UNIT - 3

Theories of Motivation
Study Question 1: What is motivation?

 Basic motivational concepts

– Motivation—the forces within the individual that
account for the level, direction, and persistence of
effort expended at work.
– Reward—a work outcome of positive value to the
individual
– Extrinsic rewards—valued outcomes given to
someone by another person.
– Intrinsic rewards—valued outcomes that occur
naturally as a person works on a task.
Defining Motivation
To be effective, every organization must,
1. Attract competent people and retain them with it
2. Allow people to perform tasks for which they were
hired
3. Stimulate people to go beyond routine performance
and overreach themselves in their work.

If organisation wants to be successful it must address

motivational challenges involved in arousing the
people’s desire to be productive member.
Effective Performance = ability X motivation.
Defining Motivation
Motivation
Motivation is a result of processes internal or
external to the individual that arouse
enthusiasm and persistence to pursue a certain
course of action.

In other words, it is complex of forces starting

and keeping a person at work in an org. Thus
motivation is something that moves the person
into action, and continue him in the course of
action already initiated.
Importance of Motivation
1. Motivation coupled with ability leads to
performance. Not only are employees
motivated to perform allotted tasks, they
look for better ways to it.
2. Motivated employee is generally more
quality oriented
3. Highly motivated workers are more
productive then apathetic workers
4. Motivation helps in retaining employees and
reducing labour turnover
Importance of Motivation
5. Improves management – employee
relationships in the organisation as
resistance between employee and employer
is reduced
6. No. of complaints and grievances will come
down. Accident rate will also be down.
MOTIVATIONAL FRAMEWORK

Identifies needs

Reassesses needs Searches for ways

and deficiencies To satisfy the needs

Employees
Receives either
Engages in goal
awards or
directed behavior
punishments

Performs
Maslow’s Hierarchy of Needs
Lower-Order Needs Higher-Order Needs
Needs that are satisfied Needs that are satisfied
externally; physiological internally; social, esteem,
and safety needs. and self-actualization
needs.
Hierarchy of Needs Theory
(Maslow)
Hierarchy of Needs Theory
There is a hierarchy of five
needs—physiological, safety,
social, esteem, and self-
actualization; as each need is
substantially satisfied, the next
need becomes dominant.
Self-Actualization
The drive to become what one is capable of
becoming.
 Maslow’s Hierarchy of Needs
Maslow’s Hierarcy of Needs is based on the assumption that
behaviour, at least in part, is directed towards the satisfaction
of needs. The need hierarchy is as follows: -
1. Basic Physiological Needs: ensures survival and maintenance
of life. Eg. Food, Cloth, Shelter, Air, Water
2. Safety and Security Needs: People want assurance of
maintaining a given economic level. They want job security,
security of source of income, provision for old age, insurance
[
against risks
3. Social Needs: concerned with sociability, Exchange of feelings
and grievances, companionship, belongingness etc.
 Maslow’s Hierarchy of Needs
4. Esteem and Status Needs: these needs include self-confidence,
independence, achievement, competence, knowledge and
success. They are concerned with prestige and status of
individual.
5. Self fulfillment Needs: these needs are found in persons whose
first four needs are satisfied. These are concerned with
achieving what a person considers to be his mission in life.
It involves realizing one’s potential for continued self
development
 Two-Factor Theory (Frederick
Herzberg)
Theory of work behaviour given by Frederick Herzberg.

