MOTIVATION

Motivating Employee Performance

The Organization as an Iceberg
Metaphor
 Motivation
• Motivation is derived from the Latin word movere,
“to move.” The Merriam-Webster dictionary defines
motivation (root motive) as “something (as a need or
desire) that causes a person to act” while motivate
is defined as “the object influencing a choice or
prompting an action.”

• Several common themes among motivation

definitions refers to action or behavior toward goals,
specifically, the individual and environmental
antecedent factors that cause action, the goal itself,
and feedback acting as a moderator which can
influence the intensity of achieving the goal

3
 The Nature of Motivation
• Motivation
– The set of forces that cause people to behave in certain ways.
– The goal of managers is to maximize desired behaviors and
minimize undesirable behaviors.
– The processes that account for an individual’s willingness to
exert high levels of effort to reach organizational goals,
conditioned by the effort’s ability to satisfy some individual need.
• Effort: a measure of intensity or drive.
• Direction: toward organizational goals
• Need: personalized reason to exert effort
– Motivation works best when individual needs are compatible with
organizational goals.

10–4
 The Motivation Framework

Choice of
Need or Search for ways
behavior to
deficiency to satisfy need
satisfy need

Determination of
future needs and Evaluation of
search/choice for need satisfaction
satisfaction

The motivation processes through a series of discreet

steps. Content, process, and reinforcement perspectives
on motivation address different parts of this process.
 Motivation Theories

• Hierarchy of Needs (Maslow) - content

• Nach Theory (McClelland) - content
• Reinforcement Theory - process
• Self-Efficacy Theory (Bandura)
• Job Design (Enlargement, Rotation, Enrichment)
• Two-Factor Model (Herzberg) - content
• Job Characteristics Model (Hackman & Oldham)
• Empowerment (Spreitzer)
• Equity Theory (Adams) - process
• Expectancy Theory (Vroom) - process
• Goal-Setting (Locke) - process
6
 Early Theories of Motivation
These early theories may not be valid, but they
do form the basis for contemporary theories and
are still used by practicing managers.

•Maslow’s Hierarchy of Needs Theory

•McGregor’s Theory X and Theory Y
•Herzberg’s Two-Factor Theory
•McClelland’s Theory of Needs

6-7
 Content Perspectives on Motivation
• Content Perspectives
– Focus on needs and deficiencies of individuals
– Approaches to motivation that try to answer the
question, “What factors in the workplace motivate
people?”
• Content Perspectives of Motivation
– Maslow’s Hierarchy of Needs
– Herzberg’s Two-Factor Theory
– McClelland’s Achievement,
Power, and Affiliation Needs

10–8
Content Perspectives on Motivation (cont’d)
• The Need Hierarchy Approach (Maslow)
– People must, in a hierarchical order, satisfy five needs:
• Physiological needs for basic survival and biological function.
• Security needs for a safe physical and emotional environment.
• Belongingness needs for love and affection.
• Esteem needs for positive self-image/self-respect and
recognition and respect from others.
• Self-actualization needs for realizing one’s potential for
personal growth and development.
 Hierarchy of Needs Theory

– Lower-order and higher-order needs affect workplace

behavior and attitudes.

– Lower-order needs:
• Physiological, safety, and social needs.
• Desires for physical and social well being.
– Higher-order needs:
• Esteem and self-actualization needs.
• Desire for psychological growth and development.
Maslow’s Hierarchy of Needs
 Maslow’s Hierarchy of Needs
NEEDS
General Examples Organizational Examples

Self- Challenging
Achievement actualization job

Job
Status Esteem
title

Friends
Friendship Belongingness
at work

Pension
Stability Security
plan

Base
Food Physiology
salary

10–12
Opportunities for satisfaction in Maslow’s
hierarchy of human needs.
Content Perspectives on Motivation (cont’d)
• The Need Hierarchy Approach
– Weaknesses of Maslow’s theory
• Five levels of need are not always present.
• Ordering or importance of needs is not always the same.
• Cultural differences.
 McGregor’s Theory X and Theory Y
• Two distinct views of human beings: Theory X
(basically negative) and Theory Y (positive).
– Managers used a set of assumptions based on their
view
– The assumptions molded their behavior toward
employees
Content Perspectives on Motivation (cont’d)
• The Two-Factor Theory (Herzberg)
– People’s satisfaction and dissatisfaction are influenced
by two independent sets of factors—motivation factors
and hygiene factors.
– Theory assumes that job satisfaction and job
dissatisfaction are on two distinct continuums:
• Motivational factors (work content) are on a continuum that
ranges from satisfaction to no satisfaction.
• Hygiene factors (work environment) are on a separate
continuum that ranges from dissatisfaction to no
dissatisfaction.

