Motivation - Part 2

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Motivation – Part 2 – RBI Grade B 2018
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Past Year Exam Analysis on Motivation
Year 2016
Topic Marks Remarks
Personality Attribute 1
Year 2017
Equity Theory 2 Case Study Based Question
Goal Setting Theory 1
Natural ability of Person 1

Called (Aptitude)
Self-Determnation Theory 3
Morale 1
Important Points
1. Give emphasis on key works for every theory as RBI is playing with words when
setting up the questions
2. Practice Our Worksheets and MCQ’s after reading this chapter so that you are
able to grasp the concept
3. Do not leave any theory assuming that it is not important as RBI is putting
questions from lot of lesser important theories

Contents
1 Motivational Theories ......................................................................................................... 5
2 Process Based Theories........................................................................................................ 5
2.1 Vroom’s Expectancy Theory........................................................................................... 6
2.1.1 Implications of Expectancy Theory........................................................................... 9
2.2 Edwin Locke’s Goal Setting Theory.................................................................................10
2.2.1 How do Managers Implement Goal Setting Theory? ..................................................11
2.2.2 Advantages and Disadvantages ..............................................................................12
Advantages of Goal Setting Theory.......................................................................................12
Limitations of Goal Setting Theory........................................................................................12
2.3 Adam’s Equity Theory ..................................................................................................12
2.3.1 Referents in Equity Theory ....................................................................................14
2.3.2 Assumptions in Equity Theory ................................................................................14
2.3.3 Implications in Workplace .....................................................................................14
2.3.4 Criticism .............................................................................................................15
2.4 Self Determination Theory............................................................................................16
2.4.1 How does it Works ...............................................................................................17
2.4.2 Implications ........................................................................................................18
2.5 Cognitive Evaluation Theory .........................................................................................18
2.5.1 Implications ........................................................................................................19
2.6 Reinforcement Theory .................................................................................................20
2.6.1 Some More Points on the Reinforcement Theory......................................................22
2.7 Clark Hull’s Drive Reduction Theory ...............................................................................23
2.7.1 Criticism of Drive Reduction Theory ........................................................................23
2.8 Self-Efficacy Theory .....................................................................................................24
2.8.1 Factors Affecting Self-Efficacy ................................................................................25
2.8.2 How does Self- Efficacy Impacts Motivation? ...........................................................25
2.8.3 Increasing Self-Efficacy in Others ............................................................................26
2.8.4 Relationship between Goal-Setting theory and Self-Efficacy Theory.............................26
2.9 Hackman and Oldham job characteristics model..............................................................28
2.9.1 What Causes High Motivation ................................................................................28
2.9.2 Job Characteristics which help us in reaching these Psychological States ......................29
2.9.3 Outcomes ...........................................................................................................30

2.9.4 Moderators.........................................................................................................30
2.9.5 Implications ........................................................................................................30
2.10 Porter and Lawler Model of Motivation ..........................................................................32
2.11 Hawthorne Effect ........................................................................................................34
2.11.1 How to apply it to the workplace............................................................................35
2.12 Three Dimensional Theory of Attribution........................................................................35
2.12.1 Three Dimensions of Weiner’s Model......................................................................35
2.12.2 Implication in Work Place ......................................................................................37
2.12.3 Argyris’s Theory of Motivation ...............................................................................37
2.12.4 Single Loop and Double Loop Learning ....................................................................39
3 Concept of Morale .............................................................................................................39
3.1 Difference Between Motivation and Morale ...................................................................40
3.2 Factors Affecting Morale..............................................................................................41
3.3 Role of Incentives in Building up Morale .........................................................................42
4 Motivation and Personality .................................................................................................43
4.1 What is Personality .....................................................................................................43
4.2 Linkage between Motivation and Personality ..................................................................45
5 Summary Sheets ................................................................................................................45

1 Motivational Theories
The motivational theories are basically categorized into the following
1. Content Theories: Content Theories look at specific needs that motivate people. The need can be
intrinsic or extrinsic needs and hence managers should know the needs of each individual. This
basically concentrates on what motivates an individual?
2. Process Theories: Process theories attempt to explain how the process of motivation works in an
individual. Individuals make choices based on preferences, rewards and accomplishments and
therefore managers need to understand the process of motivation
We have already discussed Content based theories. In this document, we will discuss Process based
theories and other concepts
2 Process Based Theories

Process based theories take into account the process of motivation i.e. how individual thinks about the
goals, effort and rewards while trying to work in an organization. These theories explain on the how the
motivation occurs in an individual. The Process based theories that we would be discussing in this lesson
are

2.1 Vroom’s Expectancy Theory
According to expectancy theory, individual motivation to put forth more or less effort is
determined by a rational calculation in which individuals evaluate their situation. According to this
theory, individuals ask themselves three questions
1. The first question is whether the person believes that high levels of effort will lead to outcomes
of interest, such as performance or success. This perception is labeled expectancy. For
example, do you believe that the effort you put forth in an office is related to performing well
(performing the Job well) in that class? If you do, you are more likely to put forth effort. This is

also called Effort-> Performance i.e. Whether effort put in will lead to the desired
performance. The factor which impact expectancy level of an employee is
I. Self-Efficacy – the person's belief about their ability to successfully perform a particular
behavior. The individual will assess whether they have the required skills or knowledge
desired to achieve their goals.
II. Goal difficulty – when goals are set too high or performance expectations that are made
too difficult. This will most likely lead to low expectancy. This occurs when the individual
believes that their desired results are unattainable.
III. Perceived control – Individuals must believe that they have some degree of control over
the expected outcome. When individuals perceive that the outcome is beyond their
ability to influence, expectancy, and thus motivation, is low.
2. The second question is the degree to which the person believes that performance is related to
subsequent outcomes, such as rewards. This perception is labeled instrumentality. For
example, do you believe that performing your Job well in office is related to rewards such as
promotion? If you do, you are more likely to put forth effort. This is also called
Performance -> Outcome i.e. whether the desired performance will result in the outcome or
the rewards
Factors associated with the individual's instrumentality for outcomes are trust, control and
policies:
I. Trusting the people who will decide who gets what outcome, based on the performance,
II. Control of how the decision is made, of who gets what outcome,
III. Policies understanding of the correlation between performance and outcomes.
3. Finally, individuals are also concerned about the value of the rewards awaiting them as a result
of performance. The anticipated satisfaction that will result from an outcome is
labeled Valence. The value an individual places on the rewards of an outcome is based on their
needs, goals, values and Sources of Motivation. For example, do you value getting promoted?
If these outcomes are desirable to you, your expectancy and instrumentality is high, and you
are more likely to put forth effort. But in case you do not value promotion then you will not be
motivated to work hard because you do not value the rewards.
I. The valence refers to the value the individual personally places on the rewards. -1
→0→ +1
II. -1= avoiding the outcome 0 = indifferent to the outcome +1 = welcomes the outcome
III. In order for the valence to be positive, the person must prefer attaining the outcome
to not attaining it.
4. Motivational Force (MF) = Expectancy x Instrumentality x Valence

I. When deciding among behavioral options, individuals select the option with the
greatest amount of motivational force (MF). Expectancy and instrumentality are
attitudes (cognitions), whereas valence is rooted in an individual's value system.
II. Examples of valued outcomes in the workplace include, pay increases and bonuses,
promotions, time off, new assignments, recognition, etc. If management can
effectively determine what their employee values, this will allow the manager to
motivate employees in order to get the highest result and effectiveness out of the
workplace
Consider the following example. Let’s assume that you are working in the concession stand of a
movie theater. You have been selling an average of 100 combos of popcorn and soft drinks a day.
Now your manager asks you to increase this number to 300 combos a day. Would you be
motivated to try to increase your numbers? Here is what you may be thinking :
 Expectancy: Can I do it? If I try harder, can I really achieve this number? Is there a link
between how hard I try and whether I reach this goal or not? If you feel that you can achieve
this number if you try, you have high expectancy.
 Instrumentality: What is in it for me? What is going to happen if I reach 300? What are the
outcomes that will follow? Are they going to give me a 2% pay raise? Am I going to be named
the salesperson of the month? Am I going to receive verbal praise from my manager? If you
believe that performing well is related to certain outcomes, instrumentality is high.
 Valence: How do I feel about the outcomes in question? Do I feel that a 2% pay raise is
desirable? Do I find being named the salesperson of the month attractive? Do I think that
being praised by my manager is desirable? If your answers are yes, valence is positive. In
contrast, if you find the outcomes undesirable (you definitely do not want to be named the
salesperson of the month because your friends would make fun of you), valence is negative.
If your answers to all three questions are affirmative—you feel that you can do it, you will get an
outcome if you do it, and you value the reward—you are more likely to be motivated to put forth
more effort toward selling more combos
The type of motivation in this can be either intrinsic or extrinsic. For example, if someone values
rewards like money and praise then it is extrinsic motivation but if someone values sense of
achievement or pride in the work then it is intrinsic motivation
Note: This theory is based on cognitive process which is running inside your mind to decide
whether you want to take this work or not
Another way to express Expectancy theory is as given below

