THEORIES OF MOTIVATION

Organizational Behavior

Submitted To: Madam Sehar Zulifqar

Submitted By: Muhammad Naveed Gujjar

Roll No. 8273

Class. MBA 4th (Morning)
Section. B
Date. 30-09-2009

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Motivation____________________________________________________
Motivation is a desire to achieve a goal, combined with the energy to work towards that
goal. Students who are motivated have a desire to undertake their study and complete the
requirements of their course.

Motivation is an important concept in psychology. It provides insight into why we may

behave the way we do. Motivation is an internal process that reflects the desire to
achieve certain goals. Motivation can be divided into two basic types: intrinsic
motivation and extrinsic motivation

Positive and negative Motivation

Sometimes a distinction is made between positive and negative motivation. Positive

motivation is a response which includes enjoyment and optimism about the tasks that you
are involved in. Negative motivation involves undertaking tasks because there will be
undesirable outcomes, e.g. failing a subject, if tasks are not completed.

Difference between Extrinsic and Intrinsic Motivation

Intrinsic Motivation____________________________________________
Intrinsic motivation refers to motivation that comes from inside an individual rather than
from any external or outside rewards, such as money or grades.

Examples:

 Writing short stories because you really enjoy writing them, reading a nonfiction
book because you are curious about the topic, and playing chess because you enjoy
effortful thinking are some intrinsic motivation examples.
 Happiness
 Personal goals, values, and morals
 Willingness and eagerness to learn
 Physiological, social, and self-esteem needs

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Extrinsic Motivation___________________________________________
Extrinsic motivation refers to motivation that comes from outside an individual. The
motivating factors are external, or outside, rewards such as money or grades. These
rewards provide satisfaction and pleasure that the task itself may not provide.

Examples:

 There are many possible extrinsic motivation examples. The writer who only writes
poems to be submitted to poetry contests would be one example of extrinsic
motivation. The person who dislikes sales but accepts a sales position because he or
she desires to earn an above average salary is another example of extrinsic
motivation. A third example of extrinsic motivation is selecting a major in college
based on salary and prestige, rather than personal interest in the major.
 Money
 People around you
 Good grades
 Rewards

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Maslow's hierarchy of needs_____________________________________

Maslow's hierarchy of needs is a theory in psychology, proposed by Abraham Maslow in

his 1943 paper A Theory of Human Motivation, which he subsequently extended to
include his observations of humans' innate curiosity.

Toward a Psychology of Being In this article, Abraham H. Maslow attempted to

formulate a needs-based framework of human motivation and based upon his clinical
experiences with people, rather than as did the prior psychology theories of his day from
authors such as Freud and B.F. Skinner, which were largely theoretical or based upon
animal behavior. From this theory of motivation, modern leaders and executive
managers find means of motivation for the purposes of employee and workforce
management. Abraham Maslow's book Motivation and Personality (1954), formally
introduced the Hierarchy of Needs.

Representation________________________________________________
Maslow's hierarchy of needs is predetermined in order of importance.[5] It is often
depicted as a pyramid consisting of five levels: the lowest level is associated with
physiological needs, while the uppermost level is associated with self-actualization needs,
particularly those related to identity and purpose. The higher needs in this hierarchy only
come into focus when the lower needs in the pyramid are met. Once an individual has
moved upwards to the next level, needs in the lower level will no longer be prioritized. If
a lower set of needs is no longer being met, the individual will temporarily re-prioritize
those needs by focusing attention on the unfulfilled needs, but will not permanently
regress to the lower level. For instance, a businessman at the esteem level who is
diagnosed with cancer will spend a great deal of time concentrating on his health
(physiological needs), but will continue to value his work performance (esteem needs)
and will likely return to work during periods of remission.

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Self-Actualization______________________________________________

Self-actualization is the summit of Maslow's motivation theory. It is about the quest of

reaching one's full potential as a person. Unlike lower level needs, this need is never fully
satisfied; as one grows psychologically there are always new opportunities to continue to
grow.
Self-actualized people tend to have motivators such as:
 Truth
 Justice
 Wisdom
 Meaning
Self-actualized persons have frequent occurrences of peak experiences, which are
energized moments of profound happiness and harmony. According to Maslow, only a
small percentage of the population reaches the level of self-actualization.

