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The concept of Work Motivation The term motive usually is explained as desires, needs, emotions or impulses that make

someone do something Following this definition, motivation is the state of being incited to action. When we take into consideration work environment it becomes clear that work motivation refers to motivation within a work setting. Typically, it refers to employees’ motivation to perform, stay and commit in a company, cooperate, lead or support a leader, help customers and so forth. Obviously, this definition from International Encyclopedia of Organizational Studies (ed. Bailey & Clegg, 2008) is just an example from a mass of work motivation definitions which can be found in almost every paper about this topic. Some authors define what motivation is by explaining where it comes from. In this approach work motivation has been defined as “a psychological process resulting from the reciprocal interaction between the individual and the environment that affects a person’s choices, effort, and persistence” (Latham & Ernst, 2006). In other definitions work motivation is associated with the goal attainment. People are motivated to do something if they believe it is likely that it will bring desired result. People who are well motivated take action that they expect will achieve their clearly defined goals (Armstrong, 2007). Kanfer (1990, as cited in Bjorkl und, 2001) stressed that motivation is a phenomenon which cannot be directly observed. The only way to infer motivational processes is to analyze streams of behavior caused by environmental or inherited factors which can be observed through their effects on abilities, beliefs, knowledge and personality. There are probably as many definitions of motivation as researchers working on this topic. However, there are some features of motivation that are common for most definitions. It can be observed from the examples presented above that when authors describe motivation they mention an action or behavior that is directed and sustained as a result of motivation. In other

words motivation is usually described as an invisible force that pushes people to behave in a certain way. For the purpose of this thesis definition by Pinder (1998) will be used as it seems to define motivation both in a comprehensive and explicit way. Pinder used work of Jones (1995), Locke, Shaw, Saari, and Latham (1981), Steers and Porter (1979), and Vroom (1964) to formulate following definition (1998, p.11) : “Work motivation is a set of energetic forces that originate both within as beyond an individual’s being, to initiate work-related behavior, and to determine its form, direction, intensity, and duration”. Pinder (1998) believes that presented definition has some features that make it better than others. Firstly, it is not general as many other definitions, it presents motivation in a close relation to work and careers. His definition is intended to apply behavior such as joining or leaving company, being punctual, respecting or not supervisor’s orders, inventing better ways to performing a job and accepting relocation to another place. According to Pinder one of the key elements that are important in defining motivation is a concept of force. It not only makes the definition consistent with other authors work but also allows motivation level to be weak or strong depending on circumstances. The idea of force suggests that motivation is related to an effort. Pinder believes that effort is a consequence and indicator of motivation rather than the same phenomena. He points out that his definition does not present hedonism as a primary force in work motivation. However, it does not exclude it either. There are three more important elements of Pinder’s work motivation definition: intensity, direction and duration. Author describes the intensity dimension using two terms created by Brehm and Self (1989) – potential motivation and potential arousal. The first of those two terms is created by expectations that performance of behavior will affect final outcome. The second term is dependent on magnitude

In Pinder’s opinion intensity is not affected by the potential available and is defined as the transient size of motivational arousal in a particular point of time. Herzberg focused on a distinction between extrinsic and intrinsic motivators. however they are not perfect. the duration suggests that goal achieving might be a possible outcome of on job behavior. Although. Armstrong presents modern. It defines motivation as a result of peoples unsatisfied needs. Taylor’s theory of motivation to work is related to rewards and penalties which are directly connected to performance. Motivation Theories The subject of motivation has been present in the literature from the early beginning of 20th Century. many theories have been developed and a plenty of research has been conducted.of potential motivation and occurs only to the extent that particular behavior is difficult. Many researchers as a starting point for their work in the field of motivation used the most known theories and models of motivation. Finally. According to him. Analysis showed that they are characterized by some significant weaknesses. Maslow’s concept of hierarchy of needs is less instrumental approach. Those “old” theories are definitely important. Armstrong (2007) in his book about employee reward management summarized those theories in a clear and useful way. process theories which approach motivation from different perspective. The direction can be understood by considering towards which goals the energy of motivation is directed. As an example. Vroom’s expectancy theory explains that motivation exists only . factors that motivates people to perform well at work are still a controversial topic. As the last but also very important feature of the definition Pinder mentions the fact that motivation is presented as a hypothetical construct which cannot be measured or seen directly but is treated as an existing psychological process.