2.1.1 Implications of Expectancy Theory
1. In Order to Increase the Expectancy level, the managers should make sure that the work
assigned to the employees is as per their skill set or they should be trained properly before
being assigned task which requires completely new skill set
2. In order to enhance the performance-outcome tie (Instrumentality), managers should use
systems that tie rewards very closely to performance
3. Managers also need to ensure that the rewards provided are deserved and wanted by the
recipients so that employees have high valence for the assigned task
4. Crucially, Vroom's expectancy theory works on perceptions – so even if an employer thinks
they have provided everything appropriate for motivation like good salary and perks but if
the person is not much interested in monetary aspects but is rather interested in challenging
work then he/she may not be motivated by the same
Concept Check:
Ram’s Manager has asked him to take an extra responsibility of one more assignment because
Sham is going on leave. The new assignment is easier than his current assignment and Ram has
time to execute the new assignment side by side by doing overtime of 2 hours daily for next
one month. He knows that if her performs well then he would get a good raise of 12% but
otherwise he would just get a raise of 8%. However, his wife wants Ram to spend time with
her and children instead of going for this additional work. After giving a lot of thought Ram
decided to decline the offer. What does his manager offer him as per expectancy theory?
A) A raise of 20% to give him more than his expectations
B) Give him confidence that he would be able to complete the assignment by putting in
only 1 hour a day
C) By offering him 20 days paid leave after the assignment is complete
D) Talk to his wife and make her understand that company expects certain level of
commitment from employee
Answer is C:
In this question Ram rejects, the offer because he gives priority to spending time with family
rather than in office. It means Valence is low for Ram. Therefore his manager should
understand his goals/values and instead should change the reward from 12% raise to 20 days
paid leave so that he can spend some quality time with this family

2.2 Edwin Locke’s Goal Setting Theory
This theory states that goal setting is essentially linked to task performance. It states that specific
and challenging goals along with appropriate feedback contribute to higher and better task
performance.
The features of Goal setting theory are:
1. Goal Specifity: Goals should be specific like achieve 85% marks rather than achieve good
marks. It should answer who, what, when, where, why, and how of the expectations of the
goal. The more specific the goal, the more explicitly performance will be affected
2. Goal Difficulty: Goals should be challenging i.e. if a person can easily achieve 80% marks
then a more challenging goal of achieving 85 % should be set up.
3. Better feedback of results leads to better performance than lack of feedback. Self-
generated feedback—with which employees are able to monitor their own progress or
receive feedback from the task process itself—is more powerful than externally generated
feedback.
The three Personal Factors which can influence Goals Performance Relationship in Goal Setting
Theory are:
1. Goal commitment or Goal Acceptance: Goal setting theory assumes that the individual is
committed to the goal and will not leave the goal. The goal commitment is dependent on the
following factors:
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a. Goals are made open, known and broadcasted
b. Goals should be set-self by individual rather than designated.
c. Individual’s set goals should be consistent with the organizational goals and vision
d. Individual has internal Locus of control which means individual believes believe
outcomes in their life develop primarily from their own actions and abilities
2. Self-efficacy: Self- Efficacy is the belief or self-confidence, that he/she is capable of

performing task. Persons with high self-efficiency put up extra-efforts when they face
challenges. In the case of low self-efficiency level they will lessen or even abandon when
meeting challenges.
3. National Culture: The national culture can be a factor as in collectivist societies moderate
goals are preferred rather than difficult goals. In some societies when learning something
is important, goals related to performance undermine adaptation and creativity because
people become too focused on outcomes and ignore the learning process. Like in India
people tend to cram the subjects rather than learning them
Note: This Theory is also based on Cognition or the Cognitive Process
2.2.1 How do Managers Implement Goal Setting Theory?

Some managers set aggressive performance targets while some easy targets. Some don’t set goals at all
A more systematic way to utilize goal-setting is with management by objectives (MBO). MBO emphasizes
participative set goals that are tangible, verifiable, and measurable.
As mentioned in below diagram the organization’s overall objectives are translated into specific cascading
objectives for each level (divisional, departmental, and individual). But because lower-unit managers
jointly participate in setting their own goals, MBO works from the bottom up as well as from the top down.
The result is a hierarchy that links objectives at one level to those at the next. For the individual employee,
MBO provides specific personal performance objectives.
2.2.2 Advantages and Disadvantages
Advantages of Goal Setting Theory
 Goal setting theory is a technique used to raise incentives for employees to complete work quickly
and effectively.
 Goal setting leads to better performance by increasing motivation and efforts, but also through
increasing and improving the feedback quality.
Limitations of Goal Setting Theory
 At times, the organizational goals are in conflict with the managerial goals. Goal conflict has a
detrimental effect on the performance if it motivates incompatible action drift.
 Very difficult and complex goals stimulate riskier behavior.
 If the employee lacks skills and competencies to perform actions essential for goal, then the goal-
setting can fail and lead to undermining of performance.
Concept Check:
Sham’s manager is a very tough task master. He was setting goals for Sham. He called Sham and
understood his expectations, likings and interests and explained him the vision of the company for the
next year. After this discussion the manager finalized the goals for Sham taking into account his
expectations and aligning the same with the vision of the company. Unfortunately, the goals were
tough and he asked Ram to do more sales of new product as compare to sales of established product.
What is wrong in this Goal Setting Process?
a) The Goals though discussed but still not accepted by Sham
b) The Goals are very tough which are almost impossible to achieve
c) The Goals are not specific
d) No Problem in the goal setting process
Answer is C:
This question has confusing choices. One might be tempted for the option B as in the question it is
mentioned that Goals are tough. But that is not the right choice nowhere in the passage it is
mentioned that Goals are impossible to achieve. Correct answer is C because the goal is to do more
sales but there is no specific percentage (how much more?). This lacks the goals specificity
2.3 Adam’s Equity Theory

As the name suggests, is based on the notion of fairness and justice and how people form perceptions of
what this means
According to Adams, author of the theory, people judge the fairness of their work situation by comparing
the inputs that they contribute to the outputs that they receive from their job.
Inputs: This term encompasses the quality and quantity of the employee’s contributions to his or her
work. Typical inputs include time, effort, loyalty, hard work, commitment, ability, adaptability, flexibility,
tolerance, determination, enthusiasm, personal sacrifice, trust in superiors, support from co-workers and
colleagues, skill…
Outputs: Outputs are defined as the positive and negative consequences that an individual perceives a
participant has incurred as a consequence of his/her relationship with another. Outputs can be both
tangible and intangible. Typical outcomes are job security, esteem, salary, employee benefits, expenses,
recognition, reputation, responsibility, sense of achievement, praise
A person will feel angry, demotivated when
1. When people feel that their inputs far outweigh the outputs they receive in return, motivation and
productivity slumps. The greater the perceived disparity between the inputs and the outputs, the
greater the demotivation.
2. Another important aspect is that people tend to compare their output/input with the outp ut/Input
of others (references in the market). So if a co-worker or other friends in other company has been
rewarded more compared to their input then employee will feel demotivated
Based on equity theory, employees who perceive inequity will make one of six choices:
1. Change inputs (exert less effort if underpaid or more if overpaid).

2. Change outcomes (individuals paid on a piece-rate basis can increase their pay by producing a higher
quantity of units of lower quality)
3. Distort perceptions of self (“I used to think I worked at a moderate pace, but now I realize I work a
lot harder than everyone else”).
4. Distort perceptions of others (“Mike’s job isn’t as desirable as I thought”).
5. Choose a different referent (“I may not make as much as my brother-in-law, but I’m doing a lot
better than my Dad did when he was my age”).
6. Leave the field (quit the job).
2.3.1 Referents in Equity Theory

The people or situations with which person will compare his/her present situation are as follows :
1. Self-inside: An employee’s experience in a different position inside his present organization. Example
would be employee comparing his inputs/outputs in earlier junior position or his post in a different
department
2. Self-outside: An employee’s experience in a situation outside the present organization. Example
would be employee comparing his inputs/outputs with his earlier job in earlier company
3. Other-inside: Another employee or group of employees inside the employee’s present organization.
Example would be employee comparing his inputs/outputs with other people in the same
organization
4. Other-outside: Another employee or employees outside the employee’s present organization.
Example would be employee comparing his inputs/outputs with other people in his earlier
organization
2.3.2 Assumptions in Equity Theory

The three primary assumptions applied to most business applications of equity theory can be summarized
as follows:
1. Employees expect a fair return for what they contribute to their jobs, a concept referred to as the
"equity norm".
2. Employees determine what their equitable return should be after comparing their inputs and
outcomes with those of their co-workers. This concept is referred to as "social comparison".
3. Employees who perceive themselves as being in an inequitable situation will seek to reduce the
inequity either by distorting inputs and/or outcomes in their own minds ("cognitive distortion"),
by directly altering inputs and/or outputs, or by leaving the organization.
2.3.3 Implications in Workplace