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Esteem Needs_________________________________________________

After a person feels that they "belong", the urge to attain a degree of importance emerges.
Esteem needs can be categorized as external motivators and internal motivators.
Internally motivating esteem needs are those such as self-esteem, accomplishment, and
self respect. External esteem needs are those such as reputation and recognition.
Some examples of esteem needs are:

 Recognition (external motivator)

 Attention (external motivator)
 Social Status (external motivator)
 Accomplishment (internal motivator)
 Self-respect (internal motivator)

Maslow later improved his model to add a layer in between self-actualization and esteem
needs: the need for aesthetics and knowledge.

Social Needs__________________________________________________
Once a person has met the lower level physiological and safety needs, higher level
motivators awaken. The first level of higher level needs is social needs. Social needs are
those related to interaction with others and may include:

 Friendship
 Belonging to a group
 Giving and receiving love
 Intimacy
 Having a supportive and communicative family

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Safety Needs__________________________________________________

Once physiological needs are met, one's attention turns to safety and security in order to
be free from the threat of physical and emotional harm. Such needs might be fulfilled by:

 Living in a safe area

 Medical insurance
 Job security
 Financial reserves
 Personal security

According to the Maslow hierarchy, if a person feels threatened, needs further up the
pyramid will not receive attention until that need has been resolved.

Physiological Needs___________________________________________

Physiological needs are those required to sustain life, such as:

 Air
 Water
 Food
 Sleep
 Breathing
 Homeostasis
 Sexual intercourse
 Clothing
 Shelter

According to this theory, if these fundamental needs are not satisfied then one will surely
be motivated to satisfy them. Higher needs such as social needs and esteem are not
recognized until one satisfies the needs basic to existence.

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Business Management Implications_______________________________
If Maslow's theory is true, there are some very important leadership implications
to enhance workplace motivation. There are staff motivation opportunities by motivating
each employee through their style of management, compensation plans, role definition,
and company activities.

 Physiological Motivation: Provide ample breaks for lunch and recuperation and
pay salaries that allow workers to buy life's essentials.
 Safety Needs: Provide a working environment which is safe, relative job security, and
freedom from threats.
 Social Needs: Generate a feeling of acceptance, belonging, and community by
reinforcing team dynamics.
 Esteem Motivators: Recognize achievements, assign important projects, and provide
status to make employees feel valued and appreciated.
 Self-Actualization: Offer challenging and meaningful work assignments which enable
innovation, creativity, and progress according to long-term goals.

Remember, everyone is not motivated by same needs. At various points in their lives and
careers, various employees will be motivated by completely different needs. It
is imperative that you recognize each employee's needs currently being pursued. In order
to motivate their employees, leadership must be understand the current level of needs at
which the employee finds themselves, and leverage needs for workplace motivation.

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Herzberg's Motivation-Hygiene Theory (Two Factor Theory)_________

Two-factor theory (also known as Herzberg's motivation-hygiene theory) was

developed by Frederick Herzberg, a psychologist who found that job satisfaction and job
dissatisfaction acted independently of each other. Two Factor Theory states that there are
certain factors in the workplace that cause job satisfaction, while a separate set of factors
cause dissatisfaction.

To better understand employee attitudes and motivation, Frederick Herzberg performed

studies to determine which factors in an employee's work environment caused
satisfaction or dissatisfaction. He published his findings in the 1959 book The
Motivation to Work.

The studies included interviews in which employees where asked what pleased and
displeased them about their work. Herzberg found that the factors causing job satisfaction
(and presumably motivation) were different from those causing job dissatisfaction. He
developed the motivation-hygiene theory to explain these results. He called the
satisfiers motivators and the dissatisfiers hygiene factors, using the term "hygiene" in
the sense that they are considered maintenance factors that are necessary to avoid
dissatisfaction but that by themselves do not provide satisfaction.

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The two Factors in the Theory___________________________________

 Hygiene factors are needed to ensure that an employee does not become dissatisfied.
They do not cause higher levels of motivation, but without them there is
dissatisfaction.
 Motivation factors are needed in order to motivate an employee into higher
performance. These factors result from internal generators in employees.

The following table presents the top six factors causing dissatisfaction and the top six
factors causing satisfaction, listed in the order of higher to lower importance.