a hope for a reward is a powerful incentive to motivate employees. As one can observe from the short overview presented above there are many different theoretical approaches to the topic of motivation. Therefore. Incentives provide a spur or zeal in the employees for better performance. while point of view of other authors is much more focused on cognitive processes that influence peoples’ behavior. Therefore. job promotion. . Finally. Exactly the same can be said about motivational theories. there are some other stimuli which can drive a person to better. Equity theory says that people are more motivated if they are treated equally. It is also called as a stimulus to greater action. job security. Each of existing definitions has some strengths and weaknesses. This will include job satisfaction. incentives really can sometimes work to accomplish the goals of a concern. Motivation for a group of authors is strictly related to human needs. In the previous part a number of motivation definitions have been presented. In the literature of the subject those differences between theories resulted in a division in two categories: content and process theories.Incentives used for motivation Incentive is an act or promise for greater action. Besides monetary incentive. It means additional remuneration or benefit to an employee in recognition of achievement or better work.when relationship between performance and outcome is clear and usable. and pride for accomplishment. Incentives are something which is given in addition to wagers. Goal theory emphasizes the role of a feedback and setting goals in relation to motivation and performance. In the next part of this paper the most important theories from each category will be presented and analyzed Motivation incentives. It is a natural thing that nobody acts without a purpose behind.

4. To get the maximum of their capabilities so that they are exploited and utilized maximally. Monetary factors: (Financial) Those incentives which satisfy the subordinates by providing the rewards in terms of rupees.The need of incentives can be many:1. Therefore. To increase productivity. 2. 6. Reasonable salaries must be paid on time. To inculcate zeal and enthusiasm towards work. To psychologically satisfy a person which leads to job satisfaction. Money is also helpful to satisfy the social needs by possessing various material items a. The motivational factors can be broadly divided into two groups: 1. To enhance commitment in work performance. 7. While fixing salaries the organization must consider such as : • Cost of living . 5. management has to offer the following two categories of incentives to motivate employees:Motivational factors There are several factors that motivate a person to work. Salaries or wages: Salaries or wages is one of the most important motivational factors. To shape the behavior or outlook of subordinate towards work. Money has been recognized as a chief source of satisfying the needs of people. 3. To drive or arouse a stimulus work.

Non monetary factors: (non financial) Besides the monetary incentives. educational allowance. d. there are certain non-financial incentives which can satisfy the ego and self. Appreciation and recognition: Employees must be appreciated for their services. 2. 2. Bonus It refers to extra payment to employee over and above salary given as an incentive. The praise should not come from immediate superior but also from higher authorities. b. etc.• Company ability to pay • Capability of company to pay etc.actualization needs of employees. Employees prefer and proud of higher designations. Incentives The organization may also provide additional incentives such as medical allowance. Such incentives are to be given to deserving employees for giving valuable suggestions. Status or job title: By providing a higher status or designations the employee must be motivated. allowance. Special individual incentives: The company may provide special individual incentives. 1. c. . hra.monetary incentives”. The employees must be given adequate rate of bonus. The incentives which cannot be measured in terms of money are under the category of “Non.

