THEORIES OF MOTIVATION

GROUP 2
Anupama Thomas
Anupama A
Anoop James
Aiswarya B
Jeena U C
Nimmy Johny P
Reshma Anilkumar 1
 Vroom’s Expectancy Theory
 Goal Setting Theory
 McClelland’s Theory
 Mc Gregor’s Theory
 Alderfer’s ERG Theory
 OB Mode Theory
 Equity Theory of social Exchange
 Theory Z

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VROOM’S EXPECTANCY THEORY
• Developed by Victor H. Vroom

• Motivation is a product of three factors:-

Valence

( how much one wants a reward)

Expectancy
(one’s estimate of the probability that effort will result in successful performance)

Instrumentality
( one’s estimate that performance will result in receiving the reward)

V *E * I = M
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VALENCE
• The strength of a person’s preference for receiving a reward.

• Expression of one’s desire to reach a goal.

• Eg - If an employee strongly wants a promotion , then

promotion has high valence for that employee.

• Valence for a reward is unique to each employee.

• An individual’s valence for a reward is conditioned by

experience, and it may vary substantially over a period of time
as old needs become satisfied and new ones emerge.

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• Implications of need- based model and idea of valence in the
expectancy model both are different.

• In need based model , broad generalizations are used to predict

the drives and unsatisfied needs o group of employees.

• In expectancy model , gather specific information about an

individual employee’s preferences among set of rewards then
continue to monitor the changes.

• Valence may be positive as well as negative.

• The total range of valence from -1 to +1

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• Some employees will find intrinsic valence in the work itself,
if they have a strong work ethic or competence motivation.

• They derive satisfaction from sense of completion of doing a

right task.

• In this outcomes are largely within employee’s own control

and less subject to management’s rewards system.

• These employees are self- motivated.

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 EXPECTANCY
• Strength of belief that one’s work related efforts will result in
completion of a task.
• Eg:- A person selling magazine subscriptions door –to- door
may know from experience that volume of sales is directly
related to the number of sales calls made.
• Expectancies are stated as probabilities – the employee’s
estimate of the degree to which performance will be
determined by the amount of effort experienced.
• Expectancy of the probability of a connection between effort
and performance.

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• Its value may range from 0 to 1.
• If an employee sees no chance that effort will lead to the
desired performance, the expectancy is zero.
• If the employee is totally confident that the task will be
completed, the expectancy has a value of 1.
• One of the forces contributing to effort –performance
expectancies is the individuals self efficacy.
• According to Albert Bandura A personal judgment of “how
well one can execute courses of action required to deal with
prospective situations”.

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• Employees with high level of efficacy are more likely to
believe that exerting effort will result in satisfactory
performance.
• High self efficacy creates a high expectancy assessment.

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 INSTRUMENTALITY
• Employee’s belief that a reward will be received once the task
is accomplished.
• Employees make subjective judgment that – Organization
values the employees performance and will administer rewards
on a contingent basis.
• The value of instrumentality effectively ranges from 0 to 1.
• Eg:- If an employee sees that promotions are usually based on
performance data , instrumentality will be rated high.
• If the basis for such decision is unclear or managerial
favoritism is suspected , a low instrumentality estimates will
be made.
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 The three factors in the expectancy model may exist in an
infinite number of combinations.

 If desire for a reward is high, but either of the probability

estimates is low, then motivation will likely be moderate, at
best.

 If both expectancy and instrumentality are low, then

motivation will be weak even if the reward has high valence.

 Some employees would prefer not to be promoted into

management because of the stress, loss of overtime pay or
additional responsibilities they would bear.

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 In situation like these, where promotion has a negative valence
the employee will try to avoid earning the promotion.

 The strength of avoidance behavior depends not only on the

negative valence but on the expectancy and instrumentality
factors as well.

 This model depend on the employee’s perception of the

relationship between effort, performance and rewards.

