Motivation Theories

Motivation Principles

 Theory X and Y
 Theory Z

Content / Need Theory Process Theory Reinforcement

• Equity Theory Theory
• Maslow’s Need Hierarchy
• Expectancy
• Herzberg’s Two-Factor
Theory • Positive Reinforcement
Theory • Goal Setting • Negative Reinforcement
• Alderfer’s ERG Theory
Theory • Punishment
• McClelland’s Manifest
• Learning Theory
Needs
 Motivation
 Motivation is the processes that account for an individual’s
Direction, level and persistence of effort toward attaining a goal.

 Direction refers to an  Level refers to the  Persistence refers

 Direction refers to an
individual’s choice when
individual’s choice when
presented with a number of
presented with a number of
possible alternatives.
possible alternatives.
 Level refers to the  Persistence refers
amount of effort a to the length of time
amount of effort a to the length of time
person puts forth. a person sticks with a
person puts forth. a person sticks with a
given action.
given action.

 Motivation is a psychological drive that directs a person toward an

objective
Theory X and Theory Y
Theory X Theory Y

 Douglas McGregor,
an American social
psychologist,
proposed his famous
X-Y theory in 1960.
 Theory X and theory
Y are still referred to
commonly in the field
of management and
motivation.
Theory X and Theory Y
 Management Style
Theory X and Theory Y
Theory X Theory Y

Employee is lazy Employee is not lazy

Managers must Must create work setting

closely supervise to build initiative

Create strict rules & Provide authority to

defined rewards workers
 Theory X and Theory Y
Limitations:
 Describes two CONTRASTING / EXTREME model of motivation.
 It is based on the perceptions managers hold on their employees.
 Employees who are demotivated can be motivated with right reward
and guidance.
 Managers need to alter their managerial style according the
subordinates.
Theory Z

 William Ouchi researched the cultural differences between Japan and

USA.

 USA culture emphasizes the individual, and managers tend to feel

workers follow the Theory X model.

 Japan culture expects workers committed to the organization first

and thus behave differently than USA managers.
Theory X, Y and Z

 Managers stress long-term employment, individual

responsibility within a group context, organizational
focus, well-being of the employee and high employee
morale and satisfaction.
Content / Need Theory
Content Theory:
“focus primarily on individual needs—the physiological or
psychological deficiencies that we feel a compulsion to reduce
or eliminate.”

 Managers’ job is to create a work environment that responds

positively to individual needs
 Maslow’s Hierarchy of Needs

 “within every human being, there exists a hierarchy of five needs”

 Although no need is ever fully gratified, a substantially satisfied need no longer motivates.

 Thus as each becomes substantially satisfied, the next one becomes dominant.

 “So if you want to motivate someone, according to Maslow, you need to

understand what level of the hierarchy that person is currently on and focus on
satisfying needs at or above that level, moving up the steps”
Maslow’s Hierarchy of Needs
Self-Actualization

Upper Order
Needs
Esteem

Social

Safety Lower
Order
Needs

Physiological
 Maslow’s Hierarchy of Needs

Physiological: Safety: Social: Esteem: Self-

Physiological: Safety: Social: Esteem: Self-
Internal factors Actualization:
Most basic of all Internal factors Actualization:
Most basic of all physical safety Affection, such as self- Highest need
human needs; the physical safety Affection, such as self- Highest need
human needs; the and security, belongingness, respect, level; need to
need for food, and security, belongingness, respect, level; need to
need for food, family, stability, acceptance, and achievement, and fulfill oneself; the
sleep, water, family, stability, acceptance, and achievement, and fulfill oneself; the
sleep, water, and economic friendship external factors need to realize
shelter etc. and economic friendship external factors need to realize
shelter etc. security and such as status, one’s potential, to
security and such as status, one’s potential, to
stability in the recognition, and grow, to be
stability in the recognition, and grow, to be
physical and attention. creative, and to
physical and attention. creative, and to
inter-personal accomplish
inter-personal accomplish
events
events
Herzberg’s Two-Factor Theory (Hygiene Theory)
 Psychologist Frederick Herzberg wondered:
“What do people want from their jobs?”

 He asked people to describe, in detail, situations in which they felt exceptionally good
or bad about their jobs.
 The responses led Hertzberg to categorize Two Factors of job motivations:
1. Hygiene Factors
2. Motivational Factors
Herzberg’s Two-Factor Theory
(Hygiene Theory)
Hygiene Factors Motivational Factors
• Career Advancement
• Quality of supervision
• Personal growth
• Rate of pay
• Company policies • Recognition
• Working conditions • Responsibility
•Job security • Achievement
•Work itself
Herzberg’s Two-Factor Theory

Motivator
factors are
sources of job
satisfaction

Hygiene factors are

sources of job
dissatisfaction.
 Alderfer’s ERG Theory
 This model summarizes Maslow’s five levels of need into only three levels based on the
core needs of existence, relatedness and growth

 Existence needs are concerned with sustaining human existence and survival and
cover
physiological and safety needs of a material nature.
 Relatedness needs are concerned with relationships to the social environment and
cover love or belonging, affiliation and meaningful interpersonal relationships
 Growth needs are concerned with the development of potential and cover self-
esteem and self-actualisation
Alderfer’s ERG Theory
 Like Maslow, Alderfer suggests that individuals progress through the hierarchy
from existence needs to relatedness needs to growth needs as the lower-level needs
become satisfied.
 However ,Alderfer suggests these needs are more a range than hierarchical levels.
More than one need may be activated at the same time.
 Individuals may also progress down the hierarchy.
 lower-level needs do not have to be satisfied before a higher-level need emerges as
a motivating influence.
 McClelland’s Theory of Needs
 Three human needs

Need for Need for power: Need for affiliation:

achievement:
desire to control desire to establish
desire to do something others, to influence and maintain friendly
better or more
their behaviors, or to and warm relations
efficiently, to solve
problems, or to master be responsible for with others
complex tasks. others.
 Motivation Principles :
Reinforcement Theory
Process Theory

Focus on the thought or cognitive processes that take

place within the minds of people and that influence their
behavior.