5. Working conditions: Provision for better working conditions such as air-conditioned rooms. 6. Workers participation: Inviting the employee to be a member of quality circle. motivates the employees. For instance an executive who is involved in preparing and presenting reports of performance. the subordinate knows that his superior has placed faith and trust in him.3. Delegation of authority: Delegation of authority motivates a subordinate to perform the tasks with dedication and commitment. Job security: Guarantee of job security or lack of fear dismissal. may also asked to frame plans. . machines etc. or some other form of employee participation can also motivate the work-force. equipment. Employees who are kept temporarily for a long time may be frustrated and may leave the organization. etc can also be a good way to motivate the employees. proper sanitation. 7. Job enrichment: Job enrichment involves more challenging tasks and responsibilities. proper plant layout. When authority is delegated. 4. 8. This would definitely motivate the employees. or a committee. Cordial relations: Good and healthy relations must exist throughout the organization.

etc. matured. perks and allowances. praise. penalties. recognition. Negative incentive is generally resorted to when positive incentive does not work and a psychological set back has to be given to employees. the superior needs to have superior knowledge and skills than that of his subordinates. and having a good personality. transfer. For example-promotion. Positive Incentives (positive motivation) Positive incentives are those incentives which provide a positive assurance for fulfilling the needs and wants. The purpose is to rectify mistakes in order to get effective results.demotion.9. experienced. Other factors: There are several other factors of motivating the employees: • Providing training to the employees. • Flexible working hours. For example. Negative Incentives (negative motivation) Negative incentives are those whose purpose is to correct the mistakes or defaults of employees. Good superiors: Subordinates want their superiors to be intelligent. • Proper promotions and transfers. The very presence of superiors can motivate the subordinates. It is positive by nature. 10. . In fact. • Proper welfare facilities. It is negative by nature. • Proper job placements. fines. Positive incentives generally have an optimistic attitude behind and they are generally given to satisfy the psychological requirements of employees. • Poper performance feed back.

rest periods. These motivations include higher pay. These motivations provide a satisfaction during the performance of the work itself.Furthermore. (II) Motivation Theories Theories Content theories Process theories Maslow need theory Vroom’s theory Herzberg’s theory Adam’s equity theory ERG theory Porter’s theory Achievement motivation . power. responsibility. status. retirement benefits. which are primarily financial in nature. whether they really motivate the employees or simply move them to work or perform. Some of the intrinsic motivations are praise. holidays. Intrinsic motivation – Intrinsic motivation is available at the time of performance of work. recognition. Extrinsic motivation – This motivation is induced by external factors. participation etc b. These incentives and rewards have been subjected of debate. literature distinguishes 2 types of motivation: a. health insurance etc. esteem.

Most content theories share three assumptions that limit their usefulness to managers. The theories assume that (i) all employees are alike (ii) all situations are alike (iii) there is one best way to motivate all employees. Motivation cause goal. Self actualization needs Self-esteem needs Social needs Security needs Physiological needs . It is through motivation that needs can be handled and tackled purposely. a manager must understand the “hierarchy of needs”. The needs of individual serves as a driving force in human behaviour. (i) Maslow’s Need Hierarchy Theory Human behavior is goal-directed.Content and Process theories Content theories emphasis the importance of inner needs in motivation. Maslow has proposed “The Need Hierarchy Model”. Process theories view motivation as an individual’s decision to act as to put forth some given level of effort.directed behaviour. This can be understood by understanding the hierarchy of needs by manager. Therefore.

The theory may not have universal applicability. These needs relate to the survival and maintenance of human life. in all places and in all circumstances. water.The needs have been classified into the following in order: 1. Self-actualization needsThese are the needs of the highest order and these needs are found in those people whose previous four needs are satisfied. etc. recognition and respect from others. 2. Criticism 1. meditation etc. Safety needsThese needs are also important for human beings. 3.love. 4. shelter. Man is a social animal. Physiological needsThese are the basic needs of an individual which includes food. conversation. air. 4. etc. Maslow’s hierarchy of needs may not apply at all times. 5. Social needsThese needs emerge from society. belongingness. A single need cannot motivate any individual. etc. These needs become important. affection. . For example. friendship. 5. This will include need for social service. protection against danger. clothing. People differ in their expectation significantly. safety of property. Esteem needsThese needs relate to desire for self-respect. The same need may not lead to the same response in all individuals. Some people do not require social needs because they might have lost love during their childhood. Everybody wants job security. 2. 3.