10–16
 Motivation Factors
• Achievement The Two-
• Recognition
• The work itself
Factor
• Responsibility Theory of
• Advancement
and growth Motivation

Satisfaction No satisfaction

Hygiene Factors
• Supervisors
• Working conditions
• Interpersonal relations
• Pay and security
• Company policies and
administration

Dissatisfaction No dissatisfaction
Content Perspectives
Herzberg’s on Motivation
Two-Factor Theory(cont’d)
Key Point: Satisfaction and dissatisfaction are not opposites
but separate constructs

Extrinsic and Intrinsic and

Related to Related to
Dissatisfaction Satisfaction

6-18
Herzberg’s two-factor theory
 Herzberg’s Motivator-Hygiene Model
No Satisfaction Motivators Satisfaction
Jobs that do not Jobs offering
offer achievement achievement,
recognition, recognition,
stimulating work, stimulating work,
responsibility, responsibility,
and advancement. and advancement.

Dissatisfaction Hygiene Factors No Dissatisfaction

Jobs with poor
company policies,
and administration,
technical supervision
salary, interpersonal
relationships with
supervisors, and
working conditions.
Jobs with good
company policies,
and administration,
technical supervision,
salary, interpersonal
relationships with
supervisors, and
working conditions.
 Summary of Herzberg’s Motivator–Hygiene Findings

Source:
Adapted from
Frederick
Herzberg, “One
More Time:
How Do You
Motivate
Employees,”
Harvard
Business
Review,
January–
February 1968.
Content Perspectives on Motivation (cont’d)

• The Two-Factor Theory (Herzberg)

– Motivation is a two-stage process:
• Ensuring that the hygiene factors are not deficient and not
blocking motivation.
• Providing employees the opportunity to experience increase
motivational factors through the use of job enrichment and the
redesign of jobs.
– Criticisms of the Two-Factor Theory
• Interview findings are subject to different explanations.
• Sample population was not representative.
• Subsequent research has not upheld theory.
 Criticisms of Two-Factor Theory
Herzberg says that hygiene factors must be met
to remove dissatisfaction. If motivators are
given, then satisfaction can occur.
•Herzberg is limited by his procedure
– Participants had self-serving bias
•Reliability of raters questioned
– Bias or errors of observation
•No overall measure of satisfaction was used
•Herzberg assumed, but didn’t research, a
strong relationship between satisfaction and
productivity
Content Perspectives on Motivation (cont’d)
• Individual Human Needs (McClelland)
– The need for achievement
• The desire to accomplish a goal or task
more effectively than in the past.
– The need for affiliation
• The desire for human
companionship and
acceptance.
– The need for power
• The desire to be influential
in a group and to be in control
of one’s environment.
 Contemporary Theories of Motivation
• Goal-Setting Theory
– Management by Objectives (MBO)
• Reinforcement Theory
• Equity Theory
• Expectancy Theory
 Vroom’s Expectancy Theory
The strength of a tendency to act in a certain way
depends on the strength of an expectation that the act
will be followed by a given outcome and on the
attractiveness of the outcome to the individual.

