MOTIVATION

What Leads to Performance?

Performance
=
f (Ability, Motivation, Opportunity)

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 What is Motivation?
Origin : Latin ‘Movere’= ‘to move’

Dynamic force which sets a person into motion”

“An inner state that energizes, activates and directs or

channels behavior towards goals”

“Process of channeling a person’s inner drives so that he

wants to accomplish the goals of the organization”

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 Motivation
“The processes that account for an individual’s intensity,
direction and persistence of effort toward attaining a
goal.”
- Stephen P Robbins

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The Motivation Process

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 Nature
 Individuals differ in their motivation
 Motivations change
 Motivations are expressed differently
 Ind. may himself be unaware of his motivation
 An internal feeling

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 Theories of Motivation
Content Process
Theories Theories

“ How Motivation occurs”

“ What Motivates People”
how people choose behaviors
focus on internal needs
to satisfy their needs

1. Maslows Need Hierarchy

1. Victor Vroom’s
2. Herzberg’s 2 factor theory
Expectancy theory
3. Alderfer’s ERG theory
2. Porter Lawler Model
4. McClelland’s Need theory
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 Content Theories

 Focus on what arouses, energizes, or starts behavior, i.e.

individual physiological & psychological needs
 Motivation results from the individual’s attempts to satisfy
needs.
 Attempt to identify & prioritize the needs & drives that
motivate people.

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Maslow’s Hierarchy of Needs

Growth needs
Higher
Self Order
Actualization Internal
needs

Esteem Needs Symbolic

behavior
Social Needs
Striving needs Lower
Safety Needs External Order
needs
Economic
Physiological Needs behavior

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 Maslow’s Need Hierarchy Theory

 Adult motives are complex

 Needs form a Hierarchy – Lower needs to be satisfied

before higher order needs

 People seek growth. They want to move up the hierarchy

of needs

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 Maslow’s Need Hierarchy Theory

Research evidence

 Flexible hierarchy of needs

 Satisfaction of one need level may not decrease its importance &

increase importance of next need level.

 Needs vary according to:

 A person’s career stage.

 Organizational size.

 Geographic location.

 Across Cultures

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 Maslow’s Need Hierarchy Theory

Managerial implications

 Physiological needs – wages, food, breaks

 Safety needs – safe working environment, job security, insurance
 Social needs – teams, opportunity to interact
 Esteem needs – challenging tasks, recognition, participation,
status symbols
 Self actualization needs – encourage creativity, innovation

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 Herzberg’s Two – Factor theory

 Frederick Herzberg

 Dual Factor / Motivation-hygiene theory

 Portrays two different factors —

 Hygiene factors: related to job context

 Motivating factors: related to job content

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 Herzberg’s Two – Factor theory

 Research (1950) – Asked people to describe situations in

which they found their job exceptionally good or bad

 Conclusion:
Job satisfaction – Intrinsic factors
Dissatisfaction – extrinsic factors

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Herzberg’s Two- Factor Theory

Contrasting Views of Satisfaction-Dissatisfaction

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 Herzberg’s Two – Factor theory

•Intrinsic factors
•Environmental, external to job
•Build high level of motivation & job
•Prevent dissatisfaction
satisfaction
•Zero level motivation if maintained
•Stimulates superior performance 16
Herzberg’s Two – Factor theory

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 Herzberg’s Two – Factor theory

Research evidence

 Theory fails to:

 Account for individual differences.

 Link motivation & needs to both satisfaction & performance.

 Consider cultural & professional differences.

( Ex- Theory applicable to knowledge workers. For blue collar

workers maintenance factors maybe motivators)

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 Alderfer’s ERG Theory

 Developed by Clayton Alderfer.

 Collapses Maslow’s five categories into three categories:

existence needs, relatedness needs, and growth needs.

 More than one need category may be activated at the

same time.

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 ERG Theory

 Existence needs: Desire for physiological & material well-

being.

 Relatedness needs: Desire for satisfying interpersonal

relationships.

 Growth needs: Desire for continued personal growth &

development.
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 ERG Theory

 Research evidence on ERG theory:

 Supporting evidence is encouraging.

 Offers a more flexible approach to understanding

human needs.