b. might increase the desire for more money or better working conditions. ERG theory counters by noting that when a higher.order need level is frustrated the individual’s desire to increase a lower. an individual then seeks to increase the satisfaction of a lower-order need. Relatedness. Alderfer also deals with frustration-regression. . and self-actualization Alderfer's ERG theory differs from Maslow’s Need Hierarchy insofar as ERG theory demonstrates that a. and Growth. if a higher-order need is frustrated. • Relatedness refers to the desire we have for maintaining interpersonal Relationships. • Existence refers to our concern with basic material existence requirements. the intrinsic component of Maslow's esteem need.Existence. similar to Maslow's social/love need. Inability to satisfy a need for social interaction. That is. So frustration can lead to a regression to a lower need. what Maslow called physiological and safety needs.level need takes place. More than one need may be operative at the same time. c. ERG theory does not assume a rigid hierarchy where a lower need must be substantially satisfied before one can move on.(ii)Alderfer's Hierarchy of Motivational Needs (ERG Theory) Clayton Alderfer reworked Maslow’s Need Hierarchy to align it more closely with empirical research. for instance. According to Maslow an individual would stay at a certain need level until that need was satisfied. Alderfer's theory is called the ERG theory -. and the external component of his esteem need • Growth refers to an intrinsic desire for personal development.

In summary. 1) Satisfaction (motivational factors): Five factors stood out as strong determiners of job satisfaction:  achievement  recognition  work itself  responsibility  advancement  responsibilities for growth . was derived from a study designed to test the concept that people have two sets of needs: 1. like Maslow. that the things making people happy on the job and those making them unhappy had two separate themes.level need can result in regression to a lower. also known as the Motivation-Hygiene Theory.order needs lead to the desire to satisfy higher-order needs. their needs as animals to avoid pain 2. ERG theory argues. that satisfied lower. their needs as humans to grow psychologically Research Results: it appeared from the research.level need. but multiple needs can be operating as motivators at the same time. (iii)Two-factor Theory: (Hertzberg’s two factor theory) Herzberg's Two Factor Theory. and frustration in attempting to satisfy a higher.

such as work itself . It should be noted. Certain characteristics tend to be consistently related to job satisfaction and others to job dissatisfaction. Herzberg proposed that his . Respondents who felt good about their work tended to attribute these factors to themselves. responsibility and achievement seem to be related to job satisfaction. that recognition refers to recognition for achievement as opposed to recognition in the human relations sense. pay. Intrinsic factors.The last three factors were found to be most important for bringing about lasting changes of attitude. On the other dissatisfied respondents tended to cite extrinsic factors such as supervision. and company policies and working condition. 2) Dissatisfaction (hygiene factors): The determinants of job dissatisfaction were found to be:  company policy and administrative policies  supervision  salary  Interpersonal relations with supervisor  Interpersonal relations with subordinates  Interpersonal relations with peers  Job security  Personal life  Status  working conditions From the results Herzberg concluded that the replies people gave when they felt good about their jobs were significantly different from the replies given when they felt bad.

Critical to the understanding of the theory is the understanding that each of these factors represents a belief. probably the most popular motivational theory has been the Expectancy Theory (also known as the Valence-Instrumentality. they all have their roots in Victor Vroom's 1964 work on motivation. an employee will be motivated to try a task.findings indicated the existence of a dual continuum: the opposite of “satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction is “No Dissatisfaction. the factors leading to Job satisfaction are separate and distinct from those that lead to job dissatisfaction. Instrumentality (I). (iv) Expectancy Theory In recent years. Assuming all other things are equal.Expectancy Theory). if he or she believes that it can be done. Although there are a number of theories found with this general title. . Vroom's theory assumes that behavior results from conscious choices among alternatives whose purpose it is to maximize pleasure and minimize pain. managers who seek to eliminate factors that can create job dissatisfaction may bring about peace but not necessarily motivation. According to Herzberg. and Valence (V). The key elements to this theory are referred to as Expectancy (E). Therefore. Expectancy refers to the strength of a person's belief about whether or not a particular job performance is attainable.