Factors Affecting Job Attitudes

Leading to Dissatisfaction Leading to Satisfaction
 Company policy  Achievement
 Supervision  Recognition
 Relationship w/Boss  Work itself
 Work conditions  Responsibility
 Salary  Advancement
 Relationship w/Peers  Growth

Combining the hygiene and motivation factors results in four scenario's

1. High Hygiene + High Motivation: The ideal situation where employees are highly
motivated and have few complaints.
2. High Hygiene + Low Motivation: Employees have few complaints but are not highly
motivated. The job is perceived as a paycheck.
3. Low Hygiene + High Motivation: Employees are motivated but have a lot of
complaints. A situation where the job is exciting and challenging. However the
salaries and work conditions are not OK.

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4. Low Hygiene + Low Motivation: The worst situation. Employees are not motivated
and have lots of complaints.

Herzberg suggests that often work can be arranged and should be arranged in the
following ways:

 Job enlargement
 Job rotation, and/or
 Job enrichment.

Herzberg reasoned that because the factors causing satisfaction are different from those
causing dissatisfaction, the two feelings cannot simply be treated as opposites of one
another. The opposite of satisfaction is not dissatisfaction, but rather, no satisfaction.
Similarly, the opposite of dissatisfaction is no dissatisfaction.

The theory was based around interviews with 203 American accountants & engineers in
Pittsburgh, chosen because of their professions' growing importance in the business
world. The subjects were asked to relate times when they felt exceptionally good or bad
about their present job or any previous job, and to provide reasons, and a description of
the sequence of events giving rise to that positive or negative feeling.

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Here is the description of this interview analysis:

Briefly, we asked our respondents to describe periods in their lives when they were
exceedingly happy and unhappy with their jobs. Each respondent gave as many
"sequences of events" as he could which met certain criteria including a marked change
in feeling, a beginning and an end, and contained some substantive description other than
feelings and interpretations…

The proposed hypothesis appears verified. The factors on the right that led to satisfaction
(achievement, intrinsic interest in the work, responsibility, and advancement) are mostly
unipolar; that is, they contribute very little to job dissatisfaction. Conversely, the dis-
satisfiers (company policy and administrative practices, supervision, interpersonal
relationships, working conditions, and salary) contribute very little to job satisfaction.

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Implications for Management____________________________________

If the motivation-hygiene theory holds, management not only must provide hygiene
factors to avoid employee dissatisfaction, but also must provide factors intrinsic to the
work itself in order for employees to be satisfied with their jobs. Herzberg argued that job
enrichment is required for intrinsic motivation, and that it is a continuous management
process. According to Herzberg:

 The job should have sufficient challenge to utilize the full ability of the employee.
 Employees who demonstrate increasing levels of ability should be given increasing
levels of responsibility.
 If a job cannot be designed to use an employee's full abilities, then the firm should
consider automating the task or replacing the employee with one who has a lower
level of skill. If a person cannot be fully utilized, then there will be a motivation
problem.

Critics of Herzberg's theory argue that the two-factor result is observed because it is
natural for people to take credit for satisfaction and to blame dissatisfaction on external
factors. Furthermore, job satisfaction does not necessarily imply a high level of
motivation or productivity.

Herzberg's theory has been broadly read and despite its weaknesses its enduring value is
that it recognizes that true motivation comes from within a person and not from KITA
factors.

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ERG Theory__________________________________________________
The ERG Theory of Clayton P. Alderfer is a model that appeared in 1969 in a
Psychological Review article entitled "An Empirical Test of a New Theory of Human
Need". In a reaction to the famous Hierarchy of Needs by Maslow, Alderfer distinguishes
three categories of human needs that influence worker's behavior; existence, relatedness
and growth. The ERG theory is based on the work of Maslow, so it has much in common
with it but also differs in some important aspects.

Alderfer classifies needs into three categories, also ordered hierarchically:

 Existence: Physiological and safety needs

 Relatedness: Social and external esteem needs
 Growth: Self-actualization and internal esteem needs

Differences from Maslow's Hierarchy_____________________________

In addition to the reduction in the number of levels, the ERG theory differs from
Maslow's in the following three ways:

 Unlike Maslow's hierarchy, the ERG theory allows for different levels of needs to be
pursued simultaneously.
 The ERG theory allows the order of the needs be different for different people.

