Chapter 4: Fundamentals of Motivation

1. Introduction
Aspects of activities that affect human behavior in organizations are such as motivation,
leadership, powers, communication, group structure & process, learning, attitude, perception,
organizational changes, job stress, job design and conflict are considered to be some of the
subject of organization behavior.
Studying OB enables us to achieve organizational, groups and individual goals through
interaction of interest. Therefore it helps to know the behavior of people, to predict their action to
situations and to influence their behavior
Now a day a very challenging task is the management of diversity of workforce. Hence we need
to deal in OB to explain and predicts key dependant and independent factors.
2. What is motivation?
The term is derived from the Latin word ‘mover’, meaning ‘to move’. Motivation is one of the
key ingredients (in employee performance & productivity. People won’t get the job done without
motivation, even when they have clear work objectives, the right skills, and a supportive work
environment,
Definition of motivation
Motivation is processes and it can be simply stated as psychological process that arouse and
direct goal directed behavior. It account for an individual’s intensity, direction and persistence of
effort toward attaining a goal. this definition has 3 key elements such as intensity, direction and
persistence.
Motivated people are willing to exert a particular level of efforts (intensity) for a certain amount
of time (persistence) toward a particular goal (direction).Intensity is concerned with how hard a
person tries. Effort requires persistence. And Persistence is a measure of how long a person can
maintain his effort. Motivated individuals stay with a task long enough to achieve their goal.
Motivation refers to the forces within a person that affect his/her direction, intensity, and
persistence of voluntary behavior. It is the result of the interaction of the individual and the
situation. Individuals differ in their basic motivational drive. What motivated individuals vary
among individuals and situations.
Motivation energizes a person’s work. In essence, motivation governs behavior selection,
direction, and level of effort. Motivating employees is more challenging because workforce and
workplaces are changing.
In motivation, Needs produce motives which leads to the accomplishment of goals and needs are
caused because of deficiencies, either physical or psychological. Physical needs are the need for
food, shelter, clothing, etc, and psychological needs are feeling of security, acceptance by the
society, love and respect of friends, etc.
People have different needs that direct their behavior. Needs depend on the personal
circumstances and the outside events. Needs cause people to seek out experiences that enrich
their lives, and also trigger behavior to avoid threatening conditions and feelings of deprivations
A person who is motivated will work harder, is more effective in his work, has initiative and is
more innovative than a person who is not motivated.
Several theories have evolved to explain different facets of motivation. Motivation theorists talk
about intrinsic motivators and extrinsic motivators.
Intrinsic Motivators come from the person’s internal desire to do something, motivated by such
things as interest, challenge and personal satisfaction, where as Extrinsic motivators motivation
that comes from outside the person and include such things as pay, bonuses, and other tangible
rewards.
Are individuals primarily intrinsically or extrinsically motivated?
Douglas Me Gregory, proposed two distinct views of human beings as Theory X and Theory Y.
Theory X, which is basically negative, is the assumption that employees dislike work, are lazy,
dislike responsibility, and must be coerced to perform, where as Theory Y, which is basically
positive, is the assumption that employees like work, are creative, seek responsibility, and can
exercise self-directions. As Theory X suggests, people are almost exclusively driven by extrinsic
motivators. Where as Theory Y suggests people are more intrinsically motivated.
3. Importance of motivation
The importance’s of motivation are, High Performance Level; Low turnover and absenteeism;
Minimize Wastage; and Acceptance of change.
4. Theories of Motivation
Motivation theories are the foundations of employee motivation. They fall into two main
categories such as Content theories and Process theories.
Content theories of motivation explain the dynamics of employee needs, such as why people
have different needs at different times. They emphasizes that by understanding an employee’s
needs, we can discover what motivates that person. Where as Process theories of motivation
describe the processes through which need deficiencies are translated into behavior. They
explain why someone with a particular need engages in a particular direction, intensity, and
persistence of effort to reduce the need tension.
4.1. Content theories of motivation
Most contemporary theories recognize that motivation begins with the individual needs. Needs
are deficiencies that energize or trigger behaviors to satisfy those needs. Unfulfilled needs create
a tension that makes us want to find ways to reduce or satisfy those needs. The stronger your
needs, the more motivated you are to satisfy them. A satisfied need doesn’t motivate.
The content theory of motivation has four types of theories that dominate organizational thinking
today. They are
1. Maslow’s Needs Hierarchy Theory
2. Alderfer’s ERG Theory
3. Herzberg’s motivation Hygiene theory, and
4. Mc Celland’s theory of learned Needs.
Maslow’s Needs Hierarchy Theory
The Maslow’s Needs Hierarchy Theory is Abraham Maslow’s needs hierarchy theory. It is one
of the earliest & best known content theories that explain why people have different needs at
different times. Maslow identified five basic categories of human needs and placed them in a
hierarchy.
Self-
actualization
Esteem
Social
Security
Physiological
Fig: Mallow’s Hierarchy of need’s theory.
As to Maslow, behavior is primarily motivated by the lowest unsatisfied need at the time. As the
person satisfies the lower level need, the next higher need in the hierarchy becomes the primary
motivator.This is known as the satisfaction-progression process.
Alderfer’s ERG Theory
ERG theory Developed by Clayton Alderfer, to overcome the problems with Maslow’s needs
hierarchy theory. It Groups human needs into three broad categories arranged in a hierarchy
existence (E), relatedness (R) & growth (G). ERG theory is motivation theory in which people
progress to the next higher needs when a lower one is fulfilled, and regress to the lower need if
unable to fulfill a higher need.
Herzberg’s Motivator-Hygiene theory
Motivator-hygiene theory is developed by Frederick Herzberg. It differs from Maslow’s &
Alderfer’s needs hierarchy models because it doesn’t suggest that people change their needs over
time.
This theory suggests/ proposes that employees are primarily motivated by growth & esteem
needs, these factors are called motivators, rather than by lower level needs. Motivators include
recognition, responsibility, advancement, achievement & personal growth. Where as Hygienes or
hygiene factors, extrinsic to the work affect the extent that employees feel job dissatisfaction;
and include job security, working conditions, company policies, co-worker relations and
supervisory relations Improving Hygienes will reduce job dissatisfaction, but they will have
almost no effect on job satisfaction or employee motivation. Motivators are intrinsic where as
Hygienes are extrinsic.
McCelland’s theory of learned needs
The models described so far look at the individual’s primary or instinctive needs and their
relative importance in life. But there are secondary needs or drives, i.e. learned needs that are
learned and reinforced through childhood learning, parental styles, and social norms. Several
learned needs can motivate us at the same time.
David McCelland studied 3 secondary needs considered important sources of motivation.
1. Need for achievement
2. Need for affiliation, and
3. Need for power
Comparison of content theories of motivation
Maslaw’s Needs Alderfer’s ERG Herzberg’s McCelland’s Learned
Hierarchy Theory Motivation – Hygiene Needs Theory
Theory
Self-actualization Growth Motivators Need for achievement
 achievement
Esteem  personal growth Need for power
 responsibility
 advancement
recognition
Belongingness Relatedness Hygienes Need for affiliation
Safety Existence  supervisor relations
 co-worker relations
Physiological  Job security
 company policies
working conditions
 Fig: comparison of content theories of motivation
4.2. Process theories of motivation
Content theories explain why people have different needs at different times, where as process
theories describe the processes through which need deficiencies are translated into behavior.
There are 3 poplar process theories of motivation.
1. Expectancy theory
2. Equity theory &
3. Goal-setting theory
Expectancy theory
Expectancy theory is a process motivation theory based on the idea that work effort is directed
towards behaviors that people believe will lead to desired out comes. Through experience, we
develop expectations about whether job performance and work behaviors lead to particular
outcomes. Finally, we naturally direct our effort toward outcomes that help us fulfill our needs.
It, developed by Edward E. Lawier, is effective at explaining employee motivation, yet avoids
the unnecessary complexity of Vroom’s original model.
Expectancy theory model
Lawler’s expectancy theory model is presented as shown below. The key variable of interest in
expectancy theory is the effort (-the individual’s actual exertion of energy).
An individual’s effort level depends on three facts:
o Effort - to - performance (E P) expectancy,
o Performance - to –outcome ( P 0) expectancy, and
o outcome Valences (V)
Employee motivation is influenced by all three components of the expectancy theory model. If
any component weakens, motivation weakens.
E P P O outcomes and
Expectancy Expectancy their valences
Out come
+ or Valence
Effort Performance
Outcomes + or Valence