The term Valence refers to the emotional orientations people hold with respect to outcomes (rewards).is certain if the first outcome -. Instrumentality may range from a probability of 1. noise.is attained) through zero (meaning there is no likely relationship between the first outcome and the second). Outcomes towards which the employee appears indifferent are said to have zero valence.0 (meaning that the attainment of the second outcome -. An outcome that the employee would rather avoid ( fatigue.A number of factors can contribute to an employee's expectancy perceptions: • the level of confidence in the skills required for the task •the amount of support that may be expected from superiors and subordinates • the quality of the materials and equipment • the availability of pertinent information Vroom defines Instrumentality as a probability belief linking one outcome (a high level of performance. Valences refer to the level of satisfaction people expect to get from the outcome. There will be no motivational forces acting on an employee if any of these three conditions hold: (1) the person does not believe that he/she can successfully perform the required task (2) the person believes that successful task performance will not be associated with positively valent outcomes .the reward -. for example) to another outcome (a reward). An outcome is positively valent if an employee would prefer having it to not having it. Commission pay schemes are designed to make employees perceive that performance is positively instrumental for the acquisition of money. layoffs) is negatively valent. stress.excellent job performance -.

. set goals. a concern about interpersonal relationships. the presence of these motives or drives in an individual indicates a predisposition to behave in certain ways. regardless of culture or gender. • Affiliation. a need to win arguments. and a need to reduce uncertainty. These studies strongly support the theory. people are driven by three motives: • Achievement. an enjoyment of teamwork. • Affiliation: The need for affiliation is characterized by a desire to belong. Therefore.000 studies relevant to achievement motivation have been conducted. a need to persuade and prevail According to McClelland.(3) the person believes that outcomes associated with successful task completion will be negatively valent (have no value for that person) MF= Expectancy x Instrumentality x Valance (v) Achievement Motivation Theory (McClelland’s Theory of Needs) According to David McClelland. Since McClelland's first experiments. • Achievement: The need for achievement is characterized by the wish to take responsibility for finding solutions to problems. • Power : The need for power is characterized by a drive to control and influence others. over 1. master complex tasks. and • Power. get feedback on level of success. from a manager's perspective.

delineated roles and responsibilities and concrete. And the power motive is activated when people are allowed to have an impact. or beat competitors. one is negative called “Theory of X” and one is positive called “T heory of Y” a) Theory of X Following are the assumptions of managers who believe in the “Theory of X” in regard to their employees. if possible avoid the same • Employees must be coerced. • Employees love work as play or rest . impress those in power.recognizing which need is dominant in any particular individual affects the way in which that person can be motivated. controlled or threatened to do the work • Employees avoid responsibilities and seek formal direction • Most employees consider security of job. Those with affiliation motives are motivated when they can accomplish things with people they know and trust. (vi) Theory of “X” and Theory of “Y”: Douglas McGregor observed two diametrically opposing viewpoints of managers about their employees. Summary: People with achievement motives are motivated by standards of excellence. • Employees dislike work. timely feedback. most important of all other factors in the job and have very little ambition b) Theory of Y: Following are the assumptions of managers who believe in the “Theory of Y” in regard to their employees.