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 The ERG theory acknowledges that if a higher level need remains unfulfilled, the
person may regress to lower level needs that appear easier to satisfy. This is known as
the frustration-regression principle.

Thus, while the ERG theory presents a model of progressive needs, the hierarchical
aspect is not rigid. This flexibility allows the ERG theory to account for a wider range of
observed behaviors. For example, it can explain the "starving artist" who may place
growth needs above existence ones.

Implications of ERG Theory for Management______________________

If the ERG theory holds, then unlike with Maslow's theory, managers must recognize that
an employee has multiple needs to satisfy simultaneously. Furthermore, if growth
opportunities are not provided to employees, they may regress to relatedness needs. If the
manager is able to recognize this situation, then steps can be taken to concentrate on
relatedness needs until the subordinate is able to pursue growth again.

Description of ERG Theory

Clayton Alderfer extended and simplified Maslow's hierarchy into a shorter set of three
needs: Existence, Relatedness and Growth (hence 'ERG'). Unlike Maslow, he did not see
these as being a hierarchy, but being more of a continuum.

Existence

At the lowest level is the need to stay alive and safe, now and in the foreseeable future.
When we have satisfied existence needs, we feel safe and physically comfortable. This
includes Maslow's Physiological and Safety needs.

Relatedness

At the next level, once we are safe and secure, we consider our social needs. We are now
interested in relationships with other people and what they think of us. When we are

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related, we feel a sense of identity and position within our immediate society. This
encompasses Maslow's Love/belonging and Esteem needs.

Growth

At the highest level, we seek to grow, be creative for ourselves and for our environment.
When we are successfully growing, we feel a sense of wholeness, achievement and
fulfillment. This covers Maslow's Self-actualization and Transcendence.

Using ERG Theory

Find the relative state of the other person's needs for each of existence, relatedness and
growth. Find ways of either threatening or helping to satisfy the needs.

Defending
Know how well your own needs in this model are met, and what would threaten or
improve them. Be careful when other people do things that threaten or promise to
improve them.

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Theory X and theory Y_________________________________________

Theory X and Theory Y are theories of human motivation created and developed by
Douglas McGregor at the MIT Sloan School of Management in the 1960s that have been
used in human resource management, organizational behavior, organizational
communication and organizational development. They describe two very different
attitudes toward workforce motivation. Douglas McGregor in his book, "The Human Side
of Enterprise" published in 1960 has examined theories on behavior of individuals at
work, and he has formulated two models which he calls Theory X and Theory Y.

Theory X_____________________________________________________
In this theory, which many managers practice, management assumes employees are
inherently lazy and will avoid work if they can. They inherently dislike work. Because of
this, workers need to be closely supervised and comprehensive systems of controls
developed. According to this theory, employees will show little ambition without an
enticing incentive program and will avoid responsibility whenever they can. According to
Michael J. Papa, if the organizational goals are to be met, theory X managers rely heavily
on threat and coercion to gain their employee's compliance. Beliefs of this theory lead to
mistrust, highly restrictive supervision, and a punitive atmosphere. The Theory X
manager tends to believe that everything must end in blaming someone. A Theory X
manager believes that his or her employees do not really want to work, that they would
rather avoid responsibility and that it is the manager's job to structure the work and
energize the employee.

Theory Y_____________________________________________________
In this theory, management assumes employees may be ambitious and self-motivated and
exercise self-control. It is believed that employees enjoy their mental and physical work
duties. According to Papa, to them work is as natural as play. They possess the ability for
creative problem solving, but their talents are underused in most organizations. Given the
proper conditions, theory Y managers believe that employees will learn to seek out and
accept responsibility and to exercise self-control and self-direction in accomplishing

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objectives to which they are committed. A Theory Y manager believes that, given the
right conditions, most people will want to do well at work. They believe that the
satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y
as a positive set of beliefs about workers. A close reading of The Human Side of
Enterprise reveals that McGregor simply argues for managers to be open to a more
positive view of workers and the possibilities that this creates. He thinks that Theory Y
managers are more likely than Theory X managers to develop the climate of trust with
employees that is required for human resource development.

Assumptions__________________________________________________

Theory X - With Theory X assumptions, management's role is to coerce and control

employees.