Expectancy of Instrumentality of Valuation of the

performance success in getting reward in
success reward employee’s eyes
 Process Perspectives on Motivation
(cont’d)
• Expectancy Theory
– Motivation depends on how much we want something
and how likely we are to get it.
– Assumes that:
• Behavior is determined by a combination of personal and
environmental forces.
• People make decisions about their own behavior in organizations.
• Different people have different types of needs, desires, and goals.
• People choose among alternatives of behaviors in selecting one
that that leads to a desired outcome.
 Process Perspectives on Motivation
(cont’d)
• Expectancy Theory (cont’d)
– Model of Motivation
• Suggests that motivation leads to effort, when combined
with ability and environmental factors, that results
in performance which, in turn, leads to
various outcomes that have value
(valence) to employees.
Expectancy theory
– Motivation (M), expectancy (E), instrumentality (I), and
valence (V) are related to one another in a
multiplicative fashion:
M=ExIxV
–If either E, I, or V is low, motivation will
be low.
 Process Perspectives on Motivation (cont’d)

• The Expectancy Model of Motivation

Outcome Valence

Environment Outcome Valence

Motivation Effort Performance Outcome Valence

Ability Outcome Valence

Outcome Valence
 Process Perspectives on Motivation
(cont’d)
• Elements of Expectancy Theory
– Effort-to-Performance Expectancy
• The individual’s perception of the probability that effort will
lead to a high level of performance.
– Performance-to-Outcome Expectancy
• The individual’s perception of the probability that
performance will lead to a specific outcome, or consequence
or reward in an organizational setting.
 Process Perspectives on Motivation
(cont’d)
• Elements of Expectancy Theory (cont’d)
– Outcomes (Consequences) and Valences
• Valence is an index of how much an individual values a
particular outcome. It is also the attractiveness of the outcome
to the individual.
• Attractive outcomes have positive valences and unattractive
outcomes have negative valences.
• Outcomes to which an individual is indifferent have zero
valences.
 Process Perspectives on Motivation
(cont’d)
• Elements of Expectancy Theory (cont’d)
– For individual motivated behavior (effort) to occur:
• Effort-to-performance expectancy (the belief that effort will
lead to high performance) must be greater than zero.
• Performance-to-outcome expectancy (performance will result
in certain outcomes) must be greater than zero.
• The sum of the valences must be greater than zero—the
outcome/reward must have value to the individual .
Managerial implications of expectancy
theory.
 Process Perspectives on Motivation
(cont’d)
• Equity Theory
– People are motivated to seek social equity in the
rewards they receive for performance.
– Equity is an individual’s belief that the treatment he or
she receives is fair relative to the treatment received
by others.
– Individuals view the value of rewards (outcomes) and
inputs of effort as ratios and make subjective
comparisons of themselves to other people.
outcomes (self) outcomes (other)
=
inputs (self) inputs (other)
 Equity Theory’s “Relevant Others”

• Can be four different situations:

– Self-Inside
• The person’s experience in a different job in the same organization
– Self-Outside
• The person’s experience in a different job in a different
organization
– Other-Inside
• Another individual or group within the organization
– Other-Outside
• Another individual or group outside of the organization
The Equity Process
 Process Perspectives on Motivation
(cont’d)
• Equity Theory (cont’d)
– Conditions of and reactions to equity comparisons:
• Feeling equitably rewarded.
– Maintain performance and accept comparison as fair estimate.
• Feeling under-rewarded—try to reduce inequity.
– Change inputs by trying harder or slacking off.
– Change outcomes by demanding a raise.
– Distort the ratios by altering perceptions of self or of others.
– Leave situation by quitting the job.
– Change comparisons by choosing another object person.
 Process Perspectives on Motivation
(cont’d)
• Equity Theory (cont’d)
– Conditions of and reactions to equity comparisons:
• Feeling over-rewarded.
– Increase or decrease inputs.
– Distort ratios by rationalizing.
– Help the object person gain more outcomes.
 Process Perspectives on Motivation
(cont’d)
• Goal-Setting Theory
– Assumptions
• Behavior is a result of conscious goals and intentions.
• Setting goals influences the behavior of people in
organizations.
• Characteristics of Goals
– Goal difficulty
• Extent to which a goal is challenging and requires effort.
• People work harder to achieve more difficult goals.
• Goals should be difficult but attainable.
 Process Perspectives on Motivation
(cont’d)
• Characteristics of Goals (cont’d)
– Goal specificity
• Clarity and precision of the goal.
• Goals vary in their ability to be
stated specifically.
– Acceptance
• The extent to which persons
accept a goal as their own.
– Commitment
• The extent to which an individual is
personally interested in reaching a goal.
 Effect of Goal Difficulty on Performance