So. Theory of X assumes Maslow’s lower level needs dominate in employees.dissonance is the term for the anxiety.perhaps associated with health and fitness . or modify the weaker of the two cognitions in order to dispel the anxiety. how to hang with friends. (vii)Cognitive Dissonance Theory A cognition is any element of knowledge . or the like. these cognitions exist in different locations in the brain. belief. they are in harmony. . Whereas Theory of Y.tension management and hanging with friends is important.an attitude. Compatible cognitions are consonant . When this threshold is reached the subconscious mind is compelled to change. etc. value. Both are trying to accomplish something important for the self . ignore. These two cognitions are in direct conflict with each other.• Employees are self directed and self controlled and committed to the organizational objectives • Employees accept and seek responsibilities • Innovative spirit is not confined to managers alone.while the behavior of smoking is part of another network having to do with tension management. When two cognitions are in direct conflict with one another a state of anxiety is produced . some employees also possess it. The belief that smoking is bad is part of one neural network . emotion.i.e. behavior. When two cognitions are in conflict anxiety (dissonance) is produced and grows until it becomes stronger than the cognition with the lesser amount of resistance to change. assumes Maslow’s higher level needs dominate in employees. A classic example of Cognitive Dissonance is holding the belief that "smoking is bad for you" while continuing the behavior of smoking.

When the subconscious mind does this for you without your conscious awareness it's called repression.to be ignored by pushing it out of awareness. In the example of smoking and other addictions repression is a distortion that allows an offending belief that cannot be deleted "smoking is bad for you" . workers compare the reward potential to the effort they must expend. Equity exists when workers perceive that rewards equal efforts. invent. repress. or modify beliefs to fit better with the behaviour. based on the work of J. Stacy Adams. The following theories each offer advice and insight on how people actually make choices to work hard or not work hard based on their individual preferences. deletion.The processes of generalization. . When you purposefully and consciously push it out of your awareness it's called suppression. and distortion are used to acquire. Motivation Theories: Behavior Process theories explain how workers select behavioral actions to meet their needs and determine their choices. and the possible work outcomes (viii) Equity Theory(Adam’s) Need Effort To achiev e goal To obtain works Degree of satisfactio n According to the equity theory. the available rewards.

are allocated. Instead of letting equity concerns get out of hand. . clarify the performance appraisals upon which these rewards are based. they look at the rewards of others as well. Rewards perceived as equitable should have positive results on job satisfaction and performance. Inequities occur when people feel that their rewards are inferior to the rewards offered to other persons sharing the same workloads. and suggest appropriate comparison points. Employees who feel they are being treated inequitably may exhibit the following behaviors:     Put less effort into their jobs Ask for better treatment and/or rewards Find ways to make their work seem better by comparison Transfer or quit their jobs The equity theory makes a good point: People behave according to their perceptions. or at least minimized. What a manager thinks is irrelevant to an employee because the real issue is the way an employee perceives his or her situation. those rewards perceived as inequitable may create job dissatisfaction and cause performance problems. such as pay increases or promotions. when rewards are allocated.But employees just don't look at their potential rewards. Every manager needs to ensure that any negative consequences from equity comparisons are avoided. these managers carefully communicate the intended values of rewards being given. Informed managers anticipate perceived negative inequities when especially visible rewards.

Porter and Edward E. But it is also affected by the person’s ability to do the job and also by individual’s perception of what the required task is. Lawler developed a more complete version of motivation depending upon expectancy theory. satisfaction of the individual depends upon the fairness of the reward. along with the equity of individual leads to satisfaction. Hence. These rewards.(ix)Porter and Lawler Performance Satisfaction model Lyman W. So performance is the responsible factor that leads to intrinsic as well as extrinsic rewards. Actual performance in a job is primarily determined by the effort spent. .

as perceived by individuals. Thorndike's law of effect.Porter and Lawler: two factors determining the effort people put into their jobs: ● Value of rewards to individuals in so far as they satisfy their needs ● Probability that rewards depend on effort. based on E. is provided as a reward for positive behavior with the intention of increasing the probability that the desired behavior will be repeated. their expectation about relationships between effort and reward ● Two additional variables: ● Ability – individual characteristics and skills Porter and Lawler model (x) Reinforcement theory The reinforcement theory. . simply looks at the relationship between behavior and its consequences. L. such as a pay raise or promotion. Positive reinforcement. This theory focuses on modifying an employee's on-the-job behavior through the appropriate use of one of the following four techniques:  Positive reinforcement rewards desirable behavior.