 People have an inherent dislike for work and will avoid it whenever possible.
 People must be coerced, controlled, directed, or threatened with punishment in order
to get them to achieve the organizational objectives.
 People prefer to be directed, do not want responsibility, and have little or no
ambition.
 People seek security above all else.

Theory Y - With Theory Y assumptions, management's role is to develop the potential in

employees and help them to release that potential towards common goals.

 Work is as natural as play and rest.

 People will exercise self-direction if they are committed to the objectives (they are
NOT lazy).
 Commitment to objectives is a function of the rewards associated with their
achievement.
 People learn to accept and seek responsibility.
 Creativity, ingenuity, and imagination are widely distributed among the population.
People are capable of using these abilities to solve an organizational problem.
 People have potential.

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Application___________________________________________________

Theory X- Shop Floor, Mass Manufacturing - Production Workers

Theory Y- Professional Services, Knowledge Workers - Managers and Professionals

Conducive to__________________________________________________

Theory X- Large scale efficient operations

Theory Y- Management of Professionals, Participative Complex Problem Solving

Theory Y Management Implications______________________________

If Theory Y holds, the firm can do many things to harness the motivational energy of its
employees:

 Decentralization and Delegation - If firms decentralize control and reduce the number
of levels of management, each manager will have more subordinates and
consequently will be forced to delegate some responsibility and decision making to
them.
 Job Enlargement - Broadening the scope of an employee's job adds variety and
opportunities to satisfy ego needs.
 Participative Management - Consulting employees in the decision making process
taps their creative capacity and provides them with some control over their work
environment.
 Performance Appraisals - Having the employee set objectives and participate in the
process of evaluating how well they were met.

If properly implemented, such an environment would result in a high level of motivation

as employees work to satisfy their higher level personal needs through their jobs.

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Equity Theory_________________________________________________

Definition

Concept that people derive job satisfaction and motivation by comparing their efforts
(inputs) and income (outputs) with those of the other people in the same or other firms.

The Theory Summarized

The Adams’ Equity Theory is named for John Stacey Adams, a workplace and behavioral
psychologist, who developed this job motivation theory in 1963. Much like many of the
more prevalent theories of motivation (theories by Maslow’s Hierarchy of Needs,
Herzberg’s Theory, etc.), the Adams’ Equity Theory acknowledges that subtle and
variable factors affect an employee’s assessment and perception of their relationship with
their work and their employer.

According to the theory a person (p) compares her own ratio of perceive outcomes O
(pay, benefits, working conditions to perceived inputs I (effort, ability, experience to the
ration of a comparison other (o).

Op/Ip <, >, or = Oo/Io?

If P’s ratio (Op/Ip) is smaller than the comparison other’s ratio (Oo/Io), under rewarded
inequity results. If P’s ratio is larger, over rewarded inequity results, although evidence
suggest that this type of inequity is less likely to occur and less likely to be sustained
because P may rationalize the situation by revaluating her outcomes less favorably or
inputs (self-worth) more favorably.

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 Equity Theory

• O/I < O/I (Underpay)

• 5/10 10/10

• Inequity

• O/I = O/I (Equity) Equity

• 10/10 = 10/10

• O/I > O/I (Overpay

• 10/10 5/10

• Inequity

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How to Apply the Adams' Equity Theory:_________________________

It is important to also consider the Adams’ Equity Theory factors when striving to
improve an employee's job satisfaction, motivation level, etc., and what can be done to
promote higher levels of each. To do this, consider the balance or imbalance that
currently exists between your employee's inputs and outputs, as follows:

inputs equity outputs

dependent on
comparing own ratio of
input/output with ratios
of 'referent' others

Inputs are typically:
effort, loyalty, hard work,
commitment, skill, ability,
adaptability, flexibility,
tolerance, determination,
heart and soul,
enthusiasm, trust in our
boss and superiors,
support of colleagues and
subordinates, personal
sacrifice, etc.
People need to feel that Outputs are typically all
there is a fair balance financial rewards - pay,
between inputs and salary, expenses, perks,
outputs. Crucially benefits, pension
fairness is measured by arrangements, bonus and
comparing one's own commission - plus
balance or ratio intangibles - recognition,
between inputs and reputation, praise and thanks,
outputs, with the ratio interest, responsibility,
enjoyed or endured by stimulus, travel, training,
relevant ('referent') development, sense of
others. achievement and
advancement, promotion,
etc.

