MBA 202 | ORGANIZATION THEORY

Contemporary
Theories of
Motivation
SITTIE AYESA LACELLE T. GADIA-SARANGANI
 01 CLASSICAL/EARLY THEORIES

02 CONTEMPORARY THEORIES

03 CONCEPTS TO APPLICATION

Table of
Contents
 CONTEMPORARY THEORIES OF MOTIVATION

Self-Determination Goal-Setting Theory Self-efficacy theory

Theory / Cognitive
Evaluation Theory
 CONTEMPORARY THEORIES OF MOTIVATION

Reinforcement theory Equity theory Expectancy theory

Cognitive
Evaluation
Theory
 TWO MOTIVATION SYSTEMS

Cognitive intrinsic
Evaluation Theory motivators come from
the actual
performance of the
task or job

effects of external
extrinsic
consequences on things that come from
a person’s
motivation environment,
controlled by others.
 INTRINSIC MOTIVATION IS A

Self- FUNCTION OF

Determination person’s
Theory needs for
Effects of autonomy
reward AND

depends on competence
views
COGNITIVE EVALUATION THEORY

two main ways extrinsic

rewards affect intrinsic
motivation
the reward may have a controlling affect by being
perceived as the primary reason for participating in an
activity

a reward may have an informational aspect, which

affects the recipient's opinion of his or her own
competence
WHAT MONEY CAN
AND CANNOT DO
money as a motivational tool
 THEORY
COGNITIVE EVALUATION
practical application:
Define and measure performance accurately.

Make rewards contingent on performance.

Reward employees in a timely manner.

Maintain justice in the reward system.

Use monetary and nonmonetary rewards.

key takeaway
Managers should provide intrinsic as well
as extrinsic incentives.

Managers need to make the work interesting,

provide recognition, and support employee growth
and development.

Employees who feel what they do is within their control and a result
of free choice are likely to be more motivated by their work and
committed to their employers.
Goal-Setting
Theory
 HIGHER AND BETTER TASK
PERFORMANCE:

Goal Setting is specific and

essentially challenging goals

linked to task PLUS

appropriate
performance
feedback
 Specific

Measurable

Attainable

Relevant

Time Based
 01 Clarity

7 Goal
GOAL SETTING THEORY

02 Challenge

Setting 03 Commitment

Theory
04 Feedback

05 Task Complexity

Principles 06 Self-efficiency

07 Goal commitment
practical application
In general, managers should make
goals specific and difficult.

Managers should set the highest goals to

which employees will commit.

Although goal setting has positive outcomes, it is not

unequivocally beneficial.

Some goals may be too effective and undermine adaptation

and creativity.
GOAL SETTING THEORY key takeaway
A goal to learn and
generate alternative
solutions > than a goal to
perform.
goals can lead employees to focus on a single standard and
exclude all others.

a very difficult and complex goals stimulate riskier behavior.

lacks of skills and competencies to perform actions essential

for goal may lead to failure.

no evidence to prove that goal-setting improves job

satisfaction.
Self-Efficacy
Theory
social REFERS TO

individual’s belief
cognitive that he is capable
theory of performing a
task.
social
higher self-efficacy, higher
learning confidence you have in your
ability to succeed.
theory
 Performance
01 Accomplishments/
Enactive mastery

Vicarious Experience/
02 Vicarious modelling

03 Social Persuasion
Four Sources of
Self-Efficacy 04
Physiological and Emotional
States/Arousal

Beliefs
practical application
In general, managers will increase
employees’ motivation by increasing their
confidence in successfully completing
the task (self-efficacy).

Implement training programs in the workplace.

The best way to use verbal persuasion is through the

Pygmalion effect.
SELF-EFFICACY THEORY key takeaway
Goal-setting theory and
self-efficacy theory
complement each other
Setting difficult goals for people communicates your
confidence in them.