suspension) is an attempt to decrease the likelihood of a behavior recurring by applying negative consequences. This technique should only be used when the supervisor perceives the behavior as temporary. and not serious. .  Managers must recognize that failure to reward can also modify behavior. Classroom teachers often use this technique when they ignore students who are “acting out” to get attention. Avoidance is an attempt to show an employee what the consequences of improper behavior will be.   Managers must tell individuals what they can do to receive positive reinforcement. not typical. he or she will not experience the consequence. Managers must be sure to administer the reinforcement as closely as possible to the occurrence of the behavior. The reinforcement theory has the following implications for management:   Learning what is acceptable to the organization influences motivated behavior. Managers who are trying to motivate their employees should be sure to tell individuals what they are doing wrong and be careful not to reward all individuals at the same time.  Extinction is basically ignoring the behavior of a subordinate and not providing either positive or negative reinforcement. If an employee does not engage in improper behavior. Employees who believe that they deserve a reward and do not receive it will often become disenchanted with both their manager and company.  Punishment (threats. docking pay.

In addition to feedback. The employee must believe that he is capable of performing the task. or employees and managers can develop goals together. and managers must provide feedback on performance. familiar. and independent. the more difficult the goal. Goals. The effects of motivation on employee’s performance The authors of theories presented in previous parts of this paper tried to explain what motivate people to work. however. managers need to work with their employees in determining goal objectives in order to provide targets for motivation. Tasks involved in achieving the goal should be simple. In general. four other factors influence the goals-performance relationship:     The employee must be committed to the goal. proposed that intentions to work toward a goal are a major source of work motivation. If the goal-setting theory is followed. in essence. In addition. One advantage of employees participating in goal setting i s that they may be more likely to work toward a goal they helped develop.(xi) Goal-setting theory The goal-setting theory. tell employees what needs to be done and how much effort should be expanded. introduced in the late 1960s by Edwin Locke. The goal-setting theory is culture bound and is popular in North American cultures. The answer to this question is important because it is obviously good to . Managers can set the goals for their employees. the higher the level of performance expected. No matter who sets the goal. employees do better when they get feedback on their progress. the goals that are established should be specific rather than general in nature.

limits of company policies and physical work environment – lightening. The distinction between them was noted by Vroom (1964). He suggested that effective accomplishment of a task is not only related to motivation but also to other factor.understand what influence people behavior. Other authors mentioned several factors that might limit employees’ performance such as restricted practices of their superiors. noise or availability of materials (Hall. 2005). First assumes that high levels of motivation narrow the cognitive field. This relation is explained in two ways. The picture that emerged from his studies suggested that even if people are motivated they cannot perform well if they do not posses abilities to fulfill the task. In fact. Vroom (1964) cited an early study of Yerkes and Dodson (1908) which showed that that highest level of motivation does not lead to the highest performance. In Vroom’s point of view motivation and abilities are equally important. However. Researches show that indeed there is a relation between motivation and performance (Deci & Gagne. Managers might look for ways to motivate employees because they assume that motivation can lead to some positive outcomes for a company. extremely high levels of motivation lead to lower performance than moderate levels. temperature. . In his opinion more is to be gained by increasing ability from people who are highly motivated to accomplish the task than from those who are not motivated. Second suggests that highly motivated people are afraid of failure and that results in a lower performance. it is not the only reason for a great interest in the topic of motivation. The question that can be stated is if motivation really has influence on peoples’ performance at work. Vroom used indication from existing data and described relationship between motivation and performance as an inverted U function (Figure 4). In other words performance is not constantly increasing when level motivation is rising. especially when the task is difficult. motivation and performance cannot be treated as equivalent phenomena. However.