1. People always try to maximize their outcomes.
2. Individuals in an inequitable relationship feel 'distressed'. Those who get too little feel
angry/humiliated, while those with too much feel guilt or shame
3. Equity Theory in business introduces the concept of social comparison. Employees who perceive
inequity will seek to reduce it, either by directly altering inputs and/or outcomes, or leaving the
organization
4. It also explains why people can be happy and motivated by their situation one day and yet with
no change to their terms and working conditions can be made very unhappy and demotivated.
They might learn that a colleague (or worse: an entire group) is enjoying a better reward-to-effort
ratio
5. Equity theory thus helps explain why pay and conditions alone do not determine motivation
because even good pay and conditions may lead to dissatisfaction if colleagues or so called
referents are getting more pay and better conditions
6. It’s based on the perception of the employees. We form perceptions of what constitutes a fair
ratio (a balance or trade) of inputs and outputs by comparing our own situation with other
'referents'. This helps to explain why people are so strongly affected by the situations (and views
and gossip) of colleagues, friends, partners etc., in establishing their own personal sense of
fairness or equity in their work situations
7. People measure the totals of their inputs and outcomes. This means a working mother may accept
lower monetary compensation in return for more flexible working hours.
8. Different employees ascribe personal values to inputs and outcomes. Thus, two employees of
equal experience and qualification performing the same work for the same pay may have quite
different perceptions of the fairness of the deal.
9. Employees are able to adjust for purchasing power and local market conditions. Thus a teacher
from Alberta may accept lower compensation than his colleague in Toronto if his cost of living is
different, while a teacher in a remote African village may accept a totally different pay structure.
10. Although it may be acceptable for more senior staff to receive higher compensation, there are
limits to the balance of the scales of equity and employees can find excessive executive pay
demotivating.
11. Staff perceptions of inputs and outcomes of themselves and others may be incorrect, and
perceptions need to be managed effectively.
12. An employee who believes he is over-compensated may increase his effort. However, he may also
adjust the values that he ascribes to his own personal inputs. It may be that he or she internalizes
a sense of superiority and actually decrease his efforts.
2.3.4 Criticism
Instead of all people reacting the same to Input/output ration, the Equity Sensitivity Construct proposes
that individuals have different preferences for equity and thus react in different ways to perceived equity
and inequity. Preferences can be expressed on a continuum from preferences for extreme under-benefit
to preferences for extreme over-benefit. Three archetypal classes are as follows:
 Benevolent, those who prefer their own input/outcome ratios to be less than those of their relational
partner. In other words, the benevolent prefers to be under-benefitted.
 Equity Sensitives, those who prefer their own input/outcome ratios to be equal to those of their
relational partner.
 Entitleds, those who prefer their own input/outcome ratios to exceed those of their relational
partner. In other words, the entitled prefers to be over-benefitted.
Concept Check:
Ram is earning 5000 per month in a company where as Sham is earning 50, 000 per month in the
same company. As per equity theory which one among them would be happier?
a) Ram would be happier than Sham as with money comes lot of tension
b) Sham would be happier as he is earning more than Ram and as per equity theory when
you earn more than your peers then you are happy
c) It cannot be determined since we do not know who Ram and Sham compare themselves
with as per equity theory
d) Both would be happy because it is not the money but the work culture and challenge in
the work which matters as per equity theory
Answer is C:
You might be confused in the choices B and C. But since its nowhere given that Ram and Sham
compare themselves with each other, so we cannot determine whether they believe they are
getting more or less compared to others
2.4 Self Determination Theory

Self-determination theory (SDT) is a macro theory of human motivation and personality that concerns
people's inherent growth tendencies and innate psychological needs. It is concerned with
the motivation behind choices people make without external influence and interference. SDT focuses on
the degree to which an individual's behavior is self-motivated and self-determined
Psychologists Edward Deci and Richard Ryan developed a theory of motivation which suggests that people
tend to be driven by a need to grow and gain fulfillment. The first assumption of self-determination
theory is that people are activity directed toward growth.
While people are often motivated to act by external rewards such as money, prizes, and acclaim (known
as extrinsic motivation), self-determination theory focuses primarily on internal sources of motivation
such as a need to gain knowledge or independence (known as intrinsic motivation).
According to self-determination theory, people need to feel the following in order to achieve such
psychological growth:
 Competence: First, the need for competence means the desire to control and master the
environment and outcome. We want to know how things will turn out and what the results are of
our actions.
 Connection or Relatedness: Second, the need for relatedness deals with the desire to “interact with,
be connected to, and experience caring for other people”. Our actions and daily activities involve
other people and through this, we seek the feeling of belongingness
 Autonomy: Autonomy means the freedom to do something rather than being controlled by
somebody
Deci and Ryan suggest that when people experience these three things, they become self-determined and
able to be intrinsically motivated to pursue the things that interest them.
2.4.1 How does it Works
How exactly do people go about fulfilling these three needs?
It is important to realize that the psychological growth described by self-determination theory does not
simply happen automatically. While people might be oriented toward such growth, it requires
continual sustenance. According to Deci and Ryan, social support is the key. Through our relationships
and interactions with others, we can either foster or thwart well-being and personal growth.
Deci also suggests that offering unexpected positive encouragement and feedback on a person's
performance on a task can increase intrinsic motivation. Why? Because such feedback helps people to
feel more competent, one of the key needs for personal growth.
What other things that can help or hinder the three elements needed for growth?
According to Deci, giving people extrinsic rewards for already intrinsically motivated behavior can
undermine autonomy. As the behavior becomes increasingly controlled by the external rewards, people
begin to feel less in control of their own behavior and intrinsic motivation is diminished.
2.4.2 Implications
1. SDT begins by embracing the assumption that all individuals have natural, innate, and constructive
tendencies to develop an ever more elaborated and unified sense of self. That is, we assume people
have a primary propensity to forge interconnections among aspects of their own psyches as well as
with other individuals and groups in their social worlds
2. Social environments can, according to this perspective, either facilitate and enable the growth
and integration propensities with which the human psyche is endowed, or they can disrupt,
forestall, and fragment these processes resulting in behaviors and inner experiences that
represent the darker side of humanity
Concept Check:
“It’s strange,” said Marcia. “I started work at the Humane Society as a volunteer. I put in 15 hours a
week helping people adopt pets. And I loved coming to work. Then, 3 months ago, they hired me full-
time at $11 an hour. I’m doing the same work I did before. But I’m not finding it as much fun.” Which
theory according to you can explain this?
A) Self-Efficacy theory
B) Self Determination theory
C) Goal Setting theory
D) Expectancy theory
Answer is B:
The answer is Self-Determination theory because she was enjoying the work before she started
getting money. So extrinsic rewards were introduced for the task for which she had intrinsic
motivation. Extrinsic rewards for intrinsically motivated tasks reduces the motivation and the
same has happened in this case
2.5 Cognitive Evaluation Theory

Cognitive Evaluation theory is a sub theory of SDT which is designed to explain the effects of external
consequences on internal motivation. As per this theory the introduction of external rewards for an
intrinsically motivated task can undermine the motivation for that task. For example, if a person likes to
write code in his office but after certain time he is proposed to be given money for writing certain lines of
code then he will not feel that much motivated because there is now extrinsic reward attached to the
same
This theory suggests that there are actually two motivation systems; intrinsic and extrinsic those
correspond to two kinds of motivators. One or the other of these may be a more powerful motivator for
a given individual
1. Intrinsic Motivators: Achievement, responsibility and competence — motivators that come from
the actual performance of the task or job — the intrinsic interest of the work.
2. Extrinsic Motivators: Pay, promotion, feedback, working conditions — things that come from a
person’s environment, controlled by others.
According to CET intrinsic motivation can be facilitating or undermining, depending on the social and
environmental factors in play. As pet this theory interpersonal events, rewards, communication and
feedback that gear towards feelings of competence when performing an activity will enhance intrinsic
motivation for that particular activity.
However, this level of intrinsic motivation is not attained if the individual doesn’t feel that the
performance itself is self- determined or that they had the autonomous choice to perform this activity.
So, for a high level of intrinsic motivation two psychological needs have to be fulfilled:
 The first is competence so that the activity results in feelings of self-development and efficacy.
 The second is the need for autonomy that performance of the chosen activity was self-initiated or self-
determined.
Thus for CET theory to hold true, motivation needs to be intrinsic and have an appeal to the individual. It
also implies that intrinsic motivation will be enhanced or undermined depending on whether the needs
for autonomy and competence are supported or thwarted respectively.
2.5.1 Implications
Intrinsically motivated individuals perform for their own achievement and satisfaction. If they come to
believe that they are doing some job because of the pay or the working conditions or some other extrinsic
reason, they begin to lose motivation because they feel they are not autonomous anymore and instead
they are being controlled by external rewards. So the presence of powerful extrinsic motivators can
actually reduce a person’s intrinsic motivation, particularly if the extrinsic motivators are perceived by the
person to be controlled by people.
A boss who is always dangling a reward for performance and is asking to meet deadlines will turn off the
intrinsically motivated people. Intrinsically motivated people
1. Should not be controlled
2. Should not be tried to be motivated through money, promotion etc.
3. Should be given challenging tasks which give them sense of achievement
2.6 Reinforcement Theory

