THEORIES OF MOTIVATION

Stevin WilsonVijay RajShaukth AliAmit Sandeep Reshma PrashanthArun kumar Sateesh kumar

MotivationMotivation is a need or desire that energizes behavior and directs it towards a goal.

Needs (Internal stimuli)

Incentive(External Stimuli)

Perception EPPI

Ability

Motivation

Satisfaction

Reward

Performance

Productivity

MOTIVATION INPUTS BEHAVIORMOTIVATION

OUTPUTS

Content vs Process1. Content Theories

• “what” motivates people• individual needs and goals

Maslow, Alderfer, Herzberg and McCelland

2. Process Theories

“process” of motivation and “how” motivation occurs

Vroom, Porter & Lawler, Adams and Locke

INDIVIDUAL• MOTIVE: It is the key to an individual’s productive

life

• Job performance is a function of both ability and

motivation: Vroom and Lawler

• Learning plays an important role in acquiring more

abilities and better performance

Extrinsic & Intrinsic Motivation:

• Extrinsic: the rewards given by an organization to motivate its employees to make them perform better, induce extrinsic motivation. Directly related to the needs of an employee.

• Intrinsic: The influence on employees psychology that motivates them internally to perform higherInborn desire to work, perform higher,

psychological impact created by organization/ managers, good management practices

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Theories of Motivation

There are 2 types of theories:

Early behavioral Theories: these were started to evolve in 1950s. They represent a foundation from which contemporary theories have grown. Practicing managers still regularly use this theories and their terminology in explaining employee motivation. Contemporary way of thinking.

Contemporary Theories: These are referred to as contemporary theories because these theories are able to more appropriately explain the phenomenon of the motivation in the contemporary organizations.

Early Behavioral Theories of Motivation

• Maslow’s Hierarchy of needs theory

• McGregor’s Theory X and Theory Y

• Herzberg’s two-factor theory

• McClelland’s theory of needs

• Alderfer’s ERG theory

Maslow’s Hierarchy of NeedAbraham Harold Maslow (April 1, 1908 – June 8, 1970) was an American psychologist who was best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization. He stressed the importance of focusing on the positive qualities in people, as opposed to treating them as a "bag of symptoms.”Maslow's hierarchy of needs is often portrayed in

the shape of a pyramid with the largest, most fundamental levels of needs at the bottom and the need forself-actualization at the top.

The movement from one level to the next was termed satisfaction progression by Maslow, and it was assumed that over time individuals were motivated to continually progress upward through these levels.

Physiological needs—including food, water, sexual drive, and other subsistence-related needs;

Safety needs—including shelter, a safe home environment, employment, a healthy and safe work environment, access to health care, money, and other basic necessities;

Belonging needs—including the desire for social contact and interaction, friendship, affection, and various types of support;

Esteem needs—including status, recognition, and positive regard;

Self-actualization needs—including the desire for achievement, personal growth and development, and autonomy.

DEFECTS:

Maslow was primarily studying human behavior  so he was not concentrating on the effect on businesses.

In practice there are a number of problems with  Maslow’s approach:  Some levels of the hierarchy do not exist for some people .

Some rewards fit into more than one level,  e.g.  money  It can be difficult to recognize which level an individual is on  Self actualisation is never permanently achieved.

Alderfer’s ERG Theory

Clayton Paul Alderfer (born September 1, 1940 in Sellersville, Pennsylvania) is an American psychologist who further developed Maslow's hierarchy of needs by categorizing the hierarchy into his ERG theory (Existence, Relatedness and Growth). The three components identified by Alderfer

(1972) drew upon Maslow’s theory, but also suggested that individuals were motivated to move forward and backward through the levels in terms of motivators.

He reduced Maslow’s levels from five to the following three: • Existence—which related to Maslow’s first two needs, thus combining the physiological and safety needs into one level;

• Relatedness—which addressed the belonging needs;

• Growth—which pertains to the last two needs, thereby combining esteem and self-actualization.