Based on survey conducted on Engineers and Accountants

wherein they were asked: -

1. When did you feel good for the job

2. When did you feel bad for the job

Results found that factors which made people happy or provide

satisfaction are totally different from the one which made
people dissatisfy.
 Two-Factor Theory (Frederick
Herzberg)
Dissatisfies or Hygiene Factors
Satisfiers or Motivators
Company policy and administration
Achievement
Supervision
Recognition
Working Conditions
Responsibility
Security
Advancement and Growth
Communication

Self-
Actualization Needs
Esteem Needs
Social Needs
Security Needs
Physiological Needs
 Two-Factor Theory (Frederick
Herzberg)
Motivators or Satisfiers
Factors such as Achievement, recognition,
responsibility, Growth and Advancement
creates job satisfaction and act as
motivators
Hygiene Factors
Factors—such as company policy
and administration, supervision,
work group and salary—that, when
adequate in a job, placate workers.
When factors are adequate, people
will not be dissatisfied.
 Two-Factor Theory (Frederick
Herzberg)
For Motivation, Mgr. Should cope with both Satisfiers and Dissatisfies

Improve Hygiene Factors – Dissatisfaction will be removed

Favorable frame of mind is created for motivation

Provide Satisfiers – Motivation will take place

ERG Theory (Clayton Alderfer)
ERG Theory
Maslow’s need theory was criticized on the ground that the
limits between esteem, social and self-actualization were
not clear and physiological, social and security needs were
overlapping. To revise the same, ERG theory was given by
Alderfer

Core
CoreNeeds
Needs
1.1. Existence:
Existence:provision
provisionofofbasic
basicmaterial
materialrequirements.,
requirements.,
physiological
physiologicaland
andsafety
safetyneed
need
2.2. Relatedness:
Relatedness:desire
desirefor
forrelationships.
relationships.
3.3. Growth:
Growth:desire
desirefor
forpersonal
personaldevelopment.
development.
 ERG Theory (Clayton Alderfer)
ERG Model revises Maslow’s theory in following ways:
1. Three categories of needs form a hierarchy of needs but
offered a less rigid version. For eg. both esteem needs and
social needs are clubbed in relatedness needs, neither have
fulfillment precedence over other
2. Instead of satisfaction progression, it follows frustration –
regression model I.e. if we can not satisfy our higher order
needs or something is preventing higher order need from
being fulfilled, the individual regress back towards
fulfillment of needs lower in the hierarchy.
Core
CoreNeeds
Needs
Eg: if relatedness needs are relatively fulfilled and growth-
1.1. Existence:
Existence: provision
provision ofofbasic material
materialrequirements.,
basicindividual requirements.,
need fulfillment
physiological is
and blocked,
safety need attention will return to
physiological
relatedness and safety need
needs.
2.2. Relatedness:
Relatedness:desire
desirefor
forrelationships.
relationships.
3.3. Growth:
Growth:desire
desirefor
forpersonal
personaldevelopment.
development.
 ERG Theory (Clayton Alderfer)
3. Recognized that satisfaction of existence and relatedness
needs, results in decrease in their importance, however,
Growth needs become more rather than less as they become
fulfilled. When one goal is satisfied, we look forward to
other goal by becoming more productive and creative.
Advantages
Consistent with our knowledge of individual differences among
people. Variables like education, family background and
cultural environment influence the priority for needs
1. It is less restrictive
The ERG motivation theory work situations

 On a work level, this means that managers must recognize

his employees' multiple simultaneous needs. In Alderfer's
ERG model, focusing exclusively on one need at a time
will not motivate your people. The frustration-regression
principle impacts workplace motivation. For example, if
growth opportunities are not provided to employees, they
may regress to relatedness needs, and socialize more with
co-workers. If you can recognize these conditions early,
steps can be taken to satisfy the frustrated needs until the
employee is able to pursue growth again.
Achievement Model by
David McClland
 Achievement Model by David McClland

Acheivement theory propose that motivation varies

according to the strength of one’s need for
achievement. According to this theory, everyone
has three important needs, the need for
achievement (nAch), Need for power (nPow) and
Need for Affiliation (nAff).

If managers are sensitive to these learned needs, they

can motivate their workers.
Cont…...