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GOAL SETTING THEORY

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GOAL SETTING THEORY
• EDWIN LOCKE
• LATHAM AND LOCKE

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 EDWIN LOCKE

 In 1960’s , Edwin Locke put forward the Goal setting theory of

motivation

 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

 In simple words, goals indicate and give direction to an employee

about what needs to be done and how much efforts are required to be
put in.
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 FEATURES
 The willingness to work towards attainment of
goal is main source of job motivation. Clear,
particular and difficult goals are greater motivating
factors than easy, general and vague goals.

 Specific and clear goals lead to greater output

and better performance. Unambiguous, measurable
and clear goals accompanied by a deadline for
completion avoids misunderstanding

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 Goals should be realistic and challenging. This
gives an individual a feeling of pride and triumph
when he attains them, and sets him up for attainment
of next goal.

 Better and appropriate feedback of results

directs the employee behaviour and contributes to
higher performance than absence of feedback. It helps
employees to work with more investment and leads to
greater jobs satisfaction. 18
 Employees participation in goal is not always
desirable.

 Participation of setting goal, however , makes goal

more acceptable and leads to more involvement.

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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.

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 LIMITATIONS
 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

behaviour.

 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.

 There is no evidence to prove that goal-setting improves

job satisfaction
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 LATHAM AND LOCKE

 Dr. Locke and Dr. Latham joint published “A Theory

of Goal Setting and Task Performance” in 1990.

 Their book reinforced the importance of setting specific

and difficult goals.

 It included that there were five fundamental

principles that lie behind effective goal setting. Not only
that but the degree to which these are present in a goal is
directly linked to the achievement of that goal.

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FUNDAMENTAL PRINCIPLES

 CLARITY

 CHALLENGE

 COMPLEXITY

 COMMITMENT AND FEEDBACK

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 CLARITY

 Clear goals are measurable and unambiguous

 When a goal is clear and specific, with a definite time

set for completion, there is less misunderstanding about
what behaviours will be rewarded

 You know what’s expected, and you can use the specific
result as a source of motivation

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 CHALLENGE
 One of the most important characteristics of goals
is the level of challenge

 People are often motivated by achievement, and

they’ll judge a goal based on the significance of the
anticipated accomplishment

 When setting goal’s make each goal a challenge

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 COMPLEXITY

 The last factor in goal setting theory introduces two

more requirements for success

 For goals or assignments that are highly complex,

take special care to ensure that the work doesn’t become
too overwhelming.

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 COMMITMENT & FEEDBACK
 Goals must be understood and agreed upon if they are
to be effective. Employees are more likely to “buy into”
a goal if they feel they were part of creating that goal

 Feedback provides opportunities to clarify

expectations, adjust goal difficulty, and gain recognition.
It’s important to provide benchmark opportunities or
targets, so individuals can determine for themselves how
they’re doing.
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Mc Gregor’s theory

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Theory X

&

Theory Y

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 Theory x

It is the traditional theory of management philosophy.

’power is supreme’ is the main theme of this theory. The
people at work level have no authority to suggest or
object anything except to carryout the orders of the
superior.

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 Assumptions
• Workers have an inherent dislike towards their job and they
will avoid their job if it is possible for them.

• Workers have little or no ambition in their work life and are

not concerned about their career growth.

• They tend to resist changes and also avoid responsibilities.

• They are basically self-centered and do not care about

organizational goals and objectives. In other words, their goals
are contrary to the organizational goals.

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 They prefer to be led by others rather than lead others.

 Workers in general are not intelligent and are mostly

gullible.

 Workers are generally poor decision makers.

 They need to be monitored and controlled closely to make

them work effectively.

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 Theory y
This theory emphasis on the co-operative endeavour of
management and employees. The attempt is to get maximum
output with minimum amount of control and direction. The
theory ‘Y’ emphasis on creating the opportunities, removing
obstacles, encouraging growth and providing guidance.

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 Assumptions
• The average human being does not dislike work. Work is as
natural as play or rest. Work may be a source of satisfaction or
punishment depending upon the controllable conditions.
• External control and the threat of punishment are not the only
means for accomplishing the organizational objectives. Workers
are committed to objectives and exercise self control and self
direction to achieve them.
• Commitment to objectives is the function of the rewards
associated with achievement.