Comparative view of Maslow’s and Alderfer’s Theory:

• Alderfer’s ERG theory is less restrictive as compared with Maslow.

• Alderfer’s theory represent the simplification of Maslow need priority theory.

• Alderfer has removed the restriction about the activation of need in any hierarchical order, he said that more then one theory can be activated at same point of time.

Alderfer believed that as you start satisfying higher needs, they become more intense (e.g., the power you get the more you want power), like an addiction.

Not everyone is motivated by the same things. It depends where you are in the hierarchy (think of it as a kind of personal development scale) 

Herzberg’s Two Factor Theory

Frederick Herzberg (1923 2000) asked just 200 workers  what motivated them  From this he developed his TWO FACTOR THEORY  Herzberg found that it is possible to split the things that motivators  into 2 groups – but not based around money.  Instead he split them according to MOTIVATORS and HYGIENE  FACTORS: 

Frederick Irving Herzberg (April 18, 1923 – January 19, 2000) born in Massachusetts was an American psychologist who became one of the most influential names in business management. He is most famous for introducing job enrichment and the Motivator-Hygiene theory. 

Herzberg’s ideas are linked to job enrichment This means that: 

1)Improvements in pay etc will not in themselves motivate workers .2) In order to motivate them workers likeBeing involved in the production of a complete unit 

Receiving feedback on their performance  Being given a range of different tasks to complete 

However:  Providing job enrichment can be very expensive  Herzberg’s findings where based on a very small sample  Similar surveys have obtained very different results.

McClelland’s Acquired Needs Theory

David Clarence McClelland (May 20, 1917 – March 27, 1998) was an American psychological theorist, noted for his work on Need Theory. McClelland is credited with developing the Achievement Motivation Theory commonly referred to as need achievement or n-achievement theory.

The idea here is that needs are acquired throughout life. That is, needs are not innate, but are learned or developed as a result of one’s life experiences. This theory focuses on three types of needs

The idea here is that needs are acquired throughout life. That is, needs are not innate, but are learned or developed as a result of one’s life experiences.This theory focuses on three types of needs:

• Need for achievement—which emphasizes the desires for success, for mastering tasks, and for attaining goals; • Need for affiliation—which focuses on the desire for relation- ships and associations with others; and, •Need for power—which relates to the desires for responsibility for, control of, and authority over others.

INTRINSIC FACTOR THEORIES OF MOTIVATION

• EXPECTANCY THEORY• PORTER AND LAWLER’S THEORY

• EQUITY THEORY• GOAL SETTING THEORY

EXPECTANCY THEORYDeveloped by Victor Vroom. Key expectancy theory variables: Expectancy - belief that working hard will

result in desired level of performance. Instrumentality - belief that successful

performance will be followed by rewards. Valence - value a person assigns to rewards

and other work related outcomes.

•Efforts-Performance relationship-It is related to the probability perceived by individual that exerting given amount of efforts will lead to performance expectancy) •Performance-Reward Relationship. The degree to which the individual believes that performing particular level will lead to attainment of desired outcome (instrumentality) •Reward- personal goal Relationship-The degree to which an organizational reward will satisfy individual needs and its attractiveness for the individual valence)

Expectancy is the belief that increased effort will lead to increased performance i.e. if I work harder then this will be better. This is affected by such things as:

Having the right resources available e.g. raw materials, time)

Having the right skills to do the job Having the necessary support to get the job

done (e.g. supervisor support, or correct information on the job)

•Instrumentality is the belief that if you perform well that a valued outcome will be received i.e. if I do a good job, there is something in it for me. This is affected by such things as: •Clear understanding of the relationship between performance and outcomes — e.g. the rules of the reward ‘game’ .•Trust in the people who will take the decisions on who gets what outcome •Transparency of the process that decides who gets what outcome

•Valence is the importance that the individual places upon the expected outcome.

