CHAPTER FOUR

MOTIVATION CONCEPTS AND THEIR APPLICATIONS

4.1. WHAT IS MOTIVATION?

The term motivation derived from the Latin word mover meaning, “to move.” In the present
context, motivation represents “those psychological processes that cause arousal, direction, and
persistence of voluntary actions that are goal oriented. Managers need to understand these
psychological processes if they are to successfully guide employees toward accomplishing
organizational objectives. Motivation is an internal force that energizes behavior, gives direction
to behavior, and underlies the tendency to persist. This definition of motivation recognizes that in
order to achieve goals, individuals must be sufficiently stimulated and energetic, must have a
clear focus or end in mind, and must be willing and able to commit their energy for a long
enough period of time to realize their aim. Since the leading function of management involves
influencing others to work toward organizational goals, motivation is an important aspect of that
function. Because motivation is an internal force, we cannot measure the motivation of others
directly. Instead, we typically infer whether or not other individuals are motivated by watching
their behavior. As managers analyze their workforces, they can always see some people who
outperform others of equal skill. A closer look might reveal instances in which a person with
outstanding talents is consistently outperformed by someone having lesser talents. Why? These
latter employees appear willing to exert more effort, to try harder, to accomplish their goals,
often these hard workers are described by their bosses as “motivated employees.” Motivated
individuals work hard, persist and are goal oriented. Motivation is one of the more complex
topics in organizational behavior. Motivation refers to the forces within a person that affect his or
her direction, intensity, and persistence of voluntary behavior. Motivating employees is more
challenging at a time when firms have dramatically changed the jobs that people perform.
Motivation is an inner desire to satisfy an unsatisfied need. It is the result of the interaction of a
person’s internal needs and external influences that determine behavior. Motivation as the
internal and external factors that lead an individual to engage in goal-related behavior.
Motivation is defined as individual’s intention or willingness to put maximum effort in his/her
work to reach organizational goals and enhance one’s ability to satisfy some individual needs.
Scientists have defined motivation as the process of arousing, directing, and maintaining
behavior toward a goal. As this definition suggests, motivation involves three components. The
first component, arousal, has to do with the drive, or energy behind our actions. For example,
when we are hungry, we are driven to seek food. The direction component involves the choice of
behavior made. A hungry person may make many different choices--eat an apple, have a pizza
delivered, gout for a burger, and so on. The third component, maintenance, is concerned with
people’s persistence, their willingness to continue to exert effort until a goal is met. The longer
you would continue to search for food when hungry, the more persistent you would be.

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4.2. FEATURES OF MOTIVATION

Motivation: the processes that account for an individual’s features of intensity, direction, and
persistence of effort toward attaining a goal, specifically for OB, toward attaining an
organizational goal.
 Intensity: how hard a person tries to meet a goal?
 Direction: efforts are channeled toward organizational goals.
 Persistence: how long a person maintains effort toward a goal?
4.3. Importance of Motivation
Motivation is a very important for an organization because of the following benefits it provides:

1. Puts human resources into action

Every concern requires physical, financial and human resources to accomplish the goals.
It is through motivation that the human resources can be utilized by making full use of it.
This can be done by building willingness in employees to work. This will help the
enterprise in securing best possible utilization of resources.

2. Improves level of efficiency of employees

The level of a subordinate or a employee does not only depend upon his qualifications
and abilities. For getting best of his work performance, the gap between ability and
willingness has to be filled which helps in improving the level of performance of
subordinates. This will result into-

a. Increase in productivity,
b. Reducing cost of operations, and
c. Improving overall efficiency.
3. Leads to achievement of organizational goals

The goals of an enterprise can be achieved only when the following factors take place :-

a.There is best possible utilization of resources,

b.There is a co-operative work environment,
c.The employees are goal-directed and they act in a purposive manner,
d.Goals can be achieved if co-ordination and co-operation takes place
simultaneously which can be effectively done through motivation.
4. Builds friendly relationship

Motivation is an important factor which brings employees satisfaction. This can be done
by keeping into mind and framing an incentive plan for the benefit of the employees. This
could initiate the following things:

a. Monetary and non-monetary incentives,

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 b. Promotion opportunities for employees,
c. Disincentives for inefficient employees.

In order to build a cordial, friendly atmosphere in a concern, the above steps should be
taken by a manager. This would help in:

 Effective co-operation which brings stability,

 Industrial dispute and unrest in employees will reduce,
 The employees will be adaptable to the changes and there will be no resistance to
the change,

This will help in providing a smooth and sound concern in which individual interests will
coincide with the organizational interests,

This will result in profit maximization through increased productivity.