The previous theories discussed follow a cognitive approach, proposing that an individual’s purposes
direct his or her action. Reinforcement theory, in contrast, takes a behavioristic view, arguing that
reinforcement conditions behavior. Reinforcement theorists see behavior as environmentally caused. You
need not be concerned; they would argue, with internal cognitive events but rather what controls
behavior are reinforcers—any consequences that, when they immediately follow responses, increase the
probability that the behavior will be repeated. For example, when a dog jumps he will be given a biscuit,
this will make him repeat this behavior since he got a reward for doing that. Over the time this behavior
will get entrenched in his daily routine or in other words he will get conditioned to such a behavior
Reinforcement theory ignores the inner state of the individual and concentrates solely on what happens
when he or she takes some action. Because it does not concern itself with what initiates behavior, it is
not, strictly speaking, a theory of motivation. But it does provide a powerful means of analyzing what
controls behavior, and this is why we typically consider it in discussions of motivation
Reinforcement theory is the process of shaping behavior by controlling the consequences of the behavior.
In reinforcement theory a combination of rewards and/or punishments is used to reinforce desired
behavior or extinguish unwanted behavior. Any behavior that elicits a consequence is called operant
behavior, because the individual operates on his or her environment. Reinforcement theory concentrates
on the relationship between the operant behavior and the associated consequences, and is sometimes
referred to as operant conditioning.
Behavioral theories of learning and motivation focus on the effect that the consequences of past behavior
have on future behavior. Reinforcement theory suggests that individuals can choose from several
responses to a given stimulus, and that individuals will generally select the response that has been
associated with positive outcomes in the past. E.L. Thorndike articulated this idea in 1911, in what has
come to be known as the law of effect. The law of effect basically states that, all other things being equal,
responses to stimuli that are followed by satisfaction will be strengthened, but responses that are
followed by discomfort will be weakened.
1. Positive Reinforcement: This implies giving a positive response when an individual shows positive
and required behavior. For example - Immediately praising an employee for coming early for job.
This will increase probability of outstanding behavior occurring again. Positive reinforcement
stimulates occurrence of a behavior. It must be noted that more spontaneous is the giving of
reward, the greater reinforcement value it has.
2. Negative Reinforcement: This implies rewarding an employee by removing negative / undesirable

consequences. Both positive and negative reinforcement can be used for increasing desirable /
required behavior. For example, a company has policy of transferring the employees every 2 years
and employees do not like being transferred. If such a company gives the option to top performers
of not being transferred, then such a thing would act as negative reinforcer where negative
consequence is decreased and hence behavior is reinforced. These can be of two types.
First one is escape where people engage into behavior to remove the bad outcome. For example,
that you will not be required to work on weekends if you achieve the sales target. Employee would
do this to make his weekends free and hence this would be an example of Escape
Second one is Active Avoidance where in you engage into a behavior to avoid bad outcome.
Suppose you study for the exam to avoid bad grades is an example of Active Avoidance
3. Punishment: Punishment attempts to decrease the probability of specific behaviors being

exhibited. Punishment is the administration of an undesirable behavioral consequence in order
to reduce the occurrence of the unwanted behavior. Punishment is one of the more commonly
used reinforcement-theory strategies, but many learning experts suggest that it should be used
only if positive and negative reinforcement cannot be used or have previously failed, because of
the potentially negative side effects of punishment. An example of punishment might be
demoting an employee who does not meet performance goals or suspending an employee
without pay for violating work rules. These can be of two types
First One is Positive Punishment where in you give punishment after the bad behavior of the child
like spanking a child after he failed
Second one is Negative Punishment where in you remove something good after the bad behavior
like taking the video game away from the child
4. Extinction: It implies absence of reinforcements. In other words, extinction implies lowering the
probability of undesired behavior by removing reward for that kind of behavior. For instance - if
an employee no longer receives praise and admiration for his good work, he may feel that his
behavior is generating no fruitful consequence. Extinction may unintentionally lower desirable
behavior
2.6.1 Some More Points on the Reinforcement Theory
1. The increase in behaviour is independent of (i.e. not related to) whether or not the organism finds
the reinforcer to be pleasant or aversive. Example: A child is given detention for acting up in
school, but the frequency of the bad behaviour increases. In this case detention was a punishment
and hence should have decreased the bad behaviour but instead started doing more of bad things.
So such a detention in fact become positive reinforcer for child
2. Some reinforcement can be simultaneously positive and negative, such as a drug addict taking
drugs for the added euphoria (a positive feeling) and eliminating withdrawal symptoms (which
would be a negative feeling). Or, in a warm room, a current of external air serves as
positive reinforcement because it is pleasantly cool and as negative reinforcement because it
removes uncomfortable hot air
Concept Check:
A person in office was not performing well as he was not able to meet the sales target. He was
performing so badly that there was a chance of him being shown the door. He was very worried
about this situation. He daily starts going to his boss’ house with some flowers and sweets so
that he can build a strong relationship with the boss. He was told by his colleague Sham that
he also did the same 2 years back and it was a successful trick. Each day he takes sweets his
boss’ he gets more and friendlier with him. What kind of reinforcement it is?
A) Escape
B) Active Avoidance
C) Positive Punishment
D) Negative Punishment
Answer is B:
The answer is Active Avoidance. This can be confusing between Escape and Active Avoidance.
But escape is to end the bad outcome which is already happening. Avoidance is to avoid a
possible bad outcome by doing a correct behavior. The person is befriending his boss to avoid
a possible bad outcome of him being fired
2.7 Clark Hull’s Drive Reduction Theory
The theory was created by behaviorist Clark Hull and further developed by his collaborator Kenneth
Spence. This theory is based on concept of Homeostasis. Homeostasis is the state when all your biological
needs are met. For example, if you are feeling hungry then you are in state of lack of Homeostasis. You
can reach back to the state of Homeostasis by eating food and reducing your hunger
1. The lack of homeostasis will create some biological needs. Biological needs mean needs for the body.
For example, when your stomach is empty then need for food will be created
2. This need for food will create state of tension (psychological drive) to fulfill the need. This state is
called drive. Hunger and thirst are examples of drives
3. The person will be motivated to act to reduce the tension. The action would be drive reducing
behavior i.e. the person will eat something to reduce hunger
4. The reduction of the drive acts as a reinforcement for that behavior. This reinforcement increases the
likelihood that the same behavior will occur again in the future when then same need arises. For
example, if a person’s hunger stops by eating pizza then his behavior to eat pizza on being hungry will
get reinforced and in future also he will eat pizza on being hungry
Difference between Instinct Theory of Motivation and Drive Reduction Theory

Though both the theories mention that it is the biological (physical) needs that motivate to behave in
certain way but instinct theory of motivation does not take into account learned behavior by
reinforcement. For example, instinct theory might say that is a normal instinct for a person to eat food
(Pizza) on being hungry. But for example if the person falls ill every time by eating the pizza then he would
stop eating pizza even when he is hungry. The stopping of eating pizza is explained by the conditioned
behavior in which person’s behavior in not reinforced by eating pizza
2.7.1 Criticism of Drive Reduction Theory

1. One of the biggest problems with Hull's drive reduction theory is that it does not account for
how secondary reinforcers reduce drives. Unlike primary drives such as hunger and thirst,
secondary reinforcers do nothing to directly reduce physiological and biological needs. Take
money, for example. While money does allow you to purchase primary reinforcers, it does nothing
in and of itself to reduce drives. Despite this, money still acts as a powerful source of
reinforcement
2. Another major criticism of the drive reduction theory of learning is that it does not explain
why people engage in behaviors that do not reduce drives. For example, people often eat
when they’re not hungry or drink when they’re not thirsty. In some cases, people actually
participate in activities that increase tension such as sky-diving or bungee jumping. Why
would people seek out activities that do nothing to fulfill biological needs and that actually
place them in considerable danger? Drive-reduction theory cannot account for such
behaviors.
Note: Both Reinforcement theory and Drive Reduction Theory are behavioristic approaches to motivation
rather than cognitive which all other theories listed in this chapter are
Concept Check
Which of the following will be a criticism of Drive Reduction Theory?
a. Person drinking water after running for 2 hours
b. Person eating breakfast after keeping the fast previous day
c. Person going for Bungee jumping on a holiday
d. Person going to sleep after hard day’s work
Answer is C:
Here options a, b and d talk about person fulfilling the innate needs. But option C is about enjoyment
and also increasing the danger as Bungee jumping is dangerous activity. Drive reduction theory does
not talk about increasing the enjoyment which is a not an innate need and that too when it is dangerous
2.8 Self-Efficacy Theory