Motivation (M), expectancy (E), instrumentality (I), and valence (V) are related to one another in a multiplicative fashion: M = E x I x V

• If either E, I, or V is low, motivation will be low.

PORTER AND LAWLER THEORYLyman W Porter and Edward E. Lawler developed a

more complete version of motivation depending upon expectancy theory.

This model is more comprehensive as it includes various aspects.

This is a multivariate model which explain the relationship that exists between job attitudes and job performance.

The assumptions are: Individual behaviour is determined by a

combination of factors that exists in the individual and are

presented

Individuals are considered to be rationale people who make conscious and logical decisions about their behaviour when they interact with other people in the organization.

Every individual have different needs ,desires and their goals are of varied nature.

On the basis of their expectations, individuals decide between alternate behaviours. The outcome of the efforts is related to the pattern of behaviours an individual display.

ADAM’S EQUITY THEORYDeveloped by J. Stacy Adams. When people believe that they have been

treated unfairly in comparison to others, they try to eliminate the discomfort and restore a perceived sense of equity to the situation.

Perceived inequity. Perceived equity

EQUITY THEORYPeople respond to perceived negative

inequity by changing Work inputs. Rewards received. Comparison points. Situation.

MANAGERIAL IMPLICATIONS OF EQUITY THEORYUnderpaid people experience anger. Overpaid people experience guilt. Perceptions of rewards determine motivational

outcomes. Negative consequences of equity comparisons

should be minimized, if not eliminated. Do not underestimate the impact of pay as a

source of equity controversies in the workplace. Gender equity. Comparable worth.

LOCKE’S GOAL SETTING THEORYDeveloped by Edwin Locke. Properly set and well-managed task

goals can be highly motivating. Motivational effects of task goals: provide direction to people in their

work. Clarify performance expectations. Establish a frame of reference for

feedback. Provide a foundation for behavioural

self-management.

Key issues and principles in the goal-setting process:

Set specific goals. Set challenging goals. Build goal acceptance and

commitment. Clarify goal priorities. Provide feedback on goal

accomplishment. Reward goal accomplishment.

Reinforcement theory

Reinforcement.– The administration of a consequence as

a result of a behavior.

– Proper management of reinforcement

can change the direction, level, and

persistence of an individual’s behavior.

Reinforcement Theory

Reinforcement Theory

Law of effect.– Theoretical basis for manipulating

consequences of behavior.– Behavior that results in a pleasant

outcome is likely to be repeated while behavior that results in an unpleasant outcome is not likely to be repeated.

Reinforcement Theory

Organizational behavior modification (OB Mod).

– The systematic reinforcement of desirable work behavior and the non reinforcement or punishment of unwanted work behavior.

– Uses four basic strategies:• Positive reinforcement.• Negative reinforcement.• Punishment.• Extinction.

Reinforcement Theory

Positive reinforcement.

– The administration of positive consequences to increase the likelihood of repeating the desired behavior in similar settings.

– Rewards are not necessarily positive reinforcers.

– A reward is a positive reinforcer only if the behavior improves.

Reinforcement Theory

Scheduling reinforcement.– Continuous reinforcement.

• Administers a reward each time the desired behavior occurs.

– Intermittent reinforcement.• Rewards behavior periodically —

either on the basis of time elapsed or the number of desired behaviors exhibited.

Reinforcement Theory

Negative reinforcement.

– Also known as avoidance.

– The withdrawal of negative

consequences to increase the likelihood

of repeating the desired behavior in a

similar setting.

Reinforcement Theory

Punishment.

– The administration of negative

consequences or the withdrawal of

positive consequences to reduce the

likelihood of repeating the behavior in

similar settings.

Reinforcement Theory

Extinction.– The withdrawal of the reinforcing

consequences for a given behavior.– The behavior is not unlearned; it simply

is not exhibited.– The behavior will reappear if it is

reinforced again.

Reinforcement Theory

McGregor’s Theory X & Theory Y

Douglas Murray McGregor (1906 – 1 October 1964) was a Management professor at the MIT Sloan School of Management and president of Antioch College from 1948 to 1954. He also taught at the Indian Institute of Management Calcutta.

