Management and Organisational Behaviour

7th Edition

CHAPTER 12

Work Motivation and Rewards

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.2

The meaning of motivation

• The driving force within individuals by which

they attempt to achieve some goal in order to
fulfil some need or expectation

• The degree to which an individual wants and

chooses to engage in certain behaviour

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.3

Common characteristics underpinning definitions

of motivation

• Motivation is typified as an individual

phenomenon
• Motivation is described, usually, as intentional
• Motivation is multifaceted
• The purpose of motivational theories is to
predict behaviour

Mitchell

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.4 Figure 12.1

A basic motivational model

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.5

Intrinsic & extrinsic motivation

Extrinsic motivation Intrinsic motivation

Related to tangible Related to

rewards, e.g. salary, psychological rewards,
security, promotion, e.g. a sense of
conditions of work challenge and
achievement, receiving
appreciation

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.6

Higher set of motivational needs system

• Attachment / affiliation – the need for

engagement & sharing, a feeling of
community and a sense of belonging

• Exploration / assertion – the ability to play &

work, a sense of fun & enjoyment, the need
for self-assertion & the ability to choose
Kets de Vries

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.7

Broad classification for motivation at work

• Economic rewards – such as pay, fringe

benefits, pension rights, security (instrumental
orientation)
• Intrinsic satisfaction – derived from the
nature of work itself (personal orientation)
• Social relationships – such as friendships,
group working, status & dependency
(relational orientation)

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.8 Figure 12.2

The needs & expectation of people at work

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.9

Culture & motivating factors

• Identification • Rationality
• Equity • Development
• Equality • Group dynamics
• Consensus • Internalisation
• Instrumentality

Cartwright

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.10 Figure 12.3

A basic model of frustration

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.11

Factors influencing frustration

• The level & potency of need

• The degree of attachment to the desired goal
• The strength of motivation
• The perceived nature of the barrier or blocking
agent
• The personality characteristics of the
individual

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.12

Ways managers can reduce potential frustrations

• Effective recruitment, • Recognition & rewards

selection & socialisation
• Effective communications
• Training & development
• Participative styles of
• Job design & work management
organisation
• Attempting to understand
• Equitable personnel the individual’s perception
policies of the situation

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.13

Money as a motivator

Rational – economic concept

Taylor asserted that what workers wanted from

employers was high wages

‘Theory M’ (Weaver) – based on direct cash rewards for

above average performance

In a survey of HR managers 62% of respondents had a

problem retaining minimum wage workers strictly on pay.
Other incentives were needed to keep workers in a job

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.14

Motivation other than money

Historically loyalty was bought & employees

offered gradual progression up the hierarchy, a
decent salary & job security in return for a hard
day’s work

Increasingly motivation is based on values

rather than purely a financial reward
Grayson & Hodges

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.15 Figure 12.4
Main theories of work motivation

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.16 Figure 12.5

Maslow’s hierarchy of needs

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.17

Relating Maslow’s model to work situations

There are a few problems doing this –

• People do not necessarily satisfy their needs,
especially higher-level needs, just through work
• There is doubt about the time that elapses between
satisfying lower-level & emergence of higher-level
needs
• Some rewards or outcomes may satisfy more than
one need
• The motivating factors may not be the same for each
person

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.18 Table 12.1

Applying Maslow’s hierarchy

Source: Steers, R.M. and Porter, L.W., Motivation and Work Behaviour, Fifth edition, McGraw-Hill (1991) p.35. Reproduced
with permission from The McGraw-Hill Companies Inc.

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.19 Table 12.1

Applying Maslow’s hierarchy

Source: Steers, R.M. and Porter, L.W., Motivation and Work Behaviour, Fifth edition, McGraw-Hill (1991) p.35. Reproduced
with permission from The McGraw-Hill Companies Inc.

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.20

Alderfer’s modified approach

• Existence needs – concerned with sustaining human

existence & survival and covers physiological & safety
needs of a material nature
• Relatedness needs – concerned with relationships to
the social environment and covers love or belonging,
affiliation, and meaningful interpersonal relationships
• Growth needs – concerned with the development of
potential and covers self-esteem & self-actualisation

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.21 Figure 12.6
Herzberg – two factor theory

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.22

McClelland’s achievement motivation theory

Based on four arousal-based & socially developed

motives –

• Achievement
• Power
• Affiliative
• Avoidance

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.23

Stages in developing achievement drive

• Striving to attain feedback on performance

• Developing models of achievement by
seeking to emulate people who have
performed well
• Attempting to modify self-image & to see
themselves as needing challenges & success
• Controlling day-dreaming & thinking about
themselves in more positive terms
McClelland

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.24

Process theories of motivation

• Expectancy-based models – Vroom and

Porter & Lawler
• Equity theory – Adams
• Goal theory – Locke
• Attribution theory – Heider and Kelley

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.25 Figure 12.8
Basic model of expectancy theory

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.26 Figure 12.10
Lawler’s expectancy model

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.27

Implications for managers of expectancy theories

Managers need to –
• Use rewards appropriate in terms of individual
performance
• Attempt to establish clear relationships between
effort-performance & rewards, as perceived by the
individual
• Establish clear procedures for the evaluation of
individual levels of performance
• Pay attention to intervening variables
• Minimise undesirable outcomes that may be
perceived to result from a high level of performance,
e.g. industrial accidents

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.28

Behaviour as a consequence of inequity

Six broad types of possible behaviour as

consequences of inequity –
• Changes to input levels
• Changes to outcomes
• Cognitive distortion of inputs & outcomes
• Leaving the field
• Acting on others

Adams

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.29

Practical implications of equity theory

• It provides managers with another explanation of
how beliefs & attitudes affect job performance

• It emphasises the need for managers to pay

attention to employees’ perceptions of what is
fair & equitable

• Managers benefit by allowing employees to

participate in decisions about important work
outcomes

Kreitner et al.

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.30

Practical implications of equity theory

• Employees should be given the opportunity to

appeal against decisions that affect their welfare

• Employees are more likely to accept & support

organisational change when they believe it is
implemented fairly

Kreitner et al.

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
OHT 12.31 Figure 12.12

Locke’s theory of goal setting

Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited