Chapter 4:

Motivating Self and Others

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 Learning Outcomes
1. What is motivation?
2. How do needs motivate people?
3. Are there other ways to motivate people?
4. Do equity and fairness matter?
5. Does money motivate? Does anything
else?
6. What kinds of mistakes are made in
reward systems?
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 • Motivation
– The intensity, direction, and persistence
of effort a person shows in reaching a
goal:
• Intensity: How hard a person tries
• Direction: Where effort is channelled
• Persistence: How long effort is
maintained

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 Theory X and Theory Y
• Theory X Assumptions • Theory Y Assumptions

– Employees dislike work – Employees like to work

– Employees attempt to – Employees are creative,

avoid work and seek responsibility

– Employees must be – Employees can exercise

coerced(forced), controlled, self-direction and self-
or threatened with control.
punishment if they are to
perform.

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 Motivators
• Intrinsic Motivators
– A person’s internal desire to do something
• interest, challenge, and personal satisfaction

• Extrinsic Motivators
– Motivation that comes from outside the
person
• pay, bonuses, and other tangible rewards

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 Needs Theories of Motivation
• Needs theories
– types of needs that must be met in order to
motivate individuals.

• Process theories
– actual ways in which we and others can be
motivated.
• Maslow’s Hierarchy of Needs Theory
• Alderfer’s ERG Theory
• Herzberg’s Motivation-Hygiene Theory
• McClelland’s Theory of Needs

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 Maslow’s Hierarchy of Needs
• Physiological
– Includes hunger, thirst, shelter, sex, and other bodily needs
• Safety
– Includes security and protection from physical & emotional harm
• Social
– Includes affection, belongingness, acceptance, and friendship
• Esteem
– Includes internal esteem factors: self-respect, autonomy, and
achievement
– Includes external esteem factors: status, recognition, and attention
• Self-actualization
– The drive to become what one is capable of becoming
– Includes growth, achieving one’s potential, and self-fulfillment

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 Exhibit 4-1 - Maslow’s
Hierarchy of Needs

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 Alderfer’s ERG Theory
• Existence
– Concerned with providing basic material existence
requirements.

• Relatedness
– Desire for maintaining important interpersonal
relationships.

• Growth
– Intrinsic desire for personal development.
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 Alderfer’s ERG Theory
• Motivators • Hygiene factors
– Sources of – Sources of
satisfaction dissatisfaction
– Intrinsic factors – Extrinsic factors
(context of work)
(content of work)
• Company policy and
• Achievement
administration
• Recognition • Unhappy relationship with
• Challenging, varied, employee’s supervisor
or interesting work • Poor interpersonal
• Responsibility relations with one’s peers
• Advancement • Poor working conditions
• Growth

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 McClelland’s Theory of Needs
• Need for achievement
– The drive to excel, to achieve in relation to a set of
standards, to strive to succeed

• Need for power

– The need to make others behave in a way that they
would not have behaved otherwise

• Need for affiliation

– The desire for friendly and close interpersonal
relationships
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 Summary: Hierarchy of Needs
• All the need theories propose a similar idea: Individuals have
needs that, when unsatisfied, have the potential to create
motivation.

• Maslow: Argues that lower-order needs must be satisfied before one

progresses to higher-order needs.

• Herzberg: Motivators lead to satisfaction. Hygiene factors must be met

if person is not to be dissatisfied. However, they will not lead to
satisfaction.

• Alderfer: More than one need can be important at the same time. If a
higher-order need is not being met, the desire to satisfy a lower-level
need increases.

• McClelland’s: People vary in the types of needs they have. Their

motivation and how well they perform in a work situation are related to
whether they have a need for achievement, affiliation, or power.
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 Goal-Setting Theory
• The theory that specific and difficult goals lead
to higher performance.
– Goals tell an employee what needs to be
done and how much effort will need to be
expended.

– Specific hard goals produce a higher level of

output than does the generalized goal of “do
your best.”
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 Management by Objectives
• A program that encompasses:
– Specific goals (tangible, verifiable, and
measurable)

– Participative decision-making

– Explicit(clear) time period

– Performance feedback

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 Self-Efficacy Theory
• Self Efficacy also known as social
cognitive theory and social learning theory

• An individual’s belief that he or she is

capable of performing a task.
– The higher your self efficacy the more
confident you are in your ability to succeed in
a task

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 Equity Theory
• Equity theory recognizes that individuals
are concerned not only with the absolute
amount of rewards for their efforts, but
also with the relationship of this amount to
what others receive.

• Individuals compare their job inputs and

outcomes with those of others and then
respond so as to eliminate any inequities.
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 What Happens When We Feel
Treated Inequitably?
• Change their • Adjust perceptions
inputs. of others.

• Change their • Choose a different

outcomes. referent.

• Adjust perceptions • Leave the field.

of self.

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 Fair Process and Treatment
• Equity is thought of from various standpoints
– Distributive Justice
– Organizational Justice
– Procedural Justice
– Interactional Justice

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 Self-Determination Theory
• People prefer to feel they have control
over their actions

• If a previously enjoyed task feels more like

an obligation than a freely chosen activity,
it will undermine motivation.

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 Four Key Rewards to Increase Intrinsic
Motivation

1. Sense of choice
2. Sense of competence
3. Sense of meaningfulness
4. Sense of progress

• Managers can act in ways that will build

these intrinsic rewards for their
employees.

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 Employee Recognition: Showing
People That They Matter
• Recognition is the most powerful motivator
• Key component of motivation is the link
between performance and reward
• Range from a spontaneous and private “thank
you” on up to widely publicized formal
programs
• Some research suggests financial incentives
may be more motivating in the short term, but
in the long run it’s nonfinancial incentives that
are motivating.
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 Variable-Pay Programs and
Improving Productivity
• Variable-pay programs
– a portion of an employee’s pay is based
on some individual and/or organizational
measure of performance

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 Variable-Pay Programs and
Improving Productivity
• Individual Based Incentives
– Piece-Rate Wages
– Merit-Based Pay
– Bonuses
• Group-Based Incentives
– Gainsharing
• Organizational-Based Incentives
– Profit-Sharing Plans
– Employee Stock Ownership Plans and Stock
Options
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 Provide Performance Feedback
• Managers are uncomfortable discussing
performance weaknesses directly with
employees.

• Many employees tend to become

defensive when their weaknesses are
pointed out.

• Employees ten to have an inflated

assessment of their own performance.
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 Summary and Implications
1. What is Motivation?
– Motivation is the process that accounts for an individual’s
intensity, direction, and persistence of effort toward
reaching the goal.
2. How do needs motivate people?
– All needs theories of motivation propose a similar idea:
individuals have needs that, when unsatisfied, will result
in motivation.
3. Are there other ways to motivate people?
– Process theories focus on the broader picture of how
someone can set about motivating another individual.
Process theories include expectancy theory and goal
setting theory (and its application, management by
objectives).

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 Summary and Implications
4. Do equity and fairness matter?
– Individuals look for fairness in the reward system. Rewards
should be perceived by employees as related to the inputs
they bring to the job.
5. Does money motivate? Does anything else?
– Some studies indicate that money is not employees’ top
priority. When organizations want to reward individuals for
specific high performance, they often turn to employee
recognition programs.
6. What kinds of mistakes are made in reward systems?
– Rewards should be linked to the type of performance
expected. Rewards are also culture-bound. Individuals
respond to rewards in general and specific rewards differently,
depending upon what culture they come from. Finally, rewards
are not always necessary. In the right context, individuals
often motivate themselves intrinsically and can achieve quite
high levels of performance doing so.
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