (%)
Tasnim Tabassum 2017-1-30-032 20%
Waliul Gofur 2017-1-10-245 20%
Farhan Tanvir 2018-1-10-070 20%
Anne Chowdhury 2018-2-10-043 20%

Raiyan Ferdoush 2018-2-10-047 20%

Date of Submission
23rd September, 2020
Letter of Transmittal

23rd September, 2020

Silvia Akter
Assistant Professor
Department of Business Administration
East West University

Subject: Request for acceptance of the Term Paper

Honorable Ma’am,
We are pleased to submit the report that you asked for and gave us the authorization to work on
“How motivation influences the employee behavior and attitudes from an organizational
perspective” to understand the problem or issue in a real-world situation. We tried our level best to
work on it carefully and sincerely to make the report informative as much as possible Though we
are in learning curve, in this term paper we have tried to make a good combination of learning
from the course. If there is any mistake and clarification required and query needed regarding this
term paper will be gratefully acknowledged.
In the circumstances stated above we sincerely hope this report will fulfill the requirements
advised by you for the course MGT251. Lastly, we would be gratified if you would allocate some
of your valuable time to examine this report.

Sincerely Yours,
Tasnim Tabassum
Waliul Gofur
Farhan Tanvir
Anne Chowdhury
Raiyan Ferdoush

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Table of Contents

Executive Summary..............................................................................................................................iv
Acknowledgement..................................................................................................................................v
1.0 Introduction......................................................................................................................................1
1.1 The Company...................................................................................................................................1
1.2 Why Motivation is Important?.........................................................................................................1
2.0 Motivational Factors........................................................................................................................2
2.1 Early Theories of Motivation................................................................................................2
2.1.1 Hierarchy of Needs Theory...............................................................................................2
2.1.2 Theory X and Theory Y.....................................................................................................4
2.1.3 Two-Factor Theory...........................................................................................................6
2.1.4 McClelland’s Theory of Needs..........................................................................................8
2.2 Contemporary Theories of Motivation................................................................................10
2.2.1 Goal Setting Theory........................................................................................................10
2.2.2 Equity Theory..................................................................................................................10
2.2.3 Expectancy Theory..........................................................................................................11
3.0 Conclusion......................................................................................................................................12
4.0 References......................................................................................................................................13

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Executive Summary

One of the key issues to focus on to be a good manager is employee motivation, it is art and science
of individuals, groups and organizations. The organizations' real assets are workers and they are
known as the engine of every company. The need for employees to do their jobs properly is
increasing and the company receives the necessary production from employees. A manager's role is
to get stuff done by employees, and employee management is an important part of the management
process. The manager should be able to properly inspire staff to do this. As a manager, our main
focus has to keep our employees motivated in order to achieve the organizational goals.
In this report, we tried to encapsulate how motivation influences the employee of “Unilever
Bangladesh” as it is one of the biggest Multinational Company (MNC) in the FMCG (Fast Moving
Consumer Goods) sector with thousands of employees, it can be said the motivation plays an
important role in influencing the employees. Also, we have gathered information about how
motivation work in Unilever Bangladesh and employee’s perspective about the motivational factors
as well from Mr. Sumit Mutsuddy, Senior HR Executive, Unilever Consumer Care Limited.
Along with these we have given a brief of the company.

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Acknowledgement

We would like to convey our gratitude to the almighty because of successful completion of this term
paper. We would like to thank our honorable faculty, Assistant Professor Silvia Akter for providing
us with the opportunity to work on this term paper and gain experience.
We also thank all our group members & friends who inspired us & helped us to build confidence and
put us in a deep concentration to carry on our course work and supported us at the end with great
excellence.
We lastly would like to express our appreciation to our East West University and we are eventually
grateful to the University and its excellence that works for education encourages us and creates
knowledge, as knowledge is power.