& Stolovitch. The last important finding of the study was a relation between a type of incentives and performance. incentives have less significant impact if they are used to get people do something than to get people do the job in a smarter way or to be more persistent at job that people already started. they have to be carefully implemented. Clark. Baron. it seems that there are more studies that search for the answer to the question what can positively influence performance of employees. The authors found that average effect of all incentive programs in all work settings lead to 22% gain in performance. 1998) Limitations of peoples’ performance are an important subject. Meta-analysis on the effects of incentives on workplace performance conducted by Condly. shows some interesting findings. as cited in Pinder. 2008). One of the greatest differences between levels of performance in authors’ analysis was between incentives offered to teams and individuals.1994. Another important feature of incentives programs is their length. Results of this study indicated that some settings are better than others to increase performance. 1994. They suggested that different people have different goals in their life. as authors claim. Companies often use incentives to motivate their employees. It means that incentives can significantly increase performance but. Frey and Osterloch (2002) in their book about successful management by motivation stressed an important fact that can explain relation between performance and motivation. However. For example. if we take into consideration incentive programs it comes up that they lead to better performance of employees if a mechanism of the program includes competition between employees to earn a bonus. Long programs increase performance more significantly that short programs. Therefore. Finally. particular motivators . Studies indicated that monetary incentives resulted in a higher performance than non-monetary incentives (Condly. Clark and Stolovitch (2008). Team directed incentives have much stronger effect on performance than individual directed incentives.

Defining those types of employees helps to predict which kind of motivators are effective in increasing individuals’ performance. Another way to increase performance is . Loyalist may understand this kind of rewarding as a signal that their work is considered by company as inadequate. Not-financial rewards also need to be matched with employees’ types. Authors divided them into two types:Income maximizers and Status seekers. Employees can be also motivated intrinsically. Income maximizers are only interested in earning money for consumption goods and they find work an unpleasant duty. They would rather prefer other benefits that directly show their status. Formalists are focused on procedures and rules existing in a company. In their case compensation does not have to be in a form of money.influence performance of individuals differently. There are three groups of them characterized by specific features. especially when it is paid out as money rather than fringe benefits. Finally. Status seekers search for social comparisons. There are employees who are motivated extrinsically. Work for them is a t ool to gain “positional goods” that shows their high status. Loyalists identify personally with the goals of company they work for. performance-related pay increases performance of Income maximizers. Formalists also may feel that company tries to change the way they work. Autonomists would lose their intrinsic motivation because their self-fulfilling work concept is put on doubt. The condition that has to be met is that employees see clear relationship between compensation and performance. As an example. while Autonomists pursuit for own ideology. Performancerelated pay can also reduce performance. Autonomist may feel that management try to absorb them into the organization and Formalists may not appreciate praise as they “just do their job”. For example praise would be desired by Status seekers but would be not motivating at all for Income maximizers who cannot buy anything for it. Status seekers can also be motivated by wages as long as they let them distinguish themselves from other people.

The characteristics of employees’ types presented here suggest that people have different expectations and desires at work. it can dramatically reduce performance of other types of employees. Those problems are broadly discussed by many researchers and professionals and seem to bring many opposite opinions. For other types of employees autonomy would not be an effective way of increasing their efforts. Income maximizers. 2002). Participation can be helpful tool that positively affect performance of Autonomist but it would be treated as waste of time by Income maximizers and Status Seekers as they are not interested in the work itself.implementing commands and sanctions. On the other hand. what the best ways to motivate employees not-financially are. Loyalist and Autonomist see commands as restrictions. Status seekers. what result in crowding-out their intrinsic motivation to work. autonomy understood as possibility to make own decision is crucial for Loyalist and would definitely increase their performance. . If they are not. The question that occurs in this point is if monetary ways of motivating people are better that non-monetary ways. Finally. This way would be effective for Formalists who understand them as a guide. Some rewards can be really rewarding for them but others are rather seen as factors that negatively influence their performance (Frey & Osterloch.