CHAPTER 4:

MOTIVATION AND
REWARDS
 Motivation- is the inert drive to become
successful and reach as specific goal. Whether it is a need to
satisfy basic necessity or ego wanting to prove something,
motivation can come from the inside of a person or may be a
stimulus from the outside environment.
• The Motivation process starts with a need.

NEEDS AND DRIVES

TENSION
 ENVIRONMENT OPPORTUNITY

NEEDS AND
TENSION EFFORT PERFORMANCE
DRIVES

GOALS AND
ABILITY REWARDS
INCENTIVES

NEED SATISFACTION
• In Business organization, such motivation is built
within the structure, process and system that put
rewards and incentives according to goals and
performance. As the employee confronts office
tension with the ability to do the job and recognize
opportunities for self growth, the goals of the
company are fulfilled and the concerned employee
is rewarded with incentives. This is a self-repeating
process that nurtures a win-win situation for both
the organization and the employee.
 MASLOW’S
HIERARCHY OF
NEEDS
 MASLOW’S HIERARCHY OF NEEDS

• Physiological needs- are the basic needs such as food, clothing, and shelter
• Safety and security needs-are the needs to be free from threats and danger and to have
a safe work environment and job securiry.
• Social needs-are the needs for affiliation, love, and belongingness.
• Esteem needs include the need for self-esteem or self worth.
• Self-actualization includes the need to maximize ones potentials.
• Kenrick, Griskevicious, Neuberg, and Schaller (2010) updated Maslow’s hierarchy of
needs and reflected the more important facts about human nature.
• The theorists believed that self-actualization is no longer important and is replaced by
three motives which believed were neglected by Maslow.
in the new pyramid, the reproduction of genes is considered as one of the
nature’s most biologically fundamental desire and aspiration.
Subconsciously, it is in human nature that there is a need to raise children.
In addition, the new interpretation and revision of Maslow’s hierarchy of
needs provide the idea that if a person has satisfied a need and goes to the
next need, he/she may find it necessary to go back to the previous need.
ALDERFER’S
ERG THEORY
 ALDERFER’S ERG THEORY

• According to Alderfer, individuals have several unfulfilled needs

• Higher-level needs are not paid much attention not until the
predominant needs are satisfied .
• If frustrations occur in satisfying the higher-level needs, individuals
have the tendency to direct their efforts to satisfy the lower-level
needs.
LEVEL OF NEEDS

A. EXISTENCE
B. RELATEDNESS
C. GROWTH
• SATISFACTION-PROGRESSION
• FRUSTRATION-REGRESSION
 HERZBERG’S
TWO-FACTOR THEORY
HERZBERG IDENTIFIES TWO TYPES OF FACTOR THAT
DOMINATE THE WORKPLACE:

A. EXTRINSIC (DISSATISFIER, HYGIENE) FACTOR

B. INTRINSIC (SATISFIER, MOTIVATOR) FACTOR
• Herzberg’s theory implies that organizations should create interesting
jobs in order to motivate people.
• An application of Herzberg’s theory is job enrichment. it involves
designing of jobs which would improve employee’s personal growth
such as their sense of responsibility and achievement
 METHODS OF JOB ENRICHMENT

A. Direct feedback- this is the timely and direct evaluation of

performance
B. New learning- through trainings, an individual is provided an
opportunity to grow.
C. Uniqueness- each job emphasizes unique features and qualities.
D. Control- the employee is given the power to be accountable to his
job.
MCCLELLAND’S
LEARNED NEEDS
THEORY
 PRIMARY LEARNED NEEDS
A. Need for achievement (n-ach)- Individuals set goals and take risks.
They take responsibility for solving problems and making decisions.
B. Need for affiliation (n-affil)- people desire for social interaction
C. Need for power (n-pow)- they obtain and exercise authority.
• McClelland suggested that a strong n-affil or affiliation-motivation
somewhat destroys a manager’s objectivity, because of their need to be liked.
• A strong n-pow will produce a determined work ethic and commitment to the
organization, but they may not have flexibility and people oriented skills.
• McClelland argues that n-ach people make the best leaders, although they
have the tendency to demand too much of their staff.
• The achievers try their best to excel and appreciate people who would
always give them frequent recognition on how well they are doing.

• The affiliation seeker always seek for harmony.

• The power seekers want power to control others.