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1.0 Introduction

1.1 The Company

Headquartered in London, Unilever is a multinational company which focuses on consumer goods. It

offers numerous products including food, sweets, energy drinks, baby food, soft drinks, ice cream,
tea, cleaning agents, coffee, pet food, bottled water, chewing gum, frozen pizza, pregnancy tests,
juice, beauty products, personal care, breakfast cereals, medicine and pharmaceutical healthcare
products. Superseding others, Unilever is the biggest soap producer in the world. It is one of the
oldest multinational companies and its products are reachable in around more than 190 nations.
Unilever was established on 2 September 1929, by the merger of the Dutch margarine producer
Margarine Unie and the British soap maker Lever Brothers. In the mid-20th century, the company
become progressively diversified from being a maker of products made of oils and fats, and
enhanced its operations worldwide.
With a turnover of more than 17.3 billion euros, Unilever now owns over 400 brands with sales of
over 1 billion euros. There are four main divisions where Unilever is assembled into – Foods,
Refreshment (beverages and ice cream), Home Care, and Beauty & Personal Care. Unilever has built
research and development facilities in China, India, the Netherlands, United Kingdom and United
States.

1.2 Motivation in Organizations

Motivation is not a new instrument of the management or leader. It has been used for years and so
there are a variety of theories of motivation, current and conventional. However, incorporating
motivational theories in practice implies that we face challenges that have to do with every single
employee. Personality, needs and goals are considerations that must be taken into account before
applying any motivational theory to a group of workers to ensure that this initiative derives positive
results with. In every business enterprise whether private or publicly owned, motivation plays a
crucial role in driving employees towards achieving their goals, organizational goals and to a certain
expanse the dreams of their nations.
Motivation is not immediately observable. What we observe is a multidimensional runnel of
behavior and the upshots of those behaviors. There are many theories of motivation, and they usually
give a relation or influence the results of employee job satisfaction. There are three main theory
categories and these are content theories, process theories and contemporary theories. Commonly
speaking, these theories include Maslow’s hierarchy of needs, Herzberg’s motivator-hygiene (or
two-factor) theory, Alderfer’s Existence, Relatedness and Growth theory, and McClelland’s needs
theory. Contemporary theories of motivation organize equity, control and agency theory, as well as
goal setting, reinforcement, and job design theory.
In extrinsic motivation, the factors (hygiene’s) that satisfy lower-level needs are not same with those
(motivators) that satisfy or partially satisfy higher–level needs. If hygiene factors (factors outside the
job itself, such as working conditions, salary and incentive pay) are insufficient, employees become
displeased. Instead of banking on hygiene’s, managers are interested in creating a self-motivated

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workforce should strengthen job content or motivation factors. Managers do this by enhancing
worker’s jobs so that the jobs are more challenging and by giving feedback and recognition. Rewards
as the primary factor of motivation can also inspire retention within the organization, and the broader
employment relationship and social exchange are important. Motivation’s entire idea is to provide
employees with sureties of job security, nice working condition, loyalty and belonging to the
enterprise, as well as the workforce conferred some challenges. 

2.0 Motivational Factors

2.1 Early Theories of Motivation

Four theories of employee motivation developed during the 1950s, while they're probably still
the best known, now with dubious merit. These four theories are still practiced in many
organizations as well. The four early theories of motivation are:
 Hierarchy of Needs Theory
 Theory X and Theory Y
 Two-Factor Theory
 McClelland’s Theory of Needs

2.1.1 Hierarchy of Needs Theory

Abraham Maslow was a social psychologist who was interested in a broad spectrum of human
psychological needs rather than on individual psychological problems. He organized the five
different levels of human psychological and physical needs in order of importance.
The needs in Maslow’s hierarchy include:
1. Physiological needs (food and clothing),
2. Safety needs (job security),
3. Social needs (friendship),
4. Self-esteem and
5. Self-actualization.