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• The average man works under proper conditions, not only to
accept but seek responsibilities. Avoidance of responsibility, lack
of ambition and emphasis on security are not the inherent
qualities of the man but they are all consequences of experience.

• The capacity to exercise a relatively high degree of imagination,

ingenuity and creativity in the solution of organizational
problems is widely distributed in the population.

• Under the condition of modern industrial life, the intellectual

potentialities of average person are only partly utilized.

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 Comparison of theory X and
theory Y
Theory X Theory Y
• Work is inherently • Most people find happiness
distasteful to most people, in hard work under the
and they will attempt to
right conditions.
avoid work whenever
possible. • People enjoy taking

• Most people avoid ownership of their work.

responsibility and need • People are self-motivated
constant direction. and embrace responsibility.
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• People must be constantly • Creativity and problem-solving
directed, prompted, thrive when employees are
rewarded, or punished in trusted.
order to complete their • People are motivated when
work. they find value in their
• Lack of ambition and contributions and see an
laziness is more common opportunity to realize their own
than ambition and potential.
creativity.

• People are motivated by

money and fears about
their job security. 37
 Merits
• Theory ‘X’ and theory ‘Y’ are a good guide to management, to
not only developing motivational techniques; but also attuning
entire managerial systems around these assumptions about
human behaviour.

• McGregor’s assumptions about human behaviour are rather

realistic; as in practice we usually find people corresponding to
Theory ‘X’ or Theory ‘ Y’ ideologies. This is the common
observation of many of us.

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 Demerits
It tends to over-generalise and over simplify people
as being one way or the other. People cannot be put
on two extremes. No enterprising man belongs
either to Theory X or Theory Y.

 McGregor’s theory squeezes managerial styles and

philosophies into two extremes of conduct which is
devoid of reality.

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 People who follow Theory Y still find that
they have to behave in a very directive and
controlling manner.
 McGregor suggests that job itself is the
key to motivation. But all people do not
see motivation in the job; The management
has to motivate people to work.
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 THEORY Z
 The Theory Z was invented by the American economist
and management professor William Ouchi, following the X
and Y theory by Douglas McGregor in the 1960s.
 Theory Z is an integrated model of motivation.
 Theory Z is introduced as a solution for the
problems found in X & Y Theory
 Type Z organisation has three major features—trust,
subtlety and intimacy.
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 FEATURES

1) MUTUAL TRUST: When there is trust and openness

there is less chances of conflict in the
organization.
2) STRONG BOND BETWEEN ORGANIZATION &
EMPLOYEES: Life time employment is like living with a
family. Loyalty is so high that even in worse
condition employees & management
support each other.
3) EMPLOYEE INVOLVEMENT: More and more participation of
employees in decision making improves
commitment and performance. Employees feels a
sense of responsibility.

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4) INTEGRATED ORGANIZATION: Actual sharing of information
and resources rather than on chart. Focus on job
rotation which improves understanding about
interdependence of tasks.
5) CULTURE OF COORDINATION: The leader’s role is to
coordinate the efforts of employees. Leader must
create common culture through process of
communication, debate & analysis.
6) INFORMAL RELATIONSHIP: Reduce boss culture & Focus on
informal relationship.

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 HOW IT WORKS

LIFE TIME JOB HIGH HIGH

EMPLOYMENT SATISFACTION PRODUCTIVITY MORALE

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 MCCLELLAND’S ACHEIVEMENT
MOTIVATION THEORY
The achievement motivation theory was advocated by David C
McClelland and his associates. According to them there are 3
important human needs such as
1. NEED FOR AFFILIATION
2. NEED FOR POWER
3. NEED FOR ACHIEVEMENT

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 NEED FOR AFFILIATION
The need for affiliation reflex a desire to interact socially
with people. Affiliation place a very complex but vital
role in human behavior. McClelland has suggested that
people with high need for affiliation usually derive
pleasure from being loved and tent to avoid his pain of
being rejected.

