Weihrich and Koontz

© 2010

An International
Perspective
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Chapter Objectives
After studying this chapter, you should be able to:

1. Define the nature of leading and leadership

2. Describe the basic human factors that affect managing

3. Explain the meaning of motivation

4. Describe the various theories of motivation and their

strengths and weaknesses

5. Analyze motivational techniques, with emphasis on the role

of money, participation, the quality of working life and, job
enrichment

6. Present a systems and situational approach to motivation

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Definition of Leading

Leading is the process of influencing

people so that they will contribute to
organizational and group goals.
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What is Managing?
Managing requires the creation and
maintenance of an environment in
which individuals work together in
groups toward the accomplishment of
common objectives.
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HUMAN FACTORS IN
MANAGING

• Multiplicity of Roles
• No Average Person
• The Importance of Personal Dignity
• Consideration of the Whole Person
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What is MOTIVATION?
• Motivation is derived from the word motive.
Motives may be defined as needs, wants, drives
or impulses within an individual.
• Motivation refers to the way in which desires,
drives, aspirations, strivings or needs, direct /
control the behavior of human beings.
• Motivation means a process of stimulating
people to action to accomplish desired goals.
• Motivation has close relationship with the
behavior of human beings.
• It explains how and why the human behavior is
caused.
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MOTIVATION AND MOTIVATORS - Theories

• The need-want-satisfaction chain.
• Motivation-the carrot and the stick.
• Behavioral model of McGregor – Theory X and Theory Y
• Hierarchy of needs theory of Maslow
• Herzberg’s Motivation – hygiene approach
• Expectancy theory of motivation - The Vroom Theory
• The Porter and Lawler Motivation Model
• Equity theory
• Goal Setting Model
• Skinner’s Reinforcement theory
• Mcclelland’s needs theory of motivation
• Special motivational techniques
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Theory X and Theory Y of McGregor

 Theory X and Theory Y are two sets of

assumptions about the nature of people .

 Example of Theory X
• Average human beings have an inherent
dislike of work and will avoid it if they can.
• Because of this characteristic, most people
must be coerced, controlled, directed, and
threatened with punishment to put forth
effort to achieve objectives.
• Average human beings prefer to be directed,
wish to avoid responsibility, have little
ambition and want security above all.
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Theory X and Theory Y

• Example of Theory Y
 The expenditure of physical effort and mental
effort in work is as natural as play or rest.
 External control and threat of punishment are
not the only means for producing effort to
achieve organizational goals.
 People will exercise self direction and self
control to achieve objectives for which they are
committed.
 The degree of commitment to objectives is in
proportion to the size of rewards associated.
▫ Contd……
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Theory Y
• Average human beings learn, under proper
conditions, not only to accept responsibility but also
seek it.
• 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 conditions of modern industrial life, the
intellectual potentialities of the average human
being are partially utilized.
• Theory X and Y are only assumptions of human
behavior which needs to be tested against ground
reality.
• Different approaches work in different situations.
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THE HIERARCHY OF NEEDS

THEORY

Maslow stated that when one set of

needs is satisfied, this kind of need
ceases to be a motivator and that
needs form a hierarchy.
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Maslow’s Hierarchy of Needs

• Physiological needs: Need for food, shelter, warmth,
sleep …. Basic needs that sustain life.
• Security or safety needs: People want to be free from
physical danger and of the fear of losing the job,
property, food or shelter.
• Affiliation or acceptance needs: Since people are social
beings, they need to belong, to be accepted by others.
• Esteem needs: When the affiliation need is satisfied,
people want to be held in esteem both by themselves
as well as by others. This need produces satisfactions
such as power, prestige, status and self confidence.
• Need for self actualization: Desire to become what one
is capable of becoming- one’s maximum potential
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Maslow’s Hierarchy of Needs

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ALDERFER'S ERG THEORY

ERG theory has only three categories of needs:
•Existence needs - similar to Maslow’s basic
needs.
•Relatedness needs – pertains to satisfactorily
relating to others.
•Growth needs – refers to self development,
creativity, growth and competence.
•It is likely that one may be motivated by needs
on all three levels at the same time.
•When people experience frustration on one
level, they may focus on the needs at a lower-
level needs category.
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HERZBERG’S MOTIVATION‑HYGIENE THEORY

• Herzberg propounded a two factor theory of
motivation : Dissatisfiers and Motivators
• Maintenance or hygiene or job context factors ,
absence of which would cause dissatisfaction. .
• First group of needs ( maintenance factors ) are
influenced by company policy, supervision,
working conditions, interpersonal relations, salary,
status, job security and personal life.
• According to Herzberg, absence of dissatisfiers are
not motivators.
• Second factor or Satisfiers are motivators
• They are related to job content : achievement,
recognition, challenging work, advancement, and
growth in the job.
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The satisfiers and dissatisfiers identified by Herzberg are

similar to the factors suggested by Maslow
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THE EXPECTANCY THEORY OF MOTIVATION

• Vroom holds that people will be motivated to

do things to reach a goal if :

• they believe in the worth of that goal and if

• they can see that what they do will help them

in achieving it ( goal).
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Force = Valence x Expectancy

• Force is the strength of a person's motivation
• Valence is the strength of an individual's
preference for an outcome
• Expectancy is the probability that a particular
action will lead to a desired outcome
• This is consistent with M.B.O. concepts
• Valence by involving subordinates in setting
objectives
• Expectancy by collaboratively setting,
meaningful / attainable objectives
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The Porter and Lawler Motivation Model