This hierarchy addressing five needs can be used by managers to understand employees’ motivation
and address them in ways that lead to high productivity and job satisfaction.
1. The physiological (or basic) human needs that are required for survival: food, shelter, water,
sleep, etc. If these requirements are not met, the body cannot continue to function. Faced with
a lack of food, love, and safety, most people would probably consider food to be their most
urgent need.
2. Once physical needs are satisfied, security (sometimes referred to as individual safety) takes
precedence. Security and safety needs include personal security, financial security, and health
and well-being. These first two levels are important to the physical survival of the person.
Once individuals have basic nutrition, shelter, and safety, they seek to fulfill higher-level
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 needs.

Maslow’s Hierarchy of Need

3. The third level of need is social, which include love and belonging; when individuals have
taken care of themselves physically, they can address their need to share and connect with
others. Other sources of social connection may be professional organizations, clubs, religious
groups, social media sites, and so forth. Humans need to love and be loved by others. Without
these attachments, people can be vulnerable to psychological difficulties such as loneliness,
social anxiety, and depression.
4. The fourth level is esteem, which represents the normal human desire to be valued and
validated by others, though, for example, the recognition of success or status. This level also
includes self-esteem, which refers to the regard and acceptance one has for oneself. People
suffering from low self-esteem may find that external validation by others—through fame,
glory, accolades, etc.—only partially or temporarily fulfills their needs at this level.
5. The fifth level is self-actualization. At this stage, people feel that they have reached their full
potential and are doing everything they’re capable of. Self-actualization is rarely a permanent
feeling or state. Rather, it refers to the ongoing need for personal growth and discovery that
people have throughout their lives. Self-actualization may occur after reaching an important
goal or overcoming a particular challenge.

Assumptions of Maslow's Hierarchy Needs:

A satisfied need does not motivate. When one need is satisfied, another need emerges to take it's
place. So, people are always striving to satisfy some needs.
1. The need network for most people is complex. With several affecting the behavior of each
person at any one time.

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 2. In general, power level needs must be satisfied before higher level needs are activated
sufficiently to drive behavior.
3. There are more ways to satisfied higher level needs than lower level needs. This theory points
out a fact which ignored in the conventional approach to the management of the people.
4. There is a lack of direct cause and effect relationship between need and behavior.

Implication of Maslow's Hierarchy Needs theory in Unilever Bangladesh:

With Maslow’s theory, an employee’s beginning emphasis on the lower order needs of physiology
and security makes sense. Generally, a person beginning their career will be very concerned with
physiological needs such as adequate 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
"Arguably the most important step in using the theory of needs to motivate yourself is figuring out
which of the three is your own dominant driver: the need for achievement, affiliation, or power. So
the question arises, when a manager is in a disagreement with his/her team member, do managers
stick to their guns or do they roll over in favor of maintaining a good relationship? " - We asked this
question to Unilever Human Resource Executive.
He answered- "It depends on the situation – I personally prefer taking a collaborative approach to
solving problems meaning either I convince my team that my idea is effective & efficient, or they
convince me that theirs would be better. However, in real life situation, sometimes due to time or
resource constraints, or simply because of the lack of experience on the teams’ part sticking to your
own opinion - although may not be the most effective, proves to be the most efficient way of solving
a problem."
Finally, as we work to apply Maslow’s Hierarchy of Needs Theory to our workplace, we have to
keep in mind that, Maslow’s Theory is always working in the background. It is not something that
shuts off once our meet employees’ needs.
For example, as you seek to meet objectives in the workplace, your employees will evaluate how
well your objectives align with their needs.

2.1.2 Theory X and Theory Y

Social psychologist Douglas McGregor developed two opposing theories in the 1960s that clarified
how the views of managers about what motivates their people can influence their management style.
He labeled the theory X and theory Y. Even today, these theories remain relevant. This theory is
essentially two separate perceptions of individuals one of which is negative, called as Theory X and
the other is positive, called Theory Y. According to McGregor, managers' interpretation of
individuals' existence is based on separate assumptions.
McGregor assumed that, when grouped under theory X and theory Y, management could use any of
the needs to inspire its employees. But the Y theory, however, yields better results than the X theory.