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 NEED FOR POWER
The need for power reflect the desire to obtain and exercise
power and authority. A person with high need for power is
concerned with influencing others and winning arguments. He
derives satisfaction from being in position of influence and
control.

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 NEED FOR ACHIEVEMENT
The need for achievement reflects the desire to do
something better or more. Employees with a high need
for achievement derives satisfaction on achieving their
desire goals. McClelland has develop the concept of the
“achievement syndrome”. It is a cluster of behavioural
indices that distinguish the individual with high need
for achievement. This indices are as follows:

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ALDEFER’S ERG THEORY

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• Developed by American Psychologist
Clayton Aldefer
• “E” stands for Existence, “R” stands for
Relatedness and “G” stands for Growth
• Extension of the Maslow’s need hierarchy
and Herzberg’s two factor theory

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• The theory states that the needs can change
their position in the hierarchy as the
circumstances changes

• Based on the empirical evidences he has found

that there seems to be some overlapping
between physiological, security and social
needs

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He categorized the needs into three

• Existence needs
• Relatedness needs
• Growth needs

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EXISTENCE NEEDS
• Desires for materials and physical well being.
• These needs are satisfied with food water, air, shelter,
working conditions, pay and fringe benefits
RELATEDNESS
• Relatedness needs are the desires to establish and
maintain interpersonal relationships.
• These needs are satisfied with relationships with family
, friends, supervisors, subordinates, and co - workers

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GROWTH NEEDS
• Growth needs are the desires to be creative, to
make useful and productive contributions and
to have opportunities for personal development

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 MASLOW’S NEED HIERARCHY AND ERG
THEORY

ERG Theory has 3 key differences from Maslow’s

theory
• It suggests that people can be motivated by
needs from more than one level at the same
time
• Importance of needs varies for each person
and as circumstances changes
• It has a frustration regression element

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 ADVANTAGES
• It is a more valid version of Maslow’s need
hierarchy theory

• It provides us categorization of needs their

relationships

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 DISADVANTAGES
• This theory does not provide a clear cut
guidelines. It only mentions that an individual
will be motivated to engage in a behavior
which will satisfy one of the three sets of
needs

• This theory has not attained the status of need

hierarchy theory

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EQUITY THEORY OF
MOTIVATION

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 EQUITY THEORY

 First developed in 1963 by John Stacey Adams

 Employees seek to maintain equity between the inputs that they

bring to a job and the outcomes that they receive from it against the
perceived inputs and outcomes of others.

 The higher an individual's perception of equity, the more

motivated they will be.

 If someone perceives an unfair environment, they will be

demotivated.
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INPUTS OUTCOMES

•Time • Job security

•Effort • Salary
•Hard Work • Employee benefit
•Commitment • Expenses
•Adaptability • Recognition
•Tolerance • Reputation
•Determination • Responsibility
•Enthusiasm • Sense of achievement
•Personal sacrifice
• Praise
•Trust in superiors
•Support from co-workers
and colleagues
• Skill
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 1) Equity

A person feels equitably treated when his

outcome/input ratio is equal to other person’s
outcome/input ratio.

Individual’s outcome = Other’s outcome

Individual’s input Other’s input

Equitably paid workers are said to feel satisfied.

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 2)Under rewarded inequity / Negative inequity

A person feels under rewarded when his

outcome/input ratio is less than whom the person
compare himself.

Individual’s outcome < Other’s outcome

Individual’s input Other’s input

Equity theory states that an underpaid worker feels

angry.

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 3)Over rewarded inequity /Positive inequity

A person feels over rewarded when his outcome/input

ratio is greater than whom the person compare himself.