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Comparison of Content Theories

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McClelland’s Need theory
 David McClelland – Acquired needs theory

 Individual’s specific needs are acquired over time & are

shaped by one’s life experiences

 3 fundamental needs found in varying degrees

 This mix of motivational needs, characterizes a manager's

style & behavior, both in terms of being motivated & in the

management & motivation of others

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 N Ach

McClelland’s
Need theory
N Aff N Pow

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McClelland’s Need theory
Managerial implications
People with different needs are motivated differently

 High need for Achievement – Challenging projects with

reachable goals, frequent feedback

 High need for Affiliation – Cooperative environment, group

projects

 High need for Power – Opportunity to manage others

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 Process theories

 Focus on the cognitive processes that influence

behavior, i.e. why a person behaves in a particular way.

 Deal with ‘how’ to motivate

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 Vroom’s Expectancy Theory

 Developed by Victor Vroom.

 A person’s motivation is a multiplicative function of:

 Expectancy.

 Instrumentality

 Valence.

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 Vroom’s Expectancy Theory
 Expectancy: Probability assigned by individual that work
effort will be followed by a given level of task
accomplishment

 Instrumentality: Probability assigned by the individual that

a given level of achieved task performance will lead to
various work outcomes.

 Valence: The value attached by the individual to various

work outcomes.

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Overview of Expectancy Theory

Effort Performance Reward

Valence of
Expectancy X Instrumentality X reward

MOTIVATION
Abilities Role perceptions
and traits and opportunities

JOB
PERFORMANCE
Simplified Expectancy Theory
Performance appraisal
system

Training and Human resources

development management

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 Vroom’s Expectancy Theory

 Motivational implications of expectancy theory.

 Motivation is sharply reduced when, expectancy, instrumentality

or valence approach zero.

 Motivation is high when expectancy & instrumentality are high &

valence is strongly positive.

 Managers should act to maximize expectancies,

instrumentalities, & valences that support organizational
objectives

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 Vroom’s Expectancy Theory

 Research evidence on expectancy theory.

 Theory has received substantial empirical support.
 Multiplier effect is subject to some question.
 May be useful to distinguish between extrinsic rewards
and intrinsic rewards.
 Does not specify which rewards will motivate particular
groups of workers, thereby allowing for cross-cultural
differences.

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 Other Theories

 Theory X & Theory Y

 Self Determination Theory

 Goal Setting Theory

 Self Efficacy Theory

 Adam’s Equity Theory &

Organizational Justice Theory

 Reinforcement Theory

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 Theory X & Theory Y
 Douglas McGregor

Theory X Theory Y
The assumption
The assumption
that employees
that employees like
dislike work, are
work, are creative,
lazy, dislike
seek responsibility
responsibility and
and can exercise
must be coerced to
self direction
perform
 Self Determination Theory
 Proposes that people prefer to feel they have control over
their actions
 “want to do” vs. “have to do”

 Cognitive Evaluation theory – Allocating extrinsic rewards

for behavior that had been previously intrinsically rewarding
tends to decrease the overall level of motivation if the
rewards are seen as controlling.
 Self Determination Theory
Findings
 Extrinsic reward like praise and feedback about competence
can improve intrinsic motivation
 Rewards and deadlines diminish motivation if people see
them as coercive.

Implication
 Provide both extrinsic and intrinsic incentives
 Goal Setting Approach

 ‘Goal’: The desired consequence of an action.

 Edwin Locke proposed that intentions to work toward
a goal are a major source of work motivation.

 ‘Human behavior is purposeful & goals direct & sustain

their behavior in a particular manner’
- Locke, Wood & Mento

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 Goal Setting Theory

 Goal setting theory says that specific and difficult goals,

with feedback, lead to higher performance

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 Goal Setting Approach
 Goals should have the following features:
 Specific
 Challenging
 Feedback mechanism
 Goal commitment (happens when goals are made public, self set,
and individual has internal locus of control)
 Must be owned & accepted
 Must have a specific time frame
 Measurable

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 Goal Setting Approach

 Barriers to effective goal setting

 Lack of top mgmt support

 Lack of communication

 Content of the goal

 Technical incompetence

 Cultural differences

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Goal Setting - MBO

 Management by

Objectives
 Self Efficacy
 An individual’s belief that he/she is capable of
performing a task

 According to Bandura, self efficacy can be increased by

 Enactive mastery
 Vicarious modeling
 Verbal Persuasion
 Arousal
 Self Efficacy
 Implication – Using self efficacy at the workplace

 Enactive mastery - Training

 Vicarious modeling – Role model
 Verbal Persuasion – Pygmalion effect
 Adam’s Equity Theory

 Workplace development by J.Stacy Adams.