Before we discuss Self-Efficacy theory lets discuss the Social Learning Theory by Albert Bandura. The Social
Learning theory gives emphasis on the fact that is not only through reinforcements that people can learn
but also through observational learning. Concept of self-efficacy is one of the themes in social learning
theory
For example, reinforcement theory would mean that if you touch a wire and you get a current then it will
act as punishment and you will tend not to touch the wire in future. But as per social learning theory it is
not necessary that you yourself need to touch the wire to know that you need to avoid it. Even if other
person touches the wire and gets the current in front of you, you will realize that it’s not safe to touch the
wire. Hence you learned something through observation which is called observational learning
The consequence of observational learning is that teachers should act as good role models because
children would learn by observing them. Hence teacher should act in such a way so as to help student gain
self-efficacy
What is self-Efficacy?
According to Albert Bandura, self-efficacy is "the belief in one’s capabilities to organize and execute the
courses of action required to manage prospective situations." In other words, self-efficacy is a person’s
belief in his or her ability to succeed in a particular situation. Bandura and others have found that an
individual’s self-efficacy plays a major role in how goals, tasks, and challenges are approached.
People with a strong sense of self-efficacy:
 View challenging problems as tasks to be mastered

 Develop deeper interest in the activities in which they participate
 Form a stronger sense of commitment to their interests and activities
 Recover quickly from setbacks and disappointments
People with a weak sense of self-efficacy:
 Avoid challenging tasks

 Believe that difficult tasks and situations are beyond their capabilities
 Focus on personal failings and negative outcomes
 Quickly lose confidence in personal abilities
2.8.1 Factors Affecting Self-Efficacy

Bandura identifies four factors affecting self-efficacy.
1. Experience, or "enactive attainment" – The experience of mastery is the most important

factor determining a person's self-efficacy. Success raises self-efficacy, while failure lowers
it.
2. Modeling, or "vicarious experience" – Modeling is experienced as, "If they can do it, I can do
it as well". When we see someone succeeding, our own self-efficacy increases; where we see
people failing, our self-efficacy decreases. This process is most effectual when we see
ourselves as similar to the model. Although not as influential as direct
experience, modeling is particularly useful for people who are particularly unsure of
themselves.
3. Social persuasion or Verbal persuasion – Social persuasion generally manifests as direct
encouragement or discouragement from another person. Discouragement is generally more
effective at decreasing a person's self-efficacy than encouragement is at increasing it.
4. Physiological factors – In stressful situations, people commonly exhibit signs of distress:
shakes, aches and pains, fatigue, fear, nausea, etc. Perceptions of these responses in oneself
can markedly alter self-efficacy. Getting 'butterflies in the stomach' before public speaking
will be interpreted by someone with low self-efficacy as a sign of inability, thus decreasing
self-efficacy further, where high self-efficacy would lead to interpreting such physiological
signs as normal and unrelated to ability. It is one's belief in the implications of physiological
response that alters self-efficacy, rather than the physiological response itself.
2.8.2 How does Self- Efficacy Impacts Motivation?

High self-efficacy can affect motivation in both positive and negative ways. In general, people with
high self-efficacy are more likely to make efforts to complete a task, and to persist longer in those
efforts, than those with low self-efficacy. The stronger the self-efficacy or mastery expectations, the
more active the efforts. However, those with low self-efficacy sometimes experience incentive to
learn more about an unfamiliar subject, where someone with a high self-efficacy may not prepare as
well for a task
Self-efficacy has several effects on thought patterns and responses:
 Low self-efficacy can lead people to believe tasks to be harder than they actually are. This often
results in poor task planning, as well as increased stress.
 People become erratic and unpredictable when engaging in a task in which they have low self -
efficacy.
 People with high self-efficacy tend to take a wider view of a task in order to determine the best
plan.
 Obstacles often stimulate people with high self-efficacy to greater efforts, where someone with
low self-efficacy will tend toward discouragement and giving up.
 A person with high self-efficacy will attribute failure to external factors, where a person with low
self-efficacy will blame low ability. For example, someone with high self-efficacy in regards to
mathematics may attribute a poor test grade to a harder-than-usual test, illness, lack of effort, or
insufficient preparation. A person with a low self-efficacy will attribute the result to poor
mathematical ability.
2.8.3 Increasing Self-Efficacy in Others

The best way for a manager to use verbal persuasion is through the Pygmalion effect, a term based on a
Greek myth about a sculptor (Pygmalion) who fell in love with a statue he carved. The Pygmalion effect is
a form of self-fulfilling prophecy in which believing something can make it true. Here, it is often used to
describe “that what one person expects of another can come to serve a self-fulfilling prophecy.”
An example should make this clear. In studies, teachers were told their students had very high IQ scores
when, in fact, they spanned a range from high to low. Consistent with the Pygmalion effect, the teachers
spent more time with the students they thought were smart, gave them more challenging assignments,
and expected more of them—all of which led to higher student self-efficacy and better achievement
outcomes.59 This strategy has been used in the workplace too, with replicable results and enhanced
effects when leader-subordinate relationships are strong
2.8.4 Relationship between Goal-Setting theory and Self-Efficacy Theory

Goal-setting theory and self-efficacy theory don’t compete; they complement each other. Employees
whose managers set difficult goals for them will have a higher level of self-efficacy and set higher goals
for their own performance. This is because setting difficult goals for people communicates your
confidence in them.
Concept Check: Ram is an intelligent guy and he is always high on confidence that he will achieve
his goals though he may have to work hard on it. He prepared for the IIT examination and worked
really hard for the same. On the exam day he was able to score only 50 out of 100. What could be
the reason that Ram will attribute for scoring lesser marks?
A) He will think that maybe he is not intelligent

B) He will think that maybe he did not work hard for the exam
C) He will think that IIT exam was really tough this year
D) He will think that it’s his bad luck which always prevents him from scoring more
Answer is C:
Since Ram is high on self efficacy which means that he will attribute his failure to harder than usual
test rather than any doubt over his ability
2.9 Hackman and Oldham job characteristics model
The job characteristics model, designed by Hackman and Oldham, is based on the idea that the task itself
is key to employee motivation. Specifically, a boring and monotonous job stifles motivation to perform
well, whereas a challenging job enhances motivation
It states that there are five core job characteristics (skill variety, task identity, task significance, autonomy,
and feedback) which impact three critical psychological states (experienced meaningfulness, experienced
responsibility for outcomes, and knowledge of the actual results), in turn influencing work outcomes (job
satisfaction, absenteeism, work motivation, etc.).
2.9.1 What Causes High Motivation

Hackman and Oldham’s job characteristics theory proposes that high motivation is related to experiencing
three psychological states whilst working:
1. Experienced Meaningfulness of the Work: The degree to which the jobholder experiences the work
as intrinsically meaningful and can present his or her value to other people and/or the external
environment.
2. Experienced Responsibility for Outcome of the Work: The degree to which the worker feels he or she
is accountable and responsible for the results of the work
3. Knowledge of Results of the Work Activities: This is important for two reasons. Firstly, to provide the
person knowledge on how successful their work has been, which in turn enables them to learn from
mistakes. The second is to connect them emotionally to the customer of their outputs, thus giving
further purpose to the work (e.g. I may only work on a production line, but I know that the food rations
I produce are used to help people in disaster areas, saving many lives).
2.9.2 Job Characteristics which help us in reaching these Psychological States
A person may not always experience this psychological states unless and until the job assigned to him has
certain characteristics. In turn, each of these critical states are derived from certain characteristics of the
job
1. Meaningfulness of work
The work must be experienced as meaningful (his/her contribution significantly affects the overall
effectiveness of the organization). This is derived from:
o Skill variety
Using an appropriate variety of your skills and talents: too many might be overwhelming, too
few, boring.
o Task Identity
Being able to identify with the work at hand as more whole and complete, and hence enabling
more pride to be taken in the outcome of that work (e.g. if you just add one nut to one bolt in
the same spot every time a washing machine goes past it is much less motivating than being the
person responsible for the drum attachment and associated work area (even as part of a group).
o Task Significance
Being able to identify the task as contributing to something wider, to society or a group over
and beyond the self. For example, the theory suggests that I will be more motivated if I am
contributing to the whole firm’s bonus this year, looking after someone or making something
that will benefit someone else. Conversely I will be less motivated if I am only making a faceless
owner wealthier, or am making some pointless item (e.g. corporate give-away gifts).
2. Responsibility
Responsibility is derived from autonomy, as in the job provides substantial freedom, independence
and discretion to the individual in scheduling the work and in determining the procedures to be
used in carrying it out)
3. Knowledge of outcomes
This comes from feedback. It implies an employee awareness of how effective he/she is converting
his/her effort into performance. This can be anything from production figures through to customer
satisfaction scores. The point is that the feedback offers information that once you know, you can
use to do things differently if you wish. Feedback can come from other people or the job itself.
2.9.3 Outcomes
The psychological states discussed above if achieved leads to following outcomes
1. High Internal Work Motivation
2. High Growth Satisfaction
3. High general Job Satisfaction
4. High Work Effectiveness
2.9.4 Moderators
Moderators can impact the relationship between Job Characteristics and Psychological State or between
a Psychological and an Outcome. There are three moderators as per this theory
 Growth Need Strength (GNS): GNS is the strength of a person's need for personal accomplishment,
learning, and development”. The theory posits that Growth Need Strength moderates both the
relationship of core job characteristics and psychological states, and the relationship between
psychological states and outcomes. For example, if the person is given autonomy to do his own work
but person is not self-driven and does not like the autonomy and instead likes working in shadow of
someone then such a person will never realize the psychological state of Responsibility.
 Knowledge and Skill: The level of knowledge and skill the worker possesses can moderate the
relationship between the mediators and the job characteristics and outcomes. For motivating jobs,
adequate knowledge and skill lead to experiencing the critical psychological states and better
outcomes, while insufficient knowledge and skill discourage the psychological states and result in
more negative outcomes. For unmotivating jobs, they don’t allow the worker to experience the
psychological states at all, thus knowledge and skill have no effect.
 Context Satisfaction: The context of the job also affects employees’ experience. The authors suggest
that when workers are satisfied with things like their managers, pay, co-workers, and job security
they respond more positively to highly motivating jobs and less positively when they are not satisfied.
The reason being that they must invest huge energy in adjusting to bad job context (like a bad
manager) which distracts from the richness otherwise inherent in the job
2.9.5 Implications
1. Varying work of your employees to enable skill variety. Job Enrichment and Job Rotation can be
followed
2. Assigning work to groups to increase the wholeness of the product produced and give a group to
enhance significance
3. Delegate tasks to their lowest possible level to create autonomy and hence responsibility
4. Connect people to the outcomes of their work and the customers that receive them so as to
provide feedback for learning
Concept Check: Mr. Pillai is working in packaging department. He is a very responsible and hard working
guy. His manager rotates his job and puts him in the finance department where also he was able to
perform well and in fact better than before. His manager was happy that he was able to apply the Job
characteristic model and motivate Pillai to perform better. Which according to you is the psychological
state that would have been enhanced to higher level by putting Mr. Pillai in the finance department
A) Meaningfulness of Wok
B) Context Satisfaction
C) Responsibility
D) Knowledge of Outcome
Answer is A. Job rotation means adding a new skill which promotes meaningfulness to work. Hence his
state for meaningfulness to work would have enhanced with this. Responsibility is also a close option But
A is more appropriate
2.10 Porter and Lawler Model of Motivation
Lyman Porter and Edward Lawler came up with a comprehensive theory of motivation, combining the
various aspects. Porter and Lawler's model is a more complete model of motivation. This model is based
on four basic assumptions about human behavior:
1. As mentioned above, it is a multivariate model. According to this model, individual behavior is

determined by a combination of factors in the individual and in the environment.
2. Individuals are assumed to be rational human beings who make conscious decisions about their
behavior in the organizations
3. Individuals have different needs, desires and goals.
4. On the basis of their expectations, individuals decide between alternative behaviors and such
decided behavior will lead to a desired outcome.
Porter and Lawler's theory is an improvement over Vroom's expectancy theory. They say that
motivation does not equal satisfaction or performance. The main point in Porter and Lawler's model is
that effort or motivation does not lead directly to performance. It is, in fact, medicated by abilities and
traits and by role perceptions
The Various Elements of Porter and Lawler Model

1. Effort
2. Performance
3. Satisfaction
1. Effort: Effort refers to the amount of energy an employee exerts on a given task. How much effort
an employee will put in a task is determined by two factors:
I. Value of reward: First of all, people try to figure out whether the rewards that are likely to be
received from doing a job will be attractive to them. This is referred to as valence in Vroom’s
theory. A person who is looking for more money, for example, extra vacation time may not
be an attractive reward
II. Perception of effort-reward probability: In addition, before people put forth any effort, they
will also try to assess the probability of a certain level of effort leading to a desired level of
performance and the possibility of that performance leading to certain kinds of rewards.
Based on the valence of the reward and the effort reward probability, people can decide to
put in certain level of work effort. Effort Reward probability is same as Expectancy and
Instrumentality in Vroom’s Expectancy theory of motivation
2. Performance: One's effort leads to his/her performance. However, the amount of performance
is determined by the amount of labor and the ability and role perception of the employee. The
expected level of performance will depend upon the amount of effort, the abilities and traits of
the individual and his role perceptions. Abilities include knowledge, skills and intellectual capacity
to perform the job. Traits which are important for many jobs are endurance and goal directedness.
Thus, abilities and traits will moderate the effort- performance relationship. Thus, if an employee
possesses less ability and/or makes wrong role perception, his/her performance may be low in
spite of his great efforts
3. Satisfaction: Performance leads to satisfaction. The level of satisfaction depends upon the
amount of rewards achieved. If the amount of actual rewards meets or exceed perceived
equitable rewards, the employee will feel satisfied. On the contrary, if actual rewards fall short of
perceived ones, he/she will be dissatisfied. Rewards may be of two kinds - intrinsic and extrinsic
rewards. Examples of intrinsic rewards are such as a sense of accomplishment and self-
actualization. Extrinsic rewards may include working conditions and status. A fair degree of
research supports that the intrinsic rewards are much more likely to produce attitudes about
satisfaction that are related to performance
Implications
1. They recommended that the managers should carefully reassess their reward system and structure.
The effort-performance-reward-satisfaction should be made integral to the entire system of
managing men in organization
2. Match the abilities and traits of individuals to the requirements of the job by putting the right
person on the right job.
3. Managers should carefully explain to the subordinates their roles or what they must do to be
rewarded. Then he must make sure that they understand it.
4. Prescribe in concrete terms the actual performance levels expected of the individuals and these
levels should be made attainable.
5. Make sure that the rewards dispensed are valued by the employees. Thus, he should find out what
rewards are attractive to the employee and see if such rewards can be given to him
Concept Check: Mr. Sharma believes in hard work and he enjoys the rewards for his performance.
Recently his new manager joined in. His new manager gave him a new assignment which was a very rare
and difficult assignment. Mr. Sharma also did not have any idea about the rewards he would be getting
for this assignment. Which of the following would be directly and negatively impacted due to this?
A) The amount of effort Mr. Sharma will put in

B) The performance guarantees irrespective of Mr. Sharma putting all the efforts
C) The satisfaction surety in spite of completing the assignment
D) NOTA
Answer is A. The choices are confusing. But as per this theory it is clearly stated that amount of effort put
in depends on the value of reward that is on the offer. Since reward is not known it would directly impact
the effort put in
2.11 Hawthorne Effect

The Hawthorne Effect was first described by Henry A. Landsberger in 1950 who noticed a tendency for
some people to work harder and perform better when they were being observed by researchers.
The Hawthorne Effect is named after a series of social experiments on the influence of physical conditions
on productivity at Western Electric’s factory at Hawthorne, Chicago in the 1920s and 30s.
The researchers changed a number of physical conditions over the course of the experiments including
lighting, working hours and breaks. In all cases, employee productivity increased when a change was
made. The researchers concluded that employees became motivated to work harder as a response to
the attention being paid to them, rather than the actual physical changes themselves .
2.11.1 How to apply it to the workplace
The Hawthorne Effect studies suggest that employees will work harder if they know they’re being
observed. While it does not recommend hovering over your employees watching them all day, you could
try providing regular feedback, letting your team know that you know what they’re up to and how they’re
doing.
Showing your employees that you care about them and their working conditions may also motivate them
to work harder. Encourage your team to give you feedback and suggestions about their workspace and
development.
2.12 Three Dimensional Theory of Attribution

Bernard Weiner (born 1935) is an American social psychologist known for developing a form
of attribution theory which explains the emotional and motivational entailments of academic success
and failure
Bernard Weiner proposed a theory suggesting that a person's own attributions in attempt to explain their
success or failure determines the effort they are willing to exert in the future. Affective and cognitive
assessment influences the behavior in the future when similar situations are experienced.
Weiner pinpointed a specific attribution that aspects like luck, effort, etc, are not as important as the
characteristics of the attribution. This was described as the three casual dimensions, which is the reason
for Weiner’s Attribution model being called the Three-Dimensional Model.
2.12.1 Three Dimensions of Weiner’s Model
Dimension Association with Emotional Response
Locus: This dimension is related to feeling of

Locus dimension refers to the perception of the cause of any event as pride and self-esteem. People feel the
sense of pride in their accomplishment,
internal or external.
especially when they believe that it was
their effort which lead them to success.
If a learner believes that she failed her math test because she lacked
inability, she is referring to her internal attribution. On the other hand, if
she blames the teacher to be incompetent, she is referring to the external
attribution.
Stability: In case of unstable attributions, this