Self-efficacy can create a positive spiral in which those with

high efficacy become more engaged in their tasks and then, in
turn, increase their performance, which increases
efficacy further.
Reinforcement
Theory
 STATES THAT

individual’s
Reinforcement behavior is a
Theory function of its
consequences

behaviors are selected by

based law their consequences

overlooks the internal state

of effect of the individual
past actions
that led to positive
outcomes tend to be
repeated
Reinforcers

past actions that led

to negative outcomes Punishment
will diminish
kinds of reinforcers
Positive reinforcement
- favorable event or outcome presented after
the behavior.

Negative reinforcement
- removal of an unpleasant event or outcome
after the display of a behavior.
kinds of punishments
Punishment by application
- presentation of an unpleasant event
or outcome to weaken the response it follows

Punishment by removal (Extinction)

- when a pleasant event or outcome is
removed after a behavior occurs.
Contingencies of Reinforcement
practical application
Managers who are making attempt to
motivate the employees must ensure that
they do not reward all employees
simultaneously.

Tell the employees what they are not doing correctly.

Tell the employees how they can achieve positive

reinforcement.
REINFORCEMENT THEORY key takeaway
The basic notion underlying
reinforcement theory is the
concept of reinforcement

This theory is a strong tool for analyzing controlling

mechanism for individual’s behavior.

However, it does not focus on the causes of individual’s

behavior.
Equity
Theory
equity HOW FAIR IS THE COMPENSATION

theory perception
employees perceive what
they get from a job situation

THEIR WORK INPUT

about what they put into it

compare their inputs- treatment

outcomes ratio with the
inputs- outcomes ratios of
others
 Inequity due to being under
01 rewarded

PERCEPTIONS 02 Equity

ON EQUITY
Inequity due to being
03 overrewarded
 01 Change inputs

02 Change outcomes

03 Distort perceptions of self

04
Results of
Distort perceptions of others

Perceived 06 Choose a different referent

06
Inequity
Leave the field
 Equity theory
inform us what we
should do to foster
motivation.

Organizational
justice tells us how
to actually go
about doing it.
practical application
To promote fairness in the workplace,
managers should consider openly sharing
information on how allocation decisions are
made.

Fair and open procedures are especially important when the

outcome is likely to be viewed negatively by some or all employees.

Equity theory demonstrates that, for most employees, motivation is

influenced significantly by relative rewards as well as by absolute
rewards.
SELF-EFFICACY THEORY key takeaway
People seek fairness. They expect
a reasonable balance (or equity)
between their effort and their
rewards.

If we believe our ratio to be equal to those with whom we

compare ourselves, a state of equity exists and we perceive
the situation as fair. Otherwise, inequity exists.

Predictions from equity theory are not likely to be very

accurate about these “benevolent types.”

Inequities created by overpayment do not seem to significantly

affect behavior in most work situations
Expectancy
Theory
 DEPENDS ON

strength of an
strength of a expectation on a
given outcome
tendency to
AND
act attractiveness of
that outcome
 THREE VARIABLES OF EXPECTANCY THEORY
Motivational Force (MF) = Expectancy X Instrumentality X Valence

V E I
valence expectancy instrumentality
 KEY FOCUS OF THEORY

1 2 3
Effort–performance Performance–reward Rewards–personal
relationship relationship goals relationship
If I give a maximum effort, will it be recognized in my performance appraisal?

If I get a good performance appraisal, will it lead to organizational rewards?

If I’m rewarded, are the rewards attractive to me?

practical application
Expectancy Theory of motivation can help
managers understand how individuals make
decisions regarding various behavioral
alternatives.

When deciding among behavioral options, individuals select

the option with the greatest motivational force (MF).

However, Theory has only limited use and is more valid where
individuals clearly perceive effort–performance and
performance– reward linkages.
EXPECTANCY THEORY key takeaway
The key to the expectancy theory
is an understanding of an
individual’s goals and the three
focal relationships.

When an employee has a high level of expectancy and the

reward is attractive, motivation is usually high.

The theory tends to be idealistic however, this criticism can

explain why a significant segment of the workforce
exerts low effort on the job.
Thank you!