 He examined how  managers attitudes affect how workers behave . He developed two extremes of managers:

Leaders (managers) who adhere to Theory X assume that the average person :

Dislikes work and attempts to avoid it

• Lacks ambition, wants no responsibility, and would rather follow than lead

• Is self-centered and, therefore, does not care about organizational goals

•Resists change

•Act irresponsibly (Weinbach, 2008)

• A Theory X type manager would be more inclined to use tangible rewards as incentives. They assume their authority is resented and adopt regulations that are designed to enforce compliance.

Leaders (managers) who adhere to Theory Y assume that:

•Work is a natural activity for people.

• People will be self-directed to meet their work objectives if they are committed to them.

• People will be committed to their objectives if rewards are in place that address higher needs, such as self-fulfillment.

• People will seek responsibility.

•Most people can handle responsibility, because creativity and ingenuity are common in the population.

•A Theory Y type manager acts in a way that communicates trust and a belief in staff member’s good intentions. They assume that staff members want to work toward organizational goal attainment and work to set up an environment that enhances growth (Weinbach, 2008).

How Useful Is McGregor’s Theory

It is important to realize that: 

•McGregor based his ideas on Maslow’s Hierarchy 

•McGregor’s theory is NOT a motivation theory 

•Most managers fall somewhere between McGregor’s 2 extremes 

In essence, all the theories that we have looked at tell us  that workers  are  different  and that money may not be the  only motivator!

Ouchi’s Theory Z

Introduction:

Developed by Dr. William Ouchi's also called "Japanese Management" style.

Theory Z focused on increasing employee loyalty to the company.

According to Ouchi, Theory Z management tends to promote:

Stable employment

High productivity

High employee morale and satisfaction

Ouchi’s Conclusion:

The secret to Japanese success, according to Ouchi, is not technology, but a special

way of managing people.

Ouchi claims that the results show:

Lower turnover

Increased job commitment

Dramatically higher productivity

ASSUMPTIONS MADE ON OBSERVATION:

Workers tend to want to build happy and intimate working relationships in an organization.

Workers have a high need to be supported by the company.

Workers highly value a working environment in which such things as family, cultures and traditions, and social institutions are regarded as equally important as the work itself.

Workers have a very well developed sense of order, discipline, a moral obligation to work hard, and a sense of cohesion with their fellow workers.

Workers can be trusted to do their jobs to their utmost ability, so long as management can be trusted to support them and look out for their well-being (Massie & Douglas, 1992).

Key Points:

High degree of confidence in workers by the management.

High degree of participation by the workers in Decision Making.

The employees must be very knowledgeable about the various issues of the company, as well as possess the competence to make those decisions.

DRAWBACKS:

Workers needed to be generalists, rather than specialists.

Promotions tend to be slower in this type of setting, as workers are given a much longer opportunity to receive training and more time to learn the ins and outs of the company's operations.

II. Financial versus Non-financial Rewards

• Financial• Non-financial

• “One person’s food is another person’s poison”

Direct

Indirect

Wage, Bonus, Profit sharing

Retirement plan, Paid leave, Purchase

discounts

III. Performance-Based versus Membership-Based Rewards

Performance-based rewards:

• Commissions• Piecework pay plans• Incentive systems• Group bonuses• Merit pay

Membership- based rewards: • cost-of-living increases salary• increases attributable to labor-market • conditions• seniority or time in rank, • credentials • specialized skill or future potential

Incentive Compensation Plans

1. Individual Incentives 2. Group Incentives 3. Organization-Wide Incentives

1.Individual incentive plans

• Merit pay - sum of money added to base salary (attributable solely to performance)

• Piecework plans – a. Straight piecework plans b. Differential piece-rate plans• Time-savings bonuses “Time saved=Output

generated”• Commission - % of sales price added to low base

wage.• Stock options