While obviously many of these points can't be quantified and perfectly compared, the
theory argues that managers should seek to find a fair balance between the inputs that an
employee gives, and the outputs received.

And according to the theory, employees should be content where they perceive these to
be in balance.

Equity theory main implication for managing employee compensation is that to an

important extend, employees evaluate their pay by comparing it with what other get paid,
and their work attitudes and behaviors are influenced by such comparison.

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Implications for managers_______________________________________

1. Equity theory has several implications for business managers:

2. People measure the totals of their inputs and outcomes. This means a working mother
may accept lower monetary compensation in return for more flexible working hours.
3. Different employees ascribe personal values to inputs and outcomes. Thus, two
employees of equal experience and qualification performing the same work for the
same pay may have quite different perceptions of the fairness of the deal.
4. Employees are able to adjust for purchasing power and local market conditions. Thus
a teacher from Alberta may accept lower compensation than his colleague in Toronto
if his cost of living is different, while a teacher in a remote African village may
accept a totally different pay structure.
5. Although it may be acceptable for more senior staff to receive higher compensation,
there are limits to the balance of the scales of equity and employees can find
excessive executive pay demotivating.
6. Staff perceptions of inputs and outcomes of themselves and others may be incorrect,
and perceptions need to be managed effectively.
7. An employee who believes he is over-compensated may increase his effort. However
he may also adjust the values that he ascribes to his own personal inputs. It may be
that he or she internalizes a sense of superiority and actually decrease his efforts.

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Expectancy Theory_____________________________________________
Expectancy theory is about the mental processes regarding choice, or choosing. It
explains the processes that an individual undergoes to make choices. In organizational
behavior study, expectancy theory is a motivation theory first proposed by Victor
Vroom of the Yale School of Management.

Vroom realized that an employee's performance is based on individual factors such as

personality, skills, knowledge, experience and abilities. The expectancy theory of
motivation has become a commonly accepted theory for explaining how individuals
make decisions regarding various behavioral alternatives. Expectancy theory offers the
following propositions:

A. When deciding among behavioral options, individuals select the option with the
greatest motivation forces (MF).
B. The motivational force for a behavior, action, or task is a function of three distinct
perceptions: Expectancy, Instrumentality, and Valance. The motivational force is the
product of the three perceptions:

MF = Expectancy x Instrumentality x Valence

This formula can be used to indicate and predict things as: job satisfaction, occupational
choice, the likelihood of staying in a job, and the effort that one might expend at work.
ecause the motivational force is the product of the three perceptions, if any one of their
values is zero, the whole equation becomes zero.

Expectancy theory predicts that employees in an organization will be motivated when

they believe that:

 putting in more effort will yield better job performance

 better job performance will lead to organizational rewards, such as an increase in
salary or benefits
 these predicted organizational rewards are valued by the employee in question.

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Vroom’s model is based on three concepts:

1. Expectancy probability
2. Instrumentality probability
3. Valence

1. Expectancy probability_______________________________________

Based on the perceived effort-performance relationship. It is the expectancy that one's

effort will lead to the desired performance and is based on past experience, self-
confidence, and the perceived difficulty of the performance goal. Example: If I work
harder than everyone else in the plant will I produce more?

2. Instrumentality probability___________________________________

Based on the perceived performance-reward relationship. The instrumentality is the belief

that if one does meet performance expectations, he or she will receive a greater reward.
Example: If I produce more than anyone else in the plant, will I get a bigger raise or a
faster promotion?

3. Valence____________________________________________________
Refers to the value the individual personally places on the rewards. This is a function of
his or her needs, goals, and values. Example: Do I want a bigger raise? Is it worth the
extra effort? Do I want a promotion?

Whereas Maslow and Herzberg look at the relationship between internal needs and the
resulting effort expended to fulfill them, Vroom separates effort (which arises from
motivation), performance, and outcomes.

Expectancy theory could also be overlaid over another theory (e.g. Maslow). Maslow
could be used to describe which outcomes people are motivated by and Vroom to
describe whether they will act based upon their experience and expectations.

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Thus, this theory of motivation is not about self-interest in rewards but about the
associations people make towards expected outcomes and the contribution they feel they
can make towards those outcomes.