 Whereas a content approach may identify job security as an

important need for an individual, a process approach probes
further to identify why the person behaves in particular ways
relative to available rewards and work opportunities.
Equity Theory/Organizational Justice
 Equity theory is based on the phenomenon of social comparison and is
best applied to the workplace.

 A theory that says that individuals compare their job inputs and
outcomes with those of others and then respond to eliminate any
inequities.

 Output: salary levels, raises, recognition

 Input: effort, experience, education, competence
There are four referent comparisons:
 1. Self–inside: An employee’s experiences in a different position inside the
employee’s current organization.
 2. Self–outside: An employee’s experiences in a situation or position outside the
employee’s current organization.
 3. Other–inside: Another individual or group of individuals inside the
employee’s organization.
 4. Other–outside: Another individual or group of individuals outside the
employee’s organization.
Equity Theory

 Felt negative inequity exists when an individual feels that he

or she has received relatively less than others have in
proportion to work inputs. It creates anger, demotivation

 Felt positive inequity exists when an individual feels that he

or she has received relatively more than others have in
proportion to work inputs. “Creates guilt.”
Equity Theory

Equity Theory
Ratio Employee’s
Comparison* Perception
Outcomes A < Outcomes B Inequity (Under-Rewarded)
Inputs A Inputs B
Outcomes A = Outcomes B Equity
Inputs A Inputs B
Outcomes A > Outcomes B Inequity (Over-Rewarded)
Inputs A Inputs B

*Where A is the employee, and B is a relevant other or referent.

Equity Theory

 When either feelings exist, the individual will likely engage in certain behaviors
to restore a sense of equity.
 1. Change inputs (exert less effort if underpaid or more if overpaid).
 2. Change outcomes (individuals paid on a piece-rate basis can increase their
pay by producing a higher quantity of units of lower quality).
 3. Distort perceptions of self
 4. Distort perceptions of others
 5. Choose a different referent
 6. Leave the field (quit the job)
Expectancy Theory
 Expectancy theory argues that the strength of our tendency to act a
certain way depends on the strength of our expectation of a given
outcome and its attractiveness.

 Employees are motivated if the expected outcome is

attractive / desirable to them
Expectancy Theory
Expectancy Theory
 Expectancy Model of Motivation

Effort Performance Reward

Perceived effort– Perceived

Perceived
performance performance–
value of reward
probability reward probability
“If I work hard, “Will I be rewarded of “What rewards
will I get the job I get the job well do I value?”
done?” done?”
Expectancy Theory
Managerial Implications of Expectancy Theory

• Identify good performance so appropriate behaviors can be rewarded.

• Make sure employees can achieve targeted performance levels.
• Determine the outcomes of employees value.
• Link desired outcomes/reward to targeted levels of performance.
• Make sure changes in outcomes/reward are large enough to motivate high
effort.
• Monitor the reward system for inequities.
Goal-Setting Theory
 Working towards a specific goal is more motivating than generalized goal such as “do your
best.

 Evidence strongly suggests that specific goals increase performance; that difficult goals,
when accepted, result in higher performance than do easy goals; and that feedback leads to
higher performance than does non feedback.

 Harder goals generates more motivation and effort: Do you study as hard for an
easy exam as you do for a difficult one?
Goal-Setting Theory
Implementing Goal-Setting
Management by Objectives (MBO): set goals that are specific, realstic
and measurable.
Reinforcement Theory
Reinforcement Theory
 controlling an individual’s behavior by manipulating its
consequences.

  “An individual’s behavior is a function of its consequences" 

 Behavior is a “law of effect”, i.e, individual’s behavior with positive

consequences tends to be repeated, but individual’s behavior with
negative consequences tends NOT to be repeated
Reinforcement Theory
 Positive Reinforcement
The administration of positive consequences that tend to increase the likelihood of
repeating the desirable behavior in similar settings.

 Negative Reinforcement
The withdrawal of negative consequences which tend to increase the likelihood of
repeating the desirable behavior in similar settings.
Reinforcement Theory
 Reinforcement theory of motivation overlooks the internal state of
individual, i.e., the inner feelings and drives of individuals are
ignored by Skinner.
 This theory focuses totally on what happens to an individual when
he takes some action. Thus, according to Skinner, the external
environment of the organization must be designed effectively and
positively so as to motivate the employee. 
Application of Motivation Principles
 Job Satisfaction: A general attitude (not a behavior) toward one’s job; a positive feeling of
one's job resulting from an evaluation of its characteristics

 The five facets of job satisfaction measured by Job Descriptive Index (JDI) are:

 The work itself: responsibility, interest, and growth

 Quality of supervision: technical help and social support
 Relationships with co-workers: social harmony and respect
 Promotion opportunities: chances for further advancement
 Pay: adequacy of pay and perceived equity vis-à-vis others
Application of Motivation Principles

 Job rotation - Periodic shifting of an employee from one task to another.

 Job enlargement (horizontal )- Increasing the number and variety of tasks that
an individual performed

 Job enrichment - Refers to vertical expansion of jobs. An enriched job

organizes tasks so as to allow the worker to do a complete activity, increases the
freedom, independence, and responsibility.