Leads to stability of work force

Stability of workforce is very important from the point of view of reputation and
goodwill of a concern. The employees can remain loyal to the enterprise only when they
have a feeling of participation in the management. The skills and efficiency of employees
will always be of advantage to employees as well as employees. This will lead to a good
public image in the market which will attract competent and qualified people into a
concern. As it is said, “Old is gold” which suffices with the role of motivation here, the
older the people, more the experience and their adjustment into a concern which can be of
benefit to the enterprise.

4.4. THEORIES OF MOTIVATION

I. EARLY THEORIES OF MOTIVATION

A. Maslow’s Hierarchy of Needs Theory. In this, perhaps best known (and least supported)
of all motivational theories, Abraham Maslow proposed that there are five levels of
human needs. As each of the lower level needs are satisfied, the next unsatisfied need
becomes dominant. Satisfied needs no longer motivate, only unsatisfied needs motivate
people.

1. Physiological: lower order need, includes hunger, thirst, shelter, sex, and other bodily
needs. Lower order needs are satisfied externally, through forces outside of the
person.
2. Safety: lower order need, includes security and protection from physical and
emotional harm.
3. Social: upper order need, includes affection, belongingness, acceptance, and
friendship. Upper order needs are satisfied internally, that is, from within the person.

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 4. Esteem: upper order need, includes internal (self-respect, autonomy, and
achievement) and external (status, recognition, and attention) esteem factors.
5. Self-actualization: upper order need, defined as the drive to “be all one can be” it
includes growth, achieving one’s potential, and self-fulfillment.

Self
Actualization

Esteem

Love (Social)

Safety & Security

Physiological

B. McGregor’s Theory X and Theory Y. Douglas McGregor’s theory proposed that there
were two basic views of human nature, one essentially negative (Theory X) and the other
positive (Theory Y). Which view a manager believed was true would give that manager a
pre-set series of assumptions and related behaviors.

Theory X. In this negative view of human nature, workers are basically lazy and need
firm guidance. The assumptions related to Theory X are:

a. Work Avoidance. Employees dislike work and so will try to avoid it.

b. Need for Control. Since employees dislike work, they must be coerced, controlled,
or threatened with punishment to get them to achieve organizational goals.

c. Avoidance of Responsibility. Workers seek formal direction and dislike taking

responsibility.

d. Security is Paramount. Employees value security above all else and display little
ambition.

In Maslow’s terms, a Theory X viewpoint means that lower-order needs dominate

individual needs. Theory X managers tend to be very directive, are seen as harsh and
unbending, and will often be accused of “micro-management.”

2. Theory Y. In this positive view, employees are willing workers who actively seek
responsibility. The underlying assumptions are:

a. Work as play. Work is as natural as play or rest.

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 b. Commitment. When employees are committed, they will exercise self-direction
and self-control.

c. Accepting Responsibility. Workers accept, and will even seek, responsibility.

d. Innovation is Common. The ability to make innovative decisions is widely

disbursed throughout the population; it does not only exist in the managerial
ranks.

In Maslow’s terms, a Theory Y viewpoint means that higher-order needs dominate

individual needs. Managers who hold to this view tend to use participative decision-
making, create responsible and challenging jobs, and build good group relations in an
attempt to motivate employees. Unfortunately, as with Maslow’s theory, there is no
research evidence that either view of human nature is valid or that taking actions
based on Theory Y will increase motivation in workers.

C. Herzberg’s Two-Factor (Motivation-Hygiene) Theory. Frederick Herzberg proposed

that an individual’s relation to work is basic and that one’s attitude toward work can very
well determine success or failure. In other words, things that people feel good about at
work are motivating and those things they don’t feel good about are de-motivating.

In his research, Herzberg realized that the opposite of satisfaction is not dissatisfaction; rather
there are two different factor scales, one ranging from satisfaction to no satisfaction and the other
from dissatisfaction to no dissatisfaction. When he related a number of workplace factors against
these two scales, he realized they were very different concepts. He called the first set of factors
motivation factors and the second hygiene factors.

a. Hygiene Factors. These workplace factors, when not met, lead to job
dissatisfaction. When they are met, they do NOT lead to job satisfaction, but
rather, to a lack of dissatisfaction. So, meeting hygiene factors does NOT increase
motivation, it merely placates the workers. Hygiene factors include quality of
supervision, pay, company policies, physical working conditions, relations with
others, and job security.

b. Motivation Factors. These are intrinsically rewarding factors in the work environment
such as promotion and personal growth opportunities, recognition, responsibility, and

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 achievement. Meeting these factors will increase motivation by creating a satisfying
work environment.

As with the other two main motivational theories, this very popular theory is also not well
supported in the research literature. There are many criticisms of the Two-Factor Theory, mostly
dealing with the methodology Herzberg used in his initial studies.

II. CONTEMPORARY THEORIES OF MOTIVATION

Unlike the historic theories of motivation, these contemporary theories of motivation do have a
reasonable degree of supporting documentation. It is important to remember that these are still
theories. None of these has been totally proven to be true.