High
Task Performance

Area of
Optimal
Goal
Difficulty

Low Moderate Challenging Impossible

Goal Difficulty
 Guidelines for Writing “SMART”
Goals

Specific
Measurable
Attainable
Results oriented
Time bound
 Process Perspectives on Motivation
(cont’d)
• The Expanded Goal-Setting Theory of Motivation

Goal Goal Organizational Intrinsic

difficulty acceptance support Rewards

Goal-Directed Satisfaction
Performance
Effort

Goal Goal Individual Extrinsic

specificity commitment abilities and Rewards
traits
 Reinforcement Perspectives
on Motivation
• Reinforcement Theory
– The role of rewards as they cause behavior to change
or remain the same over time.
– Assumes that:
• Behavior that results in
rewarding consequences
is likely to be repeated,
whereas behavior that
results in punishing
consequences is less likely
to be repeated.
Fundamentals of reinforcement theory …
– Reinforcement theory focuses on the impact of
external environmental consequences on behavior.
– Law of effect — impact of type of consequence on
future behavior.
– Operant conditioning:
• Developed by B.F. Skinner.
• Applies law of effect to control behavior by manipulating
its consequences.
 Reinforcement Theory

Rewards

Consequences No Rewards Behavior

Punishment
Reinforcement Perspectives on Motivation
(cont’d)
• Kinds of Reinforcement in Organizations
– Positive reinforcement
• Increases the frequency of a behavior through the contingent
presentation of a pleasant consequence.
– Negative reinforcement
• Increases the frequency of a behavior through the contingent
removal of an unpleasant consequence.
Reinforcement Perspectives on Motivation
(cont’d)
• Kinds of Reinforcement in Organizations (cont’d)
– Punishment
• Decreases the frequency of a behavior through the contingent
presentation of an unpleasant consequence.
– Extinction
• Decreases the frequency of a behavior through the contingent
removal of an pleasant consequence.
Applying reinforcement strategies: case of
total quality management.
 Summary of the Theories
• Need Theories (Maslow, Alderfer, McClelland,
Herzberg)
– Well known, but not very good predictors of behavior
• Goal-Setting Theory
– While limited in scope, good predictor
• Reinforcement Theory
– Powerful predictor in many work areas
• Equity Theory
– Best known for research in organizational justice
• Expectancy Theory
– Good predictor of performance variables but shares many of
the assumptions as rational decision making
 Designing Motivating Jobs
• Job Design
– The way into which tasks can be combined to form
complete jobs.
– Factors influencing job design:
• Changing organizational environment/structure
• The organization’s technology
• Employees’ skill, abilities, and preferences
– Job enlargement
• Increasing the scope (number of tasks) in a job.
– Job enrichment
• Increasing responsibility and autonomy (depth) in a job.
 Popular Motivational Strategies
• Empowerment and Participation
– Empowerment
• The process of enabling workers to set their own work goals, make
decisions, and solve problems within their sphere of influence.
– Participation
• The process of giving employees a voice in making decisions
about their work.
– Areas of Participation for Employees
• Making decisions about their jobs.
• Making decisions about administrative matters.
• Participating in decision making about broader issues of product
quality.
 Popular Motivational Strategies (cont’d)
• New Forms of Working Arrangements
– Variable Work Schedules
• Compressed work schedule—Working a full forty-hour week
in less than five days.
• Flexible work schedules (flextime)—Allowing employees to
select, within broad parameters, the hours they will work.
• Job sharing—When two part-time employees share one full-
time job.
 Flextime, Showing Core and
Flexible Hours

Core
Time Core
Time
Start
Time End
Time
 Popular Motivational Strategies (cont’d)
• New Forms of Working Arrangements (cont’d)
– Variable Work Schedules
• Telecommuting—Allowing employees to spend
part of their time working off-site, usually
at home, by using e-mail, the Internet, and
other forms of information technology.
 From Theory to Practice:
Guidelines for Motivating Employees

• Recognize individual • Link rewards to

differences performance
• Match people to jobs • Check the system for
• Use goals equity
• Ensure that goals are • Use recognition
perceived as • Don’t ignore money
attainable
• Individualize rewards

10–57