 People gauge the fairness of their work outcomes in
relation to others.

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 Adam’s Equity Theory
Unfavorable People motivated
Perceived
social comparison to remove
inequity
of work outcomes discomfort

 Negative inequity
Individual feels he/she has received relatively less than
others in proportion to work inputs.
 Positive inequity
Individual feels he/she has received relatively more than
others in proportion to work inputs.

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 Adam’s Equity Theory

 Referent is an object of reference or individual with whom

the employee compares himself.

 Referent Comparisons Used:

 Self-Inside
 Self-Outside
 Others-Inside
 Others-Outside

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 Equity Theory Relationships
EMPLOYEE’S
ASSESSMENT
Inequity (under rewarded)

Equity

Inequity (over rewarded)

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

 Has far more explanatory & predictive validity for

under reward than for over reward.
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 Equity Theory: An Example
INEQUITABLE RELATIONSHIP
Andy is Bill is
overpaid underpaid
compared to Bill compared to Andy

Bill’s outcomes
Andy’s outcomes ($25,000/year)
($30,000/year) Bill’s inputs
Andy’s inputs (40 hours/week)
(40 hour/week)

Bill feels angry

Andy feels guilty
EQUITABLE RELATIONSHIP
Andy is equitably paid Bill is equitably paid
compared to Bill compared to Andy

Andy’s outcomes Bill’s outcomes

($30,000/year) ($30,000/year)
Andy’s inputs Bill feels Bill’s inputs
Andy feels
(40 hour/week) satisfied (40 hours/week)
satisfied
 Adam’s Equity Theory

 Equity restoration behaviors.

 Change work inputs.
 Change the outcomes received.
 Leave the situation.
 Change the comparison points.
 Change perception of self
 Psychologically distort the comparisons

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 Adam’s Equity Theory

 Equity theory implications

 Inequity perceptions are entirely from reward recipient’s

perspective, not from reward giver’s perspective.

 The equity process must be managed so as to influence

the reward recipient’s equity perceptions.

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 Adam’s Equity Theory

 Research evidence on equity theory.

 Overpayment (felt positive inequity) results in increased

quantity or quality of work.

 Underpayment (felt negative inequity) results in decreased

quantity or quality of work.

 Stronger support for underpayment results.

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 Adam’s Equity Theory

 Research evidence on equity theory — cont.

 Overpayment & underpayment results are closely tied to

individualistic cultures.

 Collectivist cultures emphasize equality rather than

equity.

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 Reinforcement

 “Anything that tends to increase the intensity of a

response & also induces the person to repeat the
behavior.”

 Behavior is a function of consequence

 Reward acted as reinforcing factor

“Reinforcement Theory”
Behavior likely to be repeated if it is reinforced
 Operant Conditioning

“Tendency to repeat behavior is influenced by reinforcement or

lack of reinforcement brought about by consequences of
behavior”

“People learn to behave in a particular manner in order to

obtain something they want or to avoid something they do
not want.”
 Motivation:
From Concepts to Application
 The Job Characteristics Model

Richard Hackman – Greg Oldham

“The model states that 5 core job characteristics

cause employees to experience critical psychological
states, which can lead to high levels of motivation,
satisfaction & performance.”

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The Job Characteristics Model

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Guidelines for Job Redesign

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 Approaches to job redesign

 Job Rotation
 Job Enlargement
 Job Enrichment
 Alternative Work Arrangements
- Flextime, Job Sharing, Telecommuting
 Social & Physical Context of work
- Social support, interaction with people

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 Motivating
Employees

 Employee Involvement – Participation

 Using Rewards to Motivate Employees
 Equity in pay
 Variable pay programs – Piece rate pay, merit based pay,
bonus, skill based pay, profit/gain sharing, ESOP’s
 Intrinsic Rewards: Employee Recognition programs