A. McClelland's Theory of Needs. David McClelland created a theory based on three

needs:

1. Need for Achievement (nAch): the drive to excel and to achieve in relation to a set of
standards. Achievers seek rapid feedback on performance, they like tasks of
intermediate difficulty, and they accept personal responsibility for success or failure.
High achievers tend to be successful entrepreneurs. However, having a high need for
achievement does not necessarily mean the person would be a good manager for
larger organizations, as his or her desire for recognition supersedes his or her concern
for the organization. Employees with low achievement needs can be trained to
increase their need for achievement.

2. Need for Power (nPow): the need to make others behave in a way they would not
have behaved otherwise. People with high power needs feel they have to have an
impact or be influential with other people. They prefer to be placed into competitive
and status-oriented situations. High power people are more concerned with prestige
and gaining influence over others than with effective performance.

3. Need for Affiliation (nAff): the desire for friendly and close interpersonal
relationships. Affiliates strive for friendship, prefer cooperative situations, and desire
friendships with a high degree of mutual understanding.

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 The best managers appear to be those with a high need for power,
and a low need for affiliation.

C. Goal-Setting Theory. This theory studies the effects goal specificity, challenge, and
feedback has on performance. The study of goal setting has created the following general
rules:

1. Specific goals produce a higher level of output than do generalized goals.

2. Typically, the more difficult the goal, the higher level of performance, assuming that
goal has been accepted by the employee. This is because:

a. Difficult goals focus attention on the task and away from distractions.

b. Difficult goals energize employees.

c. Difficult goals tend to make people persist in efforts toward attaining them.

d. Difficult goals force employees to discover strategies to help them perform the task
or job more effectively.

3. Feedback is important in goal-setting theory, especially self-generated feedback.

4. The question of whether participative goal-setting increases motivation has not yet
been resolved. The assumption is that when employees are involved in setting the
goals, they have greater buy-in and therefore will have a higher level of commitment.
Commitment: when an individual believes that he or she can achieve a goal and
wants to achieve it.

5. Contingencies in goal-setting theory:

a. Goal commitment increases when goals are made public, when the individual has
an internal locus of control, and when goals are self-set rather than assigned.

b. Goals are better in terms of performance on simple rather than complex tasks,
when tasks are familiar, and when they are accomplished by a single individual.

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 c. Goal-setting theory is culture-bound. It is important that the key components of
goal-setting theory match the culture traits.

D. Management by Objectives. To formalize goal-setting theory into an organization one of

the more effective ways to do this is through management by objectives or MBO.
Management by objectives emphasizes participatively set goals that are tangible,
verifiable, and measurable. MBO operationalizes the concept of objectives by devising a
process by which objectives cascade down through the organization. The result of MBO
is a hierarchy of objectives that build toward organizational objectives. It also provides
specific performance goals for individuals.

J. STACY ADAM’S EQUITY (FAIRNESS) THEORY

Tigist graduated last year from the Addis Ababa University with a degree in Accounting and Finance.
After interviews with a number of organizations on campus, she accepted a position with one of the
nation’s largest public accounting firms and was assigned to their Addis Ababa office. Tigist was very
pleased with the offer she received: challenging work with a prestigious firm, an excellent opportunity to
gain important experience, and the highest salary any accounting major at Addis was offered last year —
Birr 2,950 a month. But Tigist was the top student in her class; she was ambitious and articulate and fully
expected to receive a commensurate salary.

Twelve months have passed since Tigist joined her employer. The work has proved to be as challenging
and satisfying as she had hoped. Her employer is extremely pleased with her performance; in fact, she
recently received a Birr 200-a-month raise. However, Tigist’s motivational level has dropped
dramatically in the past few weeks. Why? Her employer has just hired a fresh college graduate out of
Addis Ababa University, who lacks the one-year experience Tigist has gained, for Birr 3,200 a month -
Birr 50 more than Tigist now makes! It would be an understatement to describe Tigist in any other terms
than irate. Tigist is even talking about looking for another job. Tigist’s situation illustrates the role that
equity plays in motivation.

Equity theory refers to an individual’s subjective judgements about the fairness of the reward she or he

got, relative to the inputs (which may include many factors such as effort, experience, education, and so

on), in comparison with the rewards of others.

The essence of equity (which also means "fairness") theory is that employees compare their efforts and

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rewards with those of others in similar work situations. This theory of motivation is based on the
assumption that individuals are motivated by a desire to be equitably treated at work. The individual
works in exchange for rewards from the organization. Four important terms in this theory are:

1. Person. The individual for whom equity or inequity is perceived

2. Comparison other. Any group or persons used by Person as a referent regarding the ratio of inputs
and outcomes
3. Inputs. The individual characteristics brought by Person to the job. These may be achieved (e.g.,
skills, experience, learning) or ascribed (e.g., age, sex, race)
4. Outcomes. What Person received from the job (e.g., recognition, fringe benefits, pay)

Employees might compare themselves to friends, neighbors, co-workers, colleagues in other

organizations, or past jobs they them-selves have had. Which referent an employee chooses will be
influenced by the information the employee holds about referents as well as by the attractiveness of the
referent. This has led to focusing on four moderating variables —gender, length of tenure, level in the
organization, and amount of education or professionalism.