 Acquired needs theory

– Developed by David McClelland.
– People acquire needs through their life
experiences.
– Needs that are acquired:
• Need for Achievement (nAch)
• Need for Power (nPower)
• Need for Affiliation (nAff)
Cont……

 Acquired needs theory

– Need for Achievement (nAch)
• Desire to do something better or more efficiently, to
solve problems, or to master complex tasks.
– People high in (nAch) prefer work that:
• Involves individual responsibility for results.
• Involves achievable but challenging goals.
• Provides feedback on performance.
Cont….

 Acquired needs theory

– Need for Power (nPower)
• Desire to control other persons, to influence their
behavior, or to be responsible for other people.
• Personal power versus social power.
– People high in (nPower) prefer work that:
• Involves control over other persons.
• Has an impact on people and events.
• Brings public recognition and attention.
Cont….

 Acquired needs theory

– Need for Affiliation (nAff)
• Desire to establish and maintain friendly and warm
relations with other persons.
– People high in (nAff) prefer work that:
• Involves interpersonal relationships.
• Provides for companionship
• Brings social approval.
 Achievement Model by David McClland

 The Achievement Motive: People with high need for

achievement are self - motivated. They like to get involved in
tasks that offer them high accomplishments. They confront
challenges head on. Behavioral characteristics of this
category of people includes: -

 1. Achievers prefer a moderate level of difficulty or challenge.

They are not enthusiastic about tasks which are either too
simple and therefore easy to achieve or too difficult, therefore
impossible to achieve. They are realistic in their goal setting.
 Achievement Model by David McClland

 They like to feel that they have reasonable control

of an outcome. They prefer to motive out of the
situations which are either dependent upon chance
or influenced by third party.
 Achievement motivated people also like to have
frequent feedback about how well they are doing.
They generally prefers tasks which itself provide
them enough feedback to evaluate themselves.
 Achievement Model by David McClland
The Power Motive (nPow)
Power is the ability to influence others to behave as
they want. People with high need for power feel
satisfied in situations whey they can influence and
control others. Such people contribute to orgns. By
specifying their goals and influencing others to
achieve them.

They are always interested in increasing their

capacity to be a successful manager.
Achievement Model by David McCllandness

Personal Power Managers: here the need for power reflects

the aim of personal gain through manipulating and
control of others. They may coerce or threaten
subordinates' to get them to carry out their demands.

High Institutional power: believes that power should be

used more for the good of the orgn. than for personal
advantage. Satisfaction is obtained by motivating
others to contribute towards goals of the orgn.
 Achievement Model by David McCllandness

 The Affiliative Motive (nAff)

 People with high affiliation need find

satisfaction in the quality of their social and
interpersonal relationships. They avoid
isolation since interactions with others is
very important for them. They show more
concern for the feelings of others.
 Achievement Model by David McCllandness

 Recommendations of Mr. McClelland's:

1. Jobs in organizations should be arranged in such a
manner that they provide periodic feedback
2. Employees should have heroes in orgn with a high
need for achievement from whom they get inspired
3. Employees should be encouraged to modify their
self images as nAch as these people take more
challenges and responsibilities
4. Orgn. Should help employees set realistic goals
which are challenging yet achievable.
Application of Need Theory
 Need Theory does not claim that people can be categorized
into one of three types.
 Rather, it asserts that all people are motivated by all of
these needs in varying degrees and proportions.
 An individual's balance of these needs forms a kind of
profile that can be useful in determining a motivational
paradigm for them.
 It is important to note that needs do not necessarily
correlate with competencies; it is possible for an employee
to be strongly affiliation-motivated, for example, but to
still be successful in a situation in which his affiliation
needs are not met.
Application of Need Theory
 McClelland proposes that those in top
management positions should have a high
need for power and a low need for
affiliation.
 He also believes that although individuals
with a need for achievement can make good
managers, they are not generally suited to
being in top management positions.
Vroom’s Expectancy
Theory of Motivation
Expectancy theory is based on the idea that work effort
is directed towards behavior that people believe will
lead to desired outcomes.