Stability dimension refers to whether the cause of the event is stable or dimension is related to feelings of
unstable across time and situations hopelessness. In contrast, for the stable
causes, a learner believes that there can
From the previous example, if she believes that she failed her math exam be different outcomes in the future.
because of her inability in math, the cause is stable. The cause is more
stable if she believes that her lack of ability is permanent. On the other
hand, if she believes that had she not been sick, she could have aced the
test, the cause is unstable, as illness is a temporary factor.
Attributions to permanent factors or stable causes are more likely to lead

the learner towards success if the learner experiences success. However,
in case of failure, attributions to stable causes are likely to decrease the
morale and expectations of the learner in the future
Controllability: Guilt and shame are the kind of emotions

experienced in this dimension. Learners
Controllability dimension refers to whether or not the cause of any event who believe they failed because of their
lack of effort experience a sense of guilt.
is under the control of the learner.
On the other hand, those who deem
themselves unworthy are more likely to
From the aforementioned examples; if she believes that she could have experience the feelings of shame or similar
done better in the test had she practiced more, the cause is controllable. emotions.
On the other hand, if she doubts her ability in math, the cause is
uncontrollable. Environmental or external attributions cannot be
considered as controllable.
2.12.2 Implication in Work Place
Weiner’s Three-Dimensional theory of attribution has implications for employee feedback.
1. Make sure you give your employees specific feedback, letting them know that you know they can
improve and how they can about it. This, in theory, will help prevent them from attributing their
failure to an innate lack of skill and see that success is controllable if they work harder or use
different strategies.
2. You could also praise your employees for showing an improvement, even if the outcome was still
not correct. For example, you might praise someone for using the correct methodology even
though the results weren’t what you wanted. This way, you are encouraging employees to
attribute the failure to controllable factors, which again, can be improved upon in the future.
Concept Check: Mr. Rahul Mandhi is serious politician but people tend to always make fun of him. He
recently lost in the election by heavy margin. He thinks that though he lost but it was due to the BJP Wave
which did him in. Also he is of the opinion that this wave will change in next 10 years. But till the next 10
years he cannot do much because the Wave has penetrated a lot and Mr. Bodi is not an easy person to
fight with. As per Weiner’s Model of attribution which of the following is true?
A) Rahul thinks Cause to be with external locus, unstable reasons and Uncontrollable
B) Rahul thinks Cause to be with external locus, unstable reasons and Controllable
C) Rahul thinks Cause to be with external locus, stable reasons and Uncontrollable
D) Rahul thinks Cause to be with external locus, stable reasons and Controllable
Answer is A. The choices are confusing.

But since he feels Modi won due to BJP wave the locus is external
He thinks situation will change in 10 years so cause is Unstable
He thinks for next 10 years he cannot do anything so he cannot control it
2.12.3 Argyris’s Theory of Motivation

Argyris has developed his motivation theory based on proposition how management practices
affect the individual behaviour and growth. In his view, the seven changes taking place in an
individual personality make him/her a mature one. In other words, personality of individual
develops and he becomes immature to mature. A mature person is characterized for being active,
independent, self-confident and self-controlled. On the contrary, an immature person is passive,
dependent, has lack of confidence and feels need of control by others .
Argyris views that immaturity exists in individuals mainly because of organizational setting and
management practices such as task specialization, chain of command, unity of direction, and span of
management. According to Argyris, whenever an employee with high maturity lev el is before a
situation like this tends to take one of three attitudes:
 Escape: reflects into resignation, absenteeism, etc.;

 Fight: through structures like unions or even through an informal organization;
 Adaptation: is the most common reaction and consists in developing an apathy and indifference
attitude, in which the monthly salary represents compensation for the “punishment” that the
work represents.
In order to make individuals grow mature, he proposes gradual shift from the existing pyramidal
organization structure to more equal and informal system; from existing management syst em to the
more flexible and participative management. He states that such situation will satisfy not only their
physiological and safety needs, but also will motivate them to make ready to make more use of their
potential in accomplishing organizational goals.
2.12.4 Single Loop and Double Loop Learning
Chris Argyris also states that, in contrast to double-loop learning, which questions underlying
assumptions, single-loop learning, which solves problems superficially and symptomatically, fails to
address the real issues that make companies ineffective. Companies should give more stress on double
loop learning so that people have deep understanding of the issues.
Argyris theory also asserts that open communication within an organization, normally considered a
good thing, can block learning and hinder progress if it's based on defensiveness, denial of real
problems, inability to face tough issues and refusal to examine one's own attitudes and contributions
to the problem.
3 Concept of Morale
Morale (also known as esprit de corps) is the capacity of a group's members to maintain belief in an
institution or goal, particularly in the face of opposition or hardship. Morale is often referenced by
authority figures as a generic value judgment of the willpower, obedience, and self-discipline of a group
tasked with performing duties assigned by a superior. Morale is usually assessed at a collective, rather
than an individual level. According to Alexander H. Leighton, "morale is the capacity of a group of people
to pull together persistently and consistently in pursuit of a common purpose".
In nut shell morale is the degree of enthusiasm and willingness with which the members of a group work
to perform their assignments. Thus morale is an indicator of attitudes of workers towards their jobs,
superiors and environment.
It is the sum total of employee’s attitudes, feelings and sentiments towards these variables. Morale is a
bye-product of motivation and group relationships in the organization. It is a mental process which once
started permeates in the entire group creating a mood which results in the formation of common attitude.
We can never say Morale or No Morale but instead it would be High or Low Morale
High morale - High morale implies determination at work- an essential in achievement of management
objectives. High morale results in:
 A keen teamwork on part of the employees.

 Organizational Commitment and a sense of belongingness in the employee’s mind.
 Immediate conflict identification and resolution.
 Healthy and safe work environment.
 Effective communication in the organization.
 Increase in productivity.
 Greater motivation.
Low morale - Low morale has following features:
 Greater grievances and conflicts in organization.

 High rate of employee absenteeism and turnover.
 Dissatisfaction with the superiors and employers.
 Poor working conditions.
 Employee’s frustration.
 Decrease in productivity.
 Lack of motivation.
For this, managers should have constant knowledge of the thinking and attitudes of the employees
towards their work and the organization and should carefully note the changes in their behaviour and
judge the factors responsible for change in the attitude of employees. It should be noted that high morale
cannot be purchased, it has to be built.
It can be created only by introducing into the work situation certain conditions which are favorable to its
development. High morale is not the cause of good human relations. High morale is the result of good
human relations; it is the result of good motivation, respect and dignity of the individual, relation of the
individual difference, good leadership, effective communication, participation, counseling and many other
human relation practices
3.1 Difference Between Motivation and Morale

Though motivation and morale are closely related concepts, they are different in following ways:
1. Higher motivation often leads to higher morale of employees, but high morale does not essentially
result in greatly motivated employees as to have a positive attitude towards all factors of work
situation may not essentially force the employees to work more efficiently.
2. Motivation acquires primary concern in every organization, while morale is a secondary

phenomenon because high motivation essentially leads to higher productivity while high morale
may not necessarily lead to higher productivity.
3. While motivation is an individual concept, morale is a group concept. Thus, motivation takes into
consideration the individual differences among the employees, and morale of the employees can
be increased by taking those factors into consideration which influence group scenario or total
work settings.
3.2 Factors Affecting Morale

The employee morale is a very complex phenomenon and is influenced by many factors.
On the basis of all these classifications, the important factors in the determination of levels of morale are
as describe below:
1. The Organization: The first factor affecting the employee morale is the organization itself. The
organization influences the worker’s attitudes to their jobs.
2. The Nature of Work : The nature of the work, the worker is expected to perform also affects his attitude
towards the job as well as his morale. If the employee is expected to perform routine or specialized jobs,
he will feel bored and alienated.
3. The Level of Job Satisfaction : The level of satisfaction, a worker derives from his job is another
determinant of morale. If the job factors and the satisfaction they bring are perceived to be favorable by
the employee, then morale will tend to be higher than if these factors seem to be unfavorable. The job
factors include the factors such as opportunities for promotions, job security, steadiness of employment,
opportunities to learn the job and to use his own ideas, pay working conditions, recognition,
cooperativeness of co-workers, group relationship etc.
4. The Level of Supervision: The level of supervision received by an employer has a tremendous
Influence on his morale. High rate of employee turnover indicates that the leadership is ineffective. On
the other hand, if employees are given freedom to do the job, their morale will be high. Nobody likes to
be supervised all the time.
6. Worker’s Perception of Rewards System:

The worker’s perception of past rewards and future opportunities for rewards affect their morale to a
substantial extent. If the workers regard the rewards as fair and satisfactory, their morale will tend to be
higher than if the perception is in the opposite direction. Moreover, if the rewards and opportunities for
the future tend to be bleak, morale will tend to be low as compared to the situation where the worker
perceives opportunities for satisfaction and for attainment in the rewards that lie ahead in the future.
10. The Off the Job Activities of the Employee:

The relationship of an employer with his family and work group influences his behavior and attitude while
he is on the job. His off the job activities e.g. whether his family life is happy or not, whether he has
excessive drinking habits etc. The influences and pressures of a formal and informal group have a
significant effect on the morale of workers.
3.3 Role of Incentives in Building up Morale