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  Theory X:
Theory X relies on the hierarchical management style, where each employee is expected by the
managers to give orders and to keep a close check. The workers are not inspired as is believed,
and they hate to work. Managers of theory X appear to take a negative view of their employees,
and believe they are naturally unmotivated and despise work. As a consequence, they think that
team members need to be continually motivated, rewarded or disciplined to ensure they complete
their tasks.
Assumption of Theory X:

 The employee is lazy and dislikes work.

 He is not ambitious and dislikes responsibility and therefore prefers to be led.
 The employee is self-centered and indifferent towards the organizational interest.
 Management is responsible for assembling all the factors of production, Viz. Money,
material, equipment, people.
 The managers are required to control his employees, manage their efforts, motivate them,
modify their behavior to comply with the organizational needs.
 The management must intervene to keep the employees working towards the economic
ends. The employees must be persuaded, rewarded, motivated, punished, controlled to get
the work completed.

 Theory Y
Theory Y relies on the participatory management style, where the managers believe the workers
are self-directed and self-motivated to achieve the organizational goals. Therefore, here, with less
effort on their side, the management aims to get the full production. Theory Y managers have
their people's constructive, positive view and use a de-centralized, participative form of
management. Theory Y promotes a more collaborative, trust-based partnership between
managers and their team members. People have more transparency, and supervisors allow them
to improve their skills and propose changes. In clear contrast with Theory X, the management of
Theory Y makes the following assumptions:

Assumption of Theory Y:

 Work can be as natural as play if the conditions are favorable.

 People will be self-directed and creative to meet their work and organizational objectives
if they are committed to them.
 People will be committed to their quality and productivity objectives if rewards are in
place that address higher needs such as self-fulfillment.
 The capacity for creativity spreads throughout organizations.
 Most people can handle responsibility because creativity and ingenuity are common in the
population.
 Under these conditions, people will seek responsibility.

Implications of Theory X and Theory Y in Unilever Bangladesh

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Managers at Unilever Bangladesh mostly use a mixture of Theory X and Theory Y. For new
beginners who probably need a lot of help, or in a situation that needs an employee to take action,
such as a crisis, they use a Theory X management style. When an employee is slacking off from
his/her duties, managers provide candid and constructive feedback. Managers also tries to find the
root cause of the problem and define specific performance improvement plan if necessary. The
restrictive nature of Theory X, for example, if the method is too rigid, this may cause people to
become demotivated and non-cooperative. This will result in a high turnover of employee and in the
long run could harm organizational image. That is when managers in Unilever try to find the root
problem and provide constructive feedback. They make their employees set targets and participate in
the self-evaluation process to improve commitment and devotion. In the decision-making process,
they also consult with workers to tap their creative potential and allow them some influence over
their work environment.

2.1.3 Two-Factor Theory

The motivation theory of Frederick Herzberg is also named Two Factor Theory, Dual Factor Theory, and
Motivation Hygiene or Maintenance Theory. This hypothesis is based on the knowledge he and his associates
(in the USA in 1959) gathered through interviews with two hundred engineers and accountants. The
knowledge gathered relates to people's attitude towards work. The knowledge gathered relates to people's
attitude towards work. There are some job variables that result in satisfaction, according to Herzberg, while
there are other job variables that prevent dissatisfaction.