Individual’s outcome > Other’s outcome

Individual’s input Other’s input

Equity theory states that an overpaid worker produce

higher quality

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 Consequences of inequity

To reduce inequity, employee may…

 Reduce inputs (reduce effort)

 Try to influence manager to increase outcomes
(complain, file grievance, etc.)
 Try to influence co-workers’ inputs (criticize
others outcomes or inputs)
 Withdraw emotionally - or physically (engage
in absenteeism, tardiness, or quit)
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 Organizational Responsibilities

 Monitor employee motivation through interviews or anonymous

questionnaires.

 Reward people for desired performance and do not keep pay

decisions secret.

 Tie some rewards to group accomplishments to build teamwork and

encourage cooperation.

 Reward managers for creating, monitoring, and maintaining

expectancies, instrumentalities, and outcomes that lead to high effort
and goal attainment.

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 CRITICISM TO EQUITY THEORY

 A number of demographic and psychological variables

affect people’s perception of fairness and interactions
with others
 Equity theory is not precise enough to predict which
actions are most probable
 Not everyone will perceive the compensation system as
unfair even they are in the same situation

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ORGANIZATIONAL BEHAVIOUR MODIFICATION (OB Mod)

 It is a sophisticated tool for improving the organizational

effectiveness.

 It is based on the work of B.F.Skinner who postulated that

needs of the individual employee are inferred by his
behavior.

 This technique is used to modify or eliminate undesirable

behavior and replace it with behavior that is more
compatible with goal attainment.

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Steps in OB Mod
 As suggested by Luthans and Kreitner, OB Mod in organization involve the
following five steps:

1.Identification of Critical Behavior

• The manager should try to identify behaviors that are desirable and undesirable from
the point of view of the organization.

• The critical behaviors that have significant impact on the employees performance
must be given due attention because it gets replaced time again and again.

• Critical behavior may be identified through discussion with the particular employee
and his immediate superior as both are closely intimated with the job behaviours.

• Some of the behaviours, which greatly influence absenteesm or attendance, tardiness

or promptiness , complaints or constructive criticism.

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2. Measurement of Behaviours

 This step requires the manager to develop some

base line which allows the manager to determine
his success in changing the subordinate’s
behaviour

 It may also provide insight into the circumstances

associated with each critical behaviour.

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3.Functional Analysis of Behavior

 It is necessary to analyze the patterns of continued behavior

that reqires modification. This may require insight and
evaluation of individual differences in behavior.

 If through this process an inventory of positive reinforce can

be developed , the next step of intervention is greatly
simplified.

 Functional analysis must make sure that contingent

consequences are identified.

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4. Development of Intervention Strategy

 For the successful implementation of OB Mod , this

stage involves
a) Developing a strategy for changing the bahavior
b) Implementing the strategy and
c) Measuring the frequency of the resulting behavior

 A record is kept of how often the problem behavior is

repested

 There are several strategies that can be used at this

stage.

 These include positive reinforcements , negative

reinforcement , extinction and punishment. 71
5. Evaluation

 The purpose of evaluation of strategies of OB Mod is know their

effectiveness.

 This would reveal whether the undesirable behaviour have been

substituted by desirable behavior or not.

 This would also reveal if the employees have undergone a

permanent change in behaviour.

 Lastly , the manager should appraise the improvement in

performance which is the basic purpose of OB Mod measures like
quality, absenteesm , grievances, tardiness etc. may be used to
evaluate success of the OB Mod program.
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FOUR BASIC REINFORCEMENT STRATEGIES IN ORGANIZATIONAL
BEHAVIOR MODIFICATION

Positive Reinforcement
Positive reinforcement means providing rewards for good behavior, This can come in the
form of bonuses or extra benefits , but positive reinforcement can involve smaller and
simpler rewards.

Negative Reinforcement
Negative reinforcement is not punishment.It is the withholding of punishment. For
example, if an employee has been in danger of being demoted and improves her
behavior, decides not to demote her is negative reinforcement.

Punishment
Punishment is an undesirable consequence an employee receives for bad behavior. This
can involve actions like demoting the employee or suspending the employee.

Extinction
Extinction is the elimination of a behavior. This type of behavior modification should be
reserved for the most damaging behaviors.
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THANK YOU

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