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EQUITY THEORY by J. Stacy Adams

Equity theory refers to an individual's subjective
judgments about the fairness of the reward she or he
got relative to the inputs, in comparison with the
rewards of others

Outcomes by a Outcomes by
person another person
------------------ = --------------------
Inputs by a Inputs by another
person person
•If people perceive inequitable reward, it results in
dissatisfaction.
•If they perceive equitable rewards, they will continue
at the same level of output.
•If rewards are more than equitable, they will put
greater effort, and some may discount the reward.
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Equity Theory
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GOAL SETTING THEORY OF MOTIVATION

•For objectives to be meaningful, they must be
clear, attainable, and verifiable.
•The objectives must be challenging yet they
must also be reasonable.
•To gain commitment to achieving the goals,
true participation in setting them is essential.
•Chances are that, in the proper environment,
people tend to set goals higher than what their
superior would set them.
•Indeed, clear goals, if accepted, are by
themselves motivating.
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Goal Setting Theory of Motivation

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SKINNER’S REINFORCEMENT THEORY

Positive reinforcement or behavior modification
theory holds that individuals can be motivated by proper
design of their work environment and praise for their
performance and that punishment for poor performance
produces negative results.
•Proper design of work environment
•Praise for performance & recognition of performance
•Determine factors causing poor performance
•Eliminate troublesome factors and obstructions to
performance
•Prompt & regular feed – back of results
•Participative goal setting.
•Reward performance improvement by praise and
recognition.
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MCCLELLAND'S NEEDS THEORY OF MOTIVATION

McClelland identified three types of basic

motivating needs. They are:
the need for power, need for affiliation, and the
need for achievement.
All three needs – power, affiliation, and
achievement – are of particular relevance to
management and for enterprise to work well.

•Three basic motivation needs:

•Need for power n/ pwr
•Need for affiliation n/aff
•Need for achievement n/ach
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MCCLELLAND'S NEEDS THEORY OF MOTIVATION

• Need for power n/ pwr:

• Such persons seek positions of leadership, they
are good conversationalists, are forceful, often
argumentative, outspoken, hardheaded,
demanding. They enjoy teaching and public
speaking.
• Need for affiliation n/aff:
• Such persons derive pleasure from being loved,
avoid the pain of rejection by a social group,
maintain pleasant social relationships, ready to
console and help others in trouble.
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MCCLELLAND'S NEEDS THEORY OF MOTIVATION

• Need for achievement n/ach
• Such persons have intense desire for success
and equally intense fear of failure.
• They want to be challenged, and set
moderately difficult goals.
• They take realistic approach to risk, prefer to
analyze and assess problems, assume personal
responsibility for getting a job done.
• They tend to be restless, and like to work long
hours
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MCCLELLAND'S NEEDS THEORY OF MOTIVATION

• In research studies McClelland found that

entrepreneurs are high on need for achievement
and fairly high need for power and low on
affiliation.
• Managers generally show high on achievement and
power and low on affiliation.
• CEOs of large companies showed average
achievement motivation compared to presidents
of small companies.
• Upper and middle level managers of large
companies showed higher achievement motivation
than CEOs.
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SPECIAL MOTIVATIONAL TECHNIQUES

• Money is often more than monetary value.
• It can also mean status or power, or other things.
• Money could be wages, salaries, incentive pay,
bonuses, stock options, company paid insurance,
etc.
• Economists and most managers give high “value” to
money, but behavioral scientists tend to place it
low.
• Money as money is important for people raising a family
( managers in junior positions ) than senior managers
who are settled in life.
• Important to give competitive salary, wage structure to
attract and retain talent.
• Uniformity of salaries dulls the motivational value of
money.
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Money :
• People usually evaluate their compensation in
light of what their equals are receiving.
• However, salaries and particularly bonuses
must reflect individual performance, for money
to serve as a motivator.
• Money motivates better when prospective
payment is large relative to a person’s income.
• Traditionally, pay and promotion goes with
seniority in Japan.
• Pay may be based on individual, or group, and
organizational performance
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Other rewards considerations…

• Intrinsic rewards are psychological rewards that

employees get from doing meaningful work and
performing it well ;

• Extrinsic rewards usually financial, include

benefits, recognition, status symbols, and, of
course, money ( pay rises, bonuses )

• Motivation through the use of participation.

Participation is also recognition. It appeals to the
need for affiliation.
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Quality of working life (QWL)

• QWL is one of the most interesting
approaches to motivation.

• QWL program is a systems approach to job

design in the broad area of job enrichment.

• QWL contributes to improved productivity

and justifies higher pay and minimizes labor
disputes.
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JOB ENRICHMENT
• Job enlargement means enlarging the scope of
the job by adding similar tasks without
enhancing responsibility – horizontal spread.
• Job enrichment attempts to build into jobs a
higher sense of challenge and achievement – a
vertical spread to increase challenge,
achievement, recognition, and responsibility.
• It could be more freedom in deciding work
methods, work sequence, work pace,
acceptance or rejection of materials, more
participation, feed back on performance, and
involving the workers in the decisions relating to
plant layout, work place design.
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A SYSTEMS AND CONTINGENCY APPROACH

TO MOTIVATION
•Motivation must be considered from a systems
and contingency point of view.
•Given the complexity of motivating the people
with diverse personalities, and situations, there
is a risk of using a single motivator or group of
motivators.
•Human behavior must be looked upon as a
complex system of variables for motivation to
succeed.