Two Factor Theory suggests that there are two variables that a company should change in the workplace to
impact motivation.
1. Hygiene factors
2. Motivation factors

 Hygiene Factors:

Hygiene factors are those job factors that are critical to the nature of workplace motivation. These don't
contribute to positive long-term satisfaction. But if these factors are missing or, if certain factors in the
workplace are non-existent, then they contribute to discontent. In other words, hygiene factors are those
factors that pacify the workers and do not make them unhappy when they are adequate or reasonable at a
job. To function, these variables are extrinsic. Hygiene factors are often referred to as dissatisfiers or
variables of maintenance as they are required to prevent dissatisfaction. The work environment / scenario
is defined by these variables. The hygiene factors symbolized the physiological needs the individuals
needed to meet and predicted. Factors affecting hygiene include:

 Job Salary: The pay or salary structure should be appropriate and reasonable. It must be equal and
competitive to those in the same industry in the same domain.
 Company Policies and administrative policies: The company policies should not be too rigid.
They should be fair and clear. It should include flexible working hours, dress code, breaks,
vacation, etc.
 Fringe benefits: The employees should be offered health care plans (Mediclaim), benefits for the
family members, employee help programmes, etc.
 Physical Working conditions: The working conditions should be safe, clean and hygienic. The
work equipments should be updated and well-maintained.
 Status: The employees’ status within the organization should be familiar and retained.

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  Interpersonal relations: The relationship of the employees with his peers, superiors and
subordinates should be appropriate and acceptable. There should be no conflict or humiliation
element present.
 Job Security: The organization must provide job security to the employees.

 Motivation Factors:
According to Herzberg, it is not possible to consider hygiene variables as motivators. The motivational
variables generate positive satisfaction. Job is inherent in those variables. These variables inspire the
workers to achieve superior results. These are called satisfiers. These are variables in the execution of the
work. Employees find these variables inherently satisfying. The psychological needs that were seen as an
added advantage were symbolized by the motivators. Motivator factors include:

 Recognition: The employees should be praised and recognized for their accomplishments by the
managers.
 Sense of achievement: The employees must have a sense of achievement. This depends on the
job. There must be a fruit of some sort in the job.
 Growth and promotional opportunities: There must be growth and advancement opportunities in
an organization to motivate the employees to perform well.
 Responsibility: The employees must hold themselves responsible for the work. The managers
should give them ownership of the work. They should minimize control but retain accountability.
 Meaningfulness of the work: The work itself should be meaningful, interesting and challenging
for the employee to perform and to get motivated.

Assumptions of Two Factor Theory:

The assumptions of Two Factory theory are that, the satisfaction factors that please people who work are not
the same as the elements that actually dissatisfy individuals who work. He had found that when people were
outstanding in their jobs and were regularly rewarded for the work they were doing, they were already able

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and comfortable with the skill set required and the knowledge of their position That would significantly lead
them to outperform individuals who were not happy with their position in the job. This theory assumes that, A
shortage of certain variables would demotivate employees, but it would not further inspire employees to raise
these variables to a certain amount. In comparison, if they were absent, these variables would not demotivate
workers, but they were provided that they would increase employee motivation.
Implications of Two Factor Theory in Unilever Bangladesh:
Managers at Unilever emphasize ensuring the hygiene factors which are sufficient to prevent
employee dissatisfaction. The managers also make sure the job is stimulating and satisfying to
inspire the workers to work and perform harder and better. This principle emphasizes job-enrichment
in order to inspire workers. When asked, managers at Unilever believe that Interpersonal roles play
an important role in motivation. Also, growth and recognition play a huge role in employee
motivation. At first, they motivate their team by ensuring that the hygiene factors are not causing
dissatisfaction. They use some common some steps to remove hygiene stressors. They are,
 Rectify small and bureaucratic procedures for company.
 Make sure that every member of the team feels valued without feeling micromanaged.
 Ensure that the working community of daily life is welcoming. No bullying anyway, no
cliques. Everyone treated with fair regard.
 Ensure wages are competitive in business.

Limitations of Two Factor Theory:

 Situational variables are ignored by the two-factor theory.