• Recent researchers have questioned McClelland in terms of the
validity of his research. They questioned the used of projective
personality tests and they also contend that the need for
achievement cannot be learned.
 VROOM’S
EXPECTANCY
THEORY
 VROOM’S EXPECTANCY THEORY

• Vroom defines motivation as a process governing choices among

the alternative forms of voluntary activity.
• “A person will be motivated to put forth a higher level of effort if
they believe their efforts will result in higher performance and
thus, better rewards.”
 VROOM’S EXPECTANCY THEORY

Valence x Expectancy x Instrumentality= Motivation

 VROOM’S EXPECTANCY THEORY

• First level outcomes - This is a result of doing the job.

• Second level outcomes - This is a reward produced by the first level

outcome.
 INSTRUMENTALITY

• It is the belief that if you perform well, a valued outcome will be received.
The degree to which a first level outcome will lead to the second level
outcome.
• Example: If I do a good job, there is something in it for me.
 VALENCE

• It 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.
• Example: Someone who is motivated by money might not value offers of
additional time off.
 EXPECTANCY

• Is the belief that increased effort will lead to increased performance.

• This is the perception of the individual that a particular behavior will be
followed by a particular outcome.
 EXAMPLE

• Money can be a strong motivator. If an employee wants more money

(valence), he believes that if he exerts much effort, he will be successful in
giving a good performance (expectancy). He believes that more-money (pay
increase) will follow a very good performance (instrumentality).
ADAM'S EQUITY
THEORY
 ADAM'S EQUITY THEORY

• This theory asserts that people compare the rewards they get against other
coworkers in similar work situations. They desire to be treated fairly.

• performance = rewards.

• These are called inputs and outputs.

 INPUTS

• Inputs may include effort, loyalty, hard work, commitment, skill, ability,
adaptability, flexibility, tolerance, determination, heart and soul, enthusiasm,
trust in the boss and superiors, support of colleagues and subordinates, and
personal sacrifice.
 OUTPUTS

• Outputs are all financial rewards - salary, expenses, perks, benefits, pension
arrangements bonus and commission - plus intangibles - recognition,
reputation, praise and thanks, Interest, responsibility, stimulus, travel,
training, development, sense of achievement and advancement, and
promotion.
 ADAM’S EQUITY THEORY

• This theory helps explain employee attitudes toward monetary rewards.

Managers get insights on how should monetary rewards and incentives be
equitably distributed.

• People need to see a balance of these inputs and outputs.

 PROCEDURAL JUSTICE

• refers to people's reaction to company decisions and processes that affect

them. They are concerned with the fairness of these processes and
procedures. The basis of procedural justice is distributive justice. It has a
great impact on organizational commitment, trust with superiors, length of
service, and job performance.
 LOCKE'S GOAL
SETTING THEORY
EDWIN LOCKE ASSERTS THAT THE PRIMARY DETERMINANTS OF
BEHAVIOR ARE THE INDIVIDUAL'S GOALS AND OBJECTIVES.

The important goal attributes are:

a.Goal specificity - It is the degree of goal an individual wants to achieve.
b. Goal difficulty -It is the amount of effort required to achieve the goal.
c. Goal intensity -It is the process of determining how to achieve the goal.
d.Goal commitment - It is the amount of effort used to achieve the goal.
EXCHANGE
THEORY
• People engage in give-and-take relationships.
• The psychological contract is an unwritten agreement between the
individual and the organization that specifies the kind of exchange or
expectations of the company and employee from each other.
 MCGREGOR'S
THEORY X AND Y
• Theory X - employs the authoritarian management style to get people
motivated on the job.

• Theory Y- employs the participative management style. Work is as

natural as play.
JOB ANALYSIS
JOB ANALYSIS
JOB ANALYSIS IS NEEDED ESPECIALLY IN APPLYING THE RIGHT TYPE
OF MOTIVATIONAL TECHNIQUES THEIR EMPLOYEES NEED.
• THE THREE BASIC ELEMENTS OF JOB ANALYSIS
• 1. JOB CONTENT - THIS CONTAINS THE ACTIVITIES THAT THE
EMPLOYEES SHOULD PERFORM ON THE JOB.
• 2. JOB REQUIREMENTS - THESE CONTAIN THE MINIMUM
QUALIFICATIONS NECESSARY TO PERFORM THE JOB.
• 3. JOB CONTEXT - THIS PROVIDES THE WORKING CONDITIONS AND
PHYSICAL DEMANDS OF THE JOB.
 The result of Job Analysis is called Job Design

Three characteristics of Job Design

1. Job Range - It is the number of tasks an employee performs.
2. Job Depth - It is the amount of discretion an employee has in
performing the job.
3.Job Relationships - It distinguishes the jobs in the organization and
across other organizations.
• Job Rotation involves rotating the employee from one job to
another which enhances variety in job content.

• Job Enlargement is a way of increasing the number of tasks a

job holder performs.
JOB SATISFACTION
Four factors that help employees achieve Job Satisfaction.
1. Mentally Challenging Work
2. Equitable Rewards
3. Supportive Working Conditions
4. Supportive Colleagues
PERFORMANCE
EVALUATION
PERFORMANCE EVALUATION IS
DEFINED AS A FORMAL AND
PRODUCTIVE PROCEDURE TO
MEASURE AN EMPLOYEE'S WORK
AND RESULTS BASED ON THEIR JOB
RESPONSIBILITIES.

 PERFORMANCE EVALUATION ALSO
PLAYS A DIRECT ROLE IN PROVIDING
PERIODIC FEEDBACK TO
EMPLOYEES, SUCH THAT THEY ARE
MORE SELF-AWARE IN TERMS OF
THEIR PERFORMANCE METRICS.
 • Develop an evaluation form.
5 STEPS TO A • Identify performance measures.
PERFORMANCE • Set guidelines for feedback.
EVALUATION • Create disciplinary and termination
SYSTEM procedures.
• Set an evaluation schedule.
 Performance evaluations measure
progress and help a person set professional
CHARACTERISTICS goals.
OF AN EFFECTIVE • Explain the appraisal process.
PERFORMANCE • Clarify job expectations.
EVALUATION
• Review and update job skills.
• Review accomplishments and goals.
• Final steps and rewards.
 • The purposes of the annual performance
evaluation process are to promote
WHAT IS THE communication and provide useful
PURPOSE OF feedback about job performance, to
PERFORMANCE facilitate better working relationships, to
EVALUATION? provide an historical record of
performance and to contribute to
professional development.
REWARD SYSTEM
• THE REWARD SYSTEM IS A GROUP OF
NEURAL STRUCTURES RESPONSIBLE FOR
INCENTIVE SALIENCE (I.E., MOTIVATION
AND "WANTING"; DESIRE OR CRAVING FOR
A REWARD),ASSOCIATIVE LEARNING
(PRIMARILY POSITIVE REINFORCEMENT
AND CLASSICAL CONDITIONING), AND
POSITIVELY-VALENCED EMOTIONS,
PARTICULARLY ONES INVOLVING
PLEASURE AS A CORE COMPONENT.

REWARD IS THE ATTRACTIVE AND

MOTIVATIONAL PROPERTY OF A STIMULUS
THAT INDUCES APPETITIVE BEHAVIOR,
ALSO KNOWN AS APPROACH OR
CONSUMMATORY BEHAVIOR.
 • Monetary Reward Systems
TYPES OF • Non-Monetary Reward Systems
REWARD • Employee Assistance Programs

SYSTEM • Employee Recognition Programs

 Reward strategy concerns the design and
implementation of reward policies and practices
REWARD which support and advance the objectives of the

STRATEGIES organization. All organizations have choices

about how to reward employees.
 • Get employees involved
HOW DO YOU • Tie rewards to company goals
IMPLEMENT A • Be specific and consistent
REWARD
• Reward behaviors
SYSTEM?
• Reward teams
EFFECTIVE When employees are motivated to work at higher
levels of productivity, the organization as a
REWARD whole runs more efficiently and is more effective
at reaching its goals
SYSTEM?
 Reward systems exist in order to motivate employees
to work towards achieving strategic goals which are set
by entities.
WHAT IS THE
Reward management is not only concerned with pay
PURPOSE OF and employee benefits. It is equally concerned with
REWARD? non-financial rewards such as recognition, training,
development and increased job responsibility.
 In business, employee reward systems refer
WHAT IS THE to programs set up by a company to reward
performance and motivate employees on
PURPOSE OF individual and/or group levels. They are
REWARD? normally considered separate from salary
but may be monetary in nature or otherwise
have a cost to the company
THANK YOU!