Incentive is an act or promise for greater action. It is also called as a stimulus to greater action. Incentives
are something which are given in addition to wagers. It means additional remuneration or benefit to an
employee in recognition of achievement or better work. The need of incentives can be many: -
1. To increase productivity
2. To drive or arouse a stimulus work
3. To enhance commitment in work performance
4. To psychologically satisfy a person which leads to job satisfaction
5. To shape the behavior or outlook of subordinate towards work
6. To inculcate zeal and enthusiasm towards work
Management has to offer the following two categories of incentives to motivate employees:
1. Monetary incentives- Those incentives which satisfy the subordinates by providing them rewards
in terms of rupees. Money has been recognized as a chief source of satisfying the needs of people.
Money is also helpful to satisfy the social needs by possessing various material items. Therefore,
money not only satisfies psychological needs but also the security and social needs. Therefore, in
many factories, various wage plans and bonus schemes are introduced to motivate and stimulate
the people to work.
2. Non-monetary incentives- Besides the monetary incentives, there are certain non-financial
incentives which can satisfy the ego and self- actualization needs of employees. The incentives
which cannot be measured in terms of money are under the category of “Non- monetary
incentives”. Whenever a manager has to satisfy the psychological needs of the subordinates, he
makes use of non-financial incentives. Non- financial incentives can be of the following types: -
a. Security of service- Job security is an incentive which provides great motivation to
employees. If his job is secured, he will put maximum efforts to achieve the objectives of
the enterprise. This also helps since he is very far off from mental tension and he can give
his best to the enterprise.
b. Praise or recognition- The praise or recognition is another non- financial incentive which
satisfies the ego needs of the employees. Sometimes praise becomes more effective than
any other incentive. The employees will respond more to praise and try to give the best
of their abilities to a concern.
c. Suggestion scheme- The organization should look forward to taking suggestions and
inviting suggestion schemes from the subordinates. This inculcates a spirit of participation
in the employees. This can be done by publishing various articles written by employees
d. to improve the work environment which can be published in various magazines of the
company. This also is helpful to motivate the employees to feel important and they can
also be in search for innovative methods which can be applied for better work methods.
This ultimately helps in growing a concern and adapting new methods of operations.
e. Job enrichment- Job enrichment is another non- monetary incentive in which the job of
a worker can be enriched. This can be done by increasing his responsibilities, giving him
an important designation, increasing the content and nature of the work. This way
efficient worker can get challenging jobs in which they can prove their worth. This also
helps in the greatest motivation of the efficient employees.
f. Promotion opportunities- Promotion is an effective tool to increase the spirit to work in
a concern. If the employees are provided opportunities for the advancement and growth,
they feel satisfied and contented and they become more committed to the organization.
The above non-financial tools can be framed effectively by giving due concentration to the role of
employees. A combination of financial and non- financial incentives help together in bringing
motivation and zeal to work in a concern.
Concept Check
Indian cricket team has been losing matches one after one for the last two months. The new members
though want to perform well by stretching themselves but they are feeling helpless as their seniors are
not at all concerned by this. The seniors have earned enough fame and money and they do not think it
worthwhile to play for the country anymore. They do not get the kick while playing. What do you think
is missing in the team?
a. Lack of Motivation for Seniors and Juniors
b. Lack of Morale for Seniors and Juniors
c. Lack of Motivation for seniors and Lack of Morale for Juniors
d. Lack of morale for seniors and lack of motivation for Juniors
Answer is C.
Seniors do not think it’s worthwhile to play for the country since they already have achieved everything.
They do not feel motivated. Juniors on the other hand are down because group is losing. Hence their
Morale is low but their motivation is still high as they want to achieve more. But if morale keeps low
for a longer period of time then they will lose motivation also
4 Motivation and Personality

Motivation also depends on the type of personality.
4.1 What is Personality

Personality is pattern of thinking, feeling, understanding and behaving. Personality can be described best
in terms of personality traits and Attributes
1. Personality Traits: A personality trait is often ingrained. These are the types of characteristics that
most people have had for most of their lives. For example, being an introvert is a trait. There are
5 major Traits. This is also known as OCEAN model
2. Personality Attributes: An Attribute is generally discussed in the context of specific behaviors that
are learned as part of external experiences. For example being committed to work is an
attribute. Attributes, as opposed to traits, are not ingrained, but learned over time
I. Locus of Control: Locus of control is the center of control of an individual’s code of

conduct. People can be grouped into two categories i.e., internals and externals
respectively. People who consider themselves as the masters of their own fates are
known as internals, while, those who affirm that their lives are controlled by outside
forces known as externals. Before making any decision, internals actively search for
information, they are achievement driven, and want to command their environment.
Thus, internals do well on job that craves complex information processing, taking initiative
and independent action. Externals, on the other hand, are more compliant, more willing
to follow instructions, so, they do well in structured, routine jobs.
II. Machiavellianism: Machiavellianism is being practical, emotionally distant, and believing

that ends justify means. They believe in gaining something though by compromising self-
conscious
III. Self-esteem: It is the extent up to which people either like or dislike themselves. Self-
Esteem is directly related to the expectations of success and on-the-job satisfaction.
Individuals with high self-esteem think that they have what it takes to succeed. So, they
take more challenges while selecting a job. On the other hand, individuals with low self-
esteem are more susceptible to external distractions. So, they are more likely to seek the
approval of others and to adapt the beliefs and behaviors of those they respect.
IV. Self-monitoring: Self-monitoring is the capability of regulating one’s behavior according
to social situations. Individuals with high self-monitoring skill easily adjust their behavior
according to external, situational factors. However, people with low self-monitoring skills
cannot cover themselves.
4.2 Linkage between Motivation and Personality

Worker’s personality traits create high-order goals that they strive to achieve in their lives. When the
characteristics of their jobs are aligned with their high-order goals, they tend to be more productive
workers.
For example, if a person have characteristics of Openness, Conscientiousness, Self-esteem then it will
be hard for an employer to motivate the person if he or she works in a repetitive job with no
advancement opportunity. Such an employee must be given a highly challenging and complex task
On the other hand, if an employee is lacking Self-Esteem, Conscientiousness and has external locus of
Control then such person would like to work on a job which is repetitive and has fixed set of
instructions
5 Summary Sheets
Click the next green button on the bottom of your screen to view the summary sheets containing
summary on this topic.
1. The summary will be helpful to revise just before the exam

2. This helps you in assessing your understanding and is very useful in improving retention .
So do not forget to read this summary.
Happy Learning!!!

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Motivation – Part 2 – RBI Grade B 2018

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Goal Setting Theory 1

Natural ability of Person 1

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2 Process Based Theories

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4. Motivational Force (MF) = Expectancy x Instrumentality x Valence

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Another way to express Expectancy theory is as given below

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The features of Goal setting theory are:

2. Self-efficacy: Self- Efficacy is the belief or self-confidence, that he/she is capable of

Note: This Theory is also based on Cognition or the Cognitive Process

2.2.1 How do Managers Implement Goal Setting Theory?

Advantages of Goal Setting Theory

Limitations of Goal Setting Theory

2.3 Adam’s Equity Theory

A person will feel angry, demotivated when

1. Change inputs (exert less effort if underpaid or more if overpaid).

2.3.1 Referents in Equity Theory

2.3.2 Assumptions in Equity Theory

2.3.3 Implications in Workplace

Note: This Theory is also based on Cognition or the Cognitive Process

2.4 Self Determination Theory

2.4.1 How does it Works

How exactly do people go about fulfilling these three needs?

Note: This Theory is also based on Cognition or the Cognitive Process

2.5 Cognitive Evaluation Theory

Note: This Theory is also based on Cognition or the Cognitive Process

2.6 Reinforcement Theory

2. Negative Reinforcement: This implies rewarding an employee by removing negative / undesirable

3. Punishment: Punishment attempts to decrease the probability of specific behaviors being

2.6.1 Some More Points on the Reinforcement Theory

Difference between Instinct Theory of Motivation and Drive Reduction Theory

2.7.1 Criticism of Drive Reduction Theory

2.8 Self-Efficacy Theory

People with a strong sense of self-efficacy:

 View challenging problems as tasks to be mastered

People with a weak sense of self-efficacy:

 Avoid challenging tasks

2.8.1 Factors Affecting Self-Efficacy

1. Experience, or "enactive attainment" – The experience of mastery is the most important

2.8.2 How does Self- Efficacy Impacts Motivation?

Self-efficacy has several effects on thought patterns and responses:

2.8.3 Increasing Self-Efficacy in Others

2.8.4 Relationship between Goal-Setting theory and Self-Efficacy Theory

A) He will think that maybe he is not intelligent

2.9.1 What Causes High Motivation

2.9.2 Job Characteristics which help us in reaching these Psychological States

1. As mentioned above, it is a multivariate model. According to this model, individual behavior is

3. Individuals have different needs, desires and goals.

The Various Elements of Porter and Lawler Model

A) The amount of effort Mr. Sharma will put in

2.11 Hawthorne Effect

2.12 Three Dimensional Theory of Attribution