 A correlation between satisfaction and efficiency was believed by Herzberg. But Herzberg 's analysis
emphasized happiness and overlooked competitiveness.
 The reliability of the theory is uncertain. Analysis must be carried out by the raters. By analyzing the
same answer in various ways, the raters can spoil the results.
 No systematic satisfaction test was used. Despite the fact that he may hate / object part of his work, an
employee may find his work appropriate.
 The theory of two variables is not free from prejudice since it is based on the normal response of
workers when the causes of pleasure and disappointment at work are examined. External influences
such as wage structure, corporate practices and peer relationships can be blamed for discontent. The
workers will also award themselves credit for the happiness factor at work.
 Blue-collar jobs are overlooked by the theory. Despite these shortcomings, the Two-Factor principle
of Herzberg is largely appropriate.

2.1.4 McClelland’s Theory of Needs

In the early 1940s, Abraham Maslow gave his Theory of needs which identified the basic needs that
human beings have, in order of their importance: physiological needs, safety needs, and the needs for
belonging, self-esteem and "self-actualization".
However, David McClelland in 1961 book, "identified three motivators that he believed we all have:
1. Need for achievement
2. Need for affiliation
3. Need for power.

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People will have different characteristics depending on their dominant motivator.
According to McClelland, regardless of our gender, culture, or age, we all have three motivating
drivers, and one of these will be our dominant motivating driver. This dominant motivator is largely
dependent on our culture and life experiences.
These characteristics are as follows:
1. Achievement: People motivated by achievement need challenging, but not impossible,
projects. They thrive on overcoming difficult problems or situations, so make sure you keep
them engaged this way. People motivated by achievement work very effectively either alone
or with other high achievers.
2. Affiliation: People motivated by affiliation work best in a group environment, so try to
integrate them with a team whenever possible. They also don't like uncertainty and risk.
Therefore, when assigning projects or tasks, save the risky ones for other people. When
providing feedback to these people, we have to be personal. It's still important to give
balanced feedback, but if we start our appraisal by emphasizing their good working
relationship and our trust in them.
3. Power: Those with a high need for power work best when they're in charge. Because they
enjoy competition, they do well with goal-oriented projects or tasks. They may also be very
effective in negotiations or in situations in which another party must be convinced of an idea
or goal.

Assumptions of McClelland's Theory:

1. McClelland's Human Motivation Theory states that every person has one of three main
driving motivators: the needs for achievement, affiliation, or power. These motivators are not
inherent; we develop them through our culture and life experiences.
2. Achievers like to solve problems and achieve goals. Those with a strong need for affiliation
don't like to stand out or take risk, and they value relationships above anything else. Those
with a strong power motivator like to control others and be in charge.
3. There is little evidence that need structures are organized as Maslow proposed, that
unsatisfied needs motivate, or that a satisfied need activates movement to a new need level.
4. There is no direct cause and effect relationship between need and behavior. One particular
need may cause different types of behavior in different persons. On the other hand, a
particular individual behavior may be the result of different needs.
5. The physiological and safety needs are more important as compared to McClelland’s needs.

Implication of McClelland's Human Motivation Theory in Unilever Bangladesh:

Understanding the theory of needs is only the first step. One also need to know how to appropriately
implement it to motivate employee. They provide reward to their staff with non-monetary incentives
using David McClelland motivation theory. Increase job satisfaction using the core values
established by David McClelland leadership theory. Employees who actively participate in creating

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job duties are less likely to seek out other employment. They Encourage your staff to offer input on
work assignments and Create a culture of employee recognition.
Finally, every employee wants to get a reward for his performance or hard work and without it once
can easily be demotivated. So, it's difficult for companies to measure the performances. There are
many types of rewards that keeps employees motivated. however, managers also have to avoid
making them overwhelming or demotivated because of the rewards. So, after the interview what
Unilever can do - measure the performance with combination of many things i.e. comparable results,
attitude, values resonating with the organization’s values etc.