Experience Desired level of Desired

performance outcome
Employees efforts towards performance are based on
two factors: -
1. What they have to do for getting rewarded
2. How much the rewards meant to them before they
perform for the job
Vroom’s Expectancy Theory of Motivation

 Vroom realized that an employee's

performance is based on individual factors
such as personality, skills, knowledge,
experience and abilities. He stated that
effort, performance and motivation are
linked in a person's motivation. He uses the
variables Expectancy, Instrumentality and
Valence to account for this.
 Expectancy is the belief that increased effort will
lead to increased performance i.e. if I work harder
then this will be better. This is affected by such
things as:
 Having the right resources available (e.g. raw
materials, time)
 Having the right skills to do the job
 Having the necessary support to get the job done
(e.g. supervisor support, or correct information on
the job)
 Instrumentality is the belief that if you perform
well that a valued outcome will be received. The
degree to which a first level outcome will lead to
the second level outcome. i.e. if I do a good job,
there is something in it for me. This is affected by
such things as:
 Clear understanding of the relationship between
performance and outcomes – e.g. the rules of the
reward 'game'
 Trust in the people who will take the decisions on
who gets what outcome
 Transparency of the process that decides who gets
what outcome
 Valence is the importance that the individual places upon
the expected outcome. For the valence to be positive, the
person must prefer attaining the outcome to not attaining it.
For example, if someone is mainly motivated by money, he
or she might not value offers of additional time off.
 The three elements are important behind choosing one
element over another because they are clearly defined:
effort-performance expectancy (E>P expectancy) and
performance-outcome expectancy (P>O expectancy).
 E>P expectancy: our assessment of the probability that our
efforts will lead to the required performance level.
 P>O expectancy: our assessment of the probability that
our successful performance will lead to certain outcomes.
 Equity Theory

It was formulated by J. S. Adams. It is based

on the assumption that members of an
organisation experience strong expectation of
justice, balance and fairness in treatment by
the objectives. When a person feel that he is
being treated unfairly by the orgn., his
motivation and performance towards the job
will adversely affected.
Here, two variables are important. Inputs and
Outcomes.
 Four referent comparisons

 Self-inside: An employer’s experiences in a

different position inside the employee’s current
org.
 Self-Outside: An employee’s experiences in a
situation or position outside the employee’s
current org.
 Other-inside: Another individual or group of
individuals inside the employee’s org.
 Other-outside: Another individual or group of
individuals outside the employee’s org.
 Four moderating variables
 Gender
 Length of tenure
 Level in the organization
 Amount of education or professionalism
 Equity Theory

 Inputs are the efforts and skills which the

employee puts into performance
 Output are the rewards which the member
received from orgn. in return of the performance.
 If the employee thinks that there is equity in the
input and output, he will be satisfied and is
normally committed.
Inputs Outputs
Time Pay
Education Recognition
Efforts Promotion
Training Personal Development
 Equity Theory
2. The individual will also compare his inputs and
outputs with that of others.

Person’s Outcomes = Other’s Outcomes

Person’s Inputs = Other’s Inputs

When an individual thinks that his ratio of inputs

and outcomes is more or less equal to other
person’s of his rank and status, there is equity
and he feels motivated. But if he feels that there
is inequity, then he will be de-motivated and
feels uncomfortable and tenses in the orgn.
 Expectancy theory

– Developed by Victor Vroom.

– Key expectancy theory variables:
• Expectancy — belief that working hard will result in
desired level of performance.
• Instrumentality — belief that successful
performance will be followed by rewards.
• Valence — value a person assigns to rewards and
other work related outcomes.
 Effects of inequity
 Change inputs (exert less efforts if underpaid or more if
overpaid)
 Change outcomes (indi. Paid on a piece-rate basis can
increase their pay by producing higher quan. Of units of
lower quality)
 Distort perception of self (“I used to think I worked at a
moderate pace, but now I realize I work a lot harder than
everyone else”)
 Distort perception of others (“Mihir’s job isn’t as
desirable as I thought”)
 Choose 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”)
 Leave the field (quit the job)