Other theories, in my opinion, do not allow for the same degree of individuality between
people. This model takes into account individual perceptions and thus personal histories,
allowing a richness of response not obvious in Maslow or McClelland, who assume that
people are essentially all the same.

Implication to Management_____________________________________

• Expectations are influenced by managerial actions (e.g., reward systems and

organizational support).
• Training increases employee confidence in their effort-performance linkage.
• Listen for employees’ own perceived performance-reward probabilities.

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Locke's Goal Setting Theory_____________________________________
Dr. Edwin Locke was a pioneer in the study and research of the connection between
setting goals and motivation. He formed the basic goal setting theory when he reached
the conclusion that clear goals and subsequent feedback could motivate the employees
greatly. They were enthused by the idea of collectively working towards the achievement
of goals and it went a long way to improve their performance too. He also discovered that
people were more ignited by goals that were challenging and specific as compared to
goals that were easy and vague.

Dr. Edwin Locke, in the later stages, worked with Dr. Gary Latham, who had done
independent studies to corroborate Locke's findings. In the late 20th Century, they
identified the five main characteristics that were essential to the success of goal setting.
In random order these characteristics are clarity, commitment, feedback, challenge and
task complexity.

Five Basics of the Goal Setting Theory_____________________________

1. Clarity.
2. Challenge.
3. Commitment.
4. Feedback.
5. Task complexity.

Let's look at each of these in detail.

1. Clarity_____________________________________________________

Clear goals are measurable, unambiguous, and behavioral. When a goal is clear and
specific, with a definite time set for completion, there is less misunderstanding about
what behaviors will be rewarded. You know what's expected, and you can use the
specific result as a source of motivation. When a goal is vague - or when it's expressed as
a general instruction, like "Take initiative" - it has limited motivational value.

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To improve your or your team's performance, set clear goals that use specific and
measurable standards. "Reduce job turnover by 15%" or "Respond to employee
suggestions within 48 hours" are examples of clear goals.

2. Challenge__________________________________________________

One of the most important characteristics of goals is the level of challenge. People are
often motivated by achievement, and they'll judge a goal based on the significance of the
anticipated accomplishment. When you know that what you do will be well received,
there's a natural motivation to do a good job.

Rewards typically increase for more difficult goals. If you believe you'll be well
compensated or otherwise rewarded for achieving a challenging goal, that will boost your
enthusiasm and your drive to get it done.

When setting goals, make each goal a challenge. If an assignment is easy and not viewed
as very important - and if you or your employee doesn't expect the accomplishment to be
significant - then the effort may not be impressive.

3. Commitment_______________________________________________

If the employees are to see the goals through, commitment to it is extremely important.
Employees are committed to the goal if they feel they have been active participants in its
creation. Most companies encourage participative management which believes in
involving the employees in the process of goal setting and decision making. Another
factor that makes employees more committed towards attaining the goal is its difficulty
level. If the goal is harder and more challenging, employees gain drive and inspiration
from it, and show more commitment towards achieving it.

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4. Feedback__________________________________________________

In addition to selecting the right type of goal, an effective goal program must also include
feedback. Feedback provides opportunities to clarify expectations, adjust goal difficulty,
and gain recognition. It's important to provide benchmark opportunities or targets, so
individuals can determine for themselves how they're doing.

With all your goal setting efforts, make sure that you build in time for providing formal
feedback. Certainly, informal check-ins are important, and they provide a means of
giving regular encouragement and recognition. However, taking the time to sit down and
discuss goal performance is a necessary factor in long-term performance improvement.
See our article on Delegation for more on this.

5. Task Complexity____________________________________________

Task Complexity is that last characteristic in the goal setting theory. If your goals are
extremely complex, you need to make sure that your employees aren't feeling too
overwhelmed. If the task becomes too overwhelming for them, there are chances that
your employees may feel a little bewildered or demoralized. Once that happens, the goal
may seem frustrating and they may develop resistance towards attaining it. To avoid this,
ensure that your team or employee is given a reasonable amount of time to achieve the
target. It would also be a good idea to arrange for trainings or learning sessions where
you can equip the employee with necessary skills and knowledge to tackle the task at
hand.

Practical Implication of Goal-Setting Theory_______________________

 The ability to set goals can be transferred readily to any performance-based

environment.

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