A good Rewards program is designed based on a few factors:

1. Fairness
2. Internal & external parity
3. Impact of the contribution
4. Strict standards

2.2 Contemporary Theories of Motivation

The conclusions were based on early motivation theories, and often clear evidence did not support
these theories. Alternative motivation hypotheses have thus been put forward over time. The
contemporary theories of motivation include:
1. Goal Setting Theory
2. Equity Theory
3. Expectancy Theory

2.2.1 Goal Setting Theory

2.2.2 Equity Theory

The Adam’s equity theory was developed by the American psychologist John Stacey Adams in 1963.
It’s about the balance between the effort an employee puts into their work, and the result they get in
return. Input includes hard work, skills, and enthusiasm. Output can be things like salary,
recognition, and responsibility. A proper balance between input and output ensures that an employee
feels satisfied and motivated, contributing to their productivity. Even though Adams’ theory is over
50 years old, it’s still relevant today. This can help create an effective company structure in which
employees are encouraged to carry out their work with conviction and passion every day.
Assumptions of Adam’s equity theory:
 When ratios are equal the state of equity exists and no tension occurs as the situation is
considered fair,
 When ratios are unequal: tension exists due to unfairness,
 Tension motivates people to act to bring their situation into equity.

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Implications of Adam’s equity theory in Unilever Bangladesh:

Managers at Unilever Bangladesh believe that Every employee act as a small cog in the large
organizational wheel. From an organizations point of view a particular employee type provides the
most optimum level of performance in specific area of expertise and organization will always be on
the lookout to find someone who fits the bill. They think that no matter how much they motivate a
veteran accountant they won’t be able to make him or her enjoy being in a salesman’s shoes let alone
meet expectations unless he/she is either passionate about sales or he/she really needs to the job. So
they try to look for the best employee who fits for the job and is passionate about it. They try to make
sure that the employee this getting the best possible experience and comfort while working on their
organization. They are fair to their employees and tries to give proper rewards based on their
performance. They also make sure that they employees are getting better benefits than other
companies’ employees for the same type of job they do. They give proper recognition to of their
employee’s work. These things keep their employees happy and motivated thus no tension arises in
between them.

2.2.3 Expectancy Theory

Vroom’s expectancy theory assumes that behavior results from conscious choices among alternatives
whose purpose it is to maximize pleasure and minimize pain. Together with Edward Lawler and
Lyman Porter, Victor Vroom suggested that the relationship between people's behavior at work and
their goals was not as simple as was first imagined by other scientists. Vroom realized that an
employee's performance is based on individual factors such as personality, skills, knowledge,
experience and abilities. He linked it with three important things which are,
1. Expectancy of performance success
2. Instrumentality of success in getting reward
3. Valuation of the reward in employee’s eyes

Assumptions of Vroom’s expectancy theory:

 There is a positive correlation between efforts and performance,

 Favorable performance will result in a desirable reward,
 The reward will satisfy an important need,
 The desire to satisfy the need is strong enough to make the effort worthwhile.

Implications of Vroom’s Expectancy Theory in Unilever Bangladesh:

Managers at Unilever Bangladesh thinks that the measurement of performance is a combination of

many things i.e. comparable results, attitude, values resonating with the organization’s values etc. So
they believe that a good reward program must be designed keeping some important key factors in
mind, so that the employees don’t get demotivated. The factors are.

 Fairness
 Internal & external parity
 Impact of the contribution

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  Strict standards

They try to make sure that the rewards they will be giving away are fair rewards. They don’t want to
give rewards to anyone who has not worked enough to earn that thing. In this way fairness in the
rewarding system keeps everyone motivated to do their work. They try to maintain parity between
their employees who are one a same level so that they know their bench mark for their performance.
They try to measure the impact of their employees work so everyone works proactively to create and
impact rather than just doing their work without any proper vison. They also maintain some strict
standards when it comes to measuring the performance and giving rewards. This is how they manage
to keep their employees motivated using this theory.

3.0 Conclusion

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4.0 References

Anon., 2020. My Organizational Behavior. [Online]

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