Research shows that both men and women prefer same-sex comparisons. The research also demonstrates
that women are typically paid less than men in comparable jobs and have lower pay expectations than
men for the same work. So a female that uses another female as a referent tends to result in a lower
comparative standard.

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This leads us to conclude that employees in jobs that are not sex segregated will make more cross-sex
comparisons than those in jobs that are either male or female dominated. This also suggests that if women
are tolerant of lower pay, it may be due to the comparative standard they use. Employees with short
tenure in their current organizations tend to have little information about others inside the organization, so
they rely on their own personal experiences. On the other hand, employees with long tenure rely more
heavily on co-workers for comparison. Upper-level employees, those in the professional ranks, and those
with higher amounts of education tend to be more cosmopolitan and have better information about people
in other organizations. Therefore, these types of employees will make more other-outside comparisons.

Ways to restore Inequity

Employees are motivated to reduce or eliminate their feelings of inequity by correcting the inequitable
situation. There are six possible ways to reduce feelings of inequity. Notice, however, that the strategy
used depends on the persons past experience as well as whether they are under or overrewarded.

1. Changing inputs - Underrewarded workers tend to reduce their effort and performance if these
outcomes don't affect their paycheck. Overpaid workers sometimes (but not very often) increase their
inputs by working harder and producing more.
2. Changing outcomes - People with underreward inequity might ask for more desired outcomes, such
as a pay increase. If this does not work, some are motivated to join a labor union and demand these
changes at the bargaining table. Others misuse sick leave for more paid time off. At the extreme,
some people steal company property or use facilities for personal use as ways to increase their
outcomes.
3. Changing perceptions - Employees may distort inputs and outcomes to restore equity feelings. Over
rewarded employees typically follow this strategy because it's easier to increase their perceived inputs
(seniority, knowledge, etc.) than to ask for less pay!
4. Leaving the field - Some people try to reduce inequity feelings by getting away from the inequitable
situation. Thus, equity theory explains some instances of employee turnover and job transfer. This
also explains why an under rewarded employee might take more time off work even though he or she
is not paid for this absenteeism

G. Vroom's Expectancy Theory. This widely accepted explanation of motivation

deals with a coupling of three beliefs. The belief that (1) effort will lead to a good
performance appraisal, (2) good appraisals will lead to organizational rewards, and
(3) organizational rewards will satisfy the employee's personal goals. The relationship
between these three beliefs and the strength of the links between them are the focus of
this theory.

1. The Three Key Relationships:

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 a. Effort-Performance Relationship. Defined as the probability perceived by the
individual that exerting a given amount of effort will lead to successful
performance. If the employee believes that effort will not result in successful
performance or that the performance will not be accurately reflected in the
performance appraisal, little effort will be expended.
b. Performance-Reward Relationship. The degree to which the individual believes
that performing at a particular level will lead to the attainment of a desired
outcome. Unless the relationship between strong performance appraisals and
rewards is clear, little effort will be expended to achieve those high appraisal
marks.
c. Rewards-Personal Goals Relationship. The degree to which organizational
rewards satisfy an individual's personal goals or needs and the attractiveness of
those potential rewards for the individual. Unless organizational rewards are
tailored to individual employee wants and needs, they will not be very
motivational and little effort will be expended.
While the research results are mixed, there is some support for this theory. It may
be considered somewhat idealistic, considering the current realities of the
workplace.

IMPLICATIONS FOR MANAGERS

An important consideration for managers when reviewing these motivational theories is to

determine their relevance, which outcomes they are measuring or influencing, and their relative
predictive power.

A. Need Theories (Maslow, Hertzberg, and McClelland). In general, need theories

are not very valid explanations of motivation. Managers should use the more
recent theories of motivation.
B. Goal-Setting Theory. This theory is very effective in explaining productivity.
However, it does not address absenteeism, turnover, or satisfaction.
C. Equity Theory/Organizational Justice. While this theory does address a number
of managerial concerns, the primary aid to managers is an understanding of the
concept of organizational justice.
D. Expectancy Theory. A relatively powerful tool to explain employee productivity,
absenteeism, and turnover. However, it may not be directly applicable as many of

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its assumptions, similar to those of the rational model of decision-making, are not
very realistic. The theory is best used in explaining employee productivity
increases in jobs that are at higher levels of the organization and/or are more
complex in nature.

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