Out come

+ or Valence
Figure . 7.3 Expectancy theory of Motivation

The effort-to performance (E P) expectancy is the individual’s perception that his or her effort will
result in a particular level of performance. Expectancy is defined as a Probability, and ranges from 0 to 1.
The performance - to- outcome (P O) expectancy is the perceived probability that a specific behavior or
performance level will lead to specific outcomes. This probability is developed from previous learning.
Outcome Valences refers to the anticipated satisfaction or dissatisfaction that an individual feels
toward an outcome. It ranges from negative to positive. It determined by the strength of the
person’s basic needs that are associated with the outcome.
Outcomes have a positive valence when they directly or indirectly satisfy the person’s needs, and
a negative valence when they inhibit the person’s need fulfillment.

Expectancy theory in practice

One of the appealing characteristics of expectancy theory is that it provides a clear guideline for
increasing employee motivation by altering the persons E – P expectancy, P-O expectancy and
/or outcome valances.
Some of the practical implications of expectancy theory are described below.
Expectancy Objective Applications
Theory
E-P To increase the belief that  Select people with the required skill and knowledge
expectancy employees are capable of
performing the job
 Provide required training and clarify job requirement
successfully  Provide sufficient time and resources
 Assign simple or fewer tasks until employee can master team (shaping)
 Provide examples of similar employees who have successfully performed
the task
 Provide counseling and coaching to employees who lack self-confidence.
P-O To increases the belief that  Measure job performance accurately
expectancy good performance will
result in certain (valued)
 Clearly explain the outcome that will result from successful performance
outcomes  Describe how the employee’s rewards were based on past performance
 Provide examples of other employees whose good performance has
resulted in higher rewards.
Valances of To increase the expected  Distribute rewards that employees value
Outcomes value of outcomes resulting
from desired performance
 Individualize rewards
 Minimize the presence of countervalent outcomes.
Table: Increasing E-P expectances
Equity Theory
Equity Theory explains how people develop perception of fairness in the distribution and
exchanging of resources. And also explains what employees are motivated to do when they feel
inequitably treated, i.e. perceived inequity motivate employees to complain and try to change
the source of the previous inequity.
Equity theory has four main elements:-
1. Outcome/ input ratio
2. Compression other
3. Equity evaluation and
4. Consequence of inequity
Outcome /Input Ratio
Inputs include skills, efforts, experiences, amount of time worked, performance result and other
employee contributions to the organization. And Outcomes are the things employees receive
from the organization in exchanging for the inputs, such as pay, promotions, recognition, or an
office with a window.
Both inputs and outcomes are weighed by their importance to the individual. These weights vary
from one person to the next. People value outcomes differently b/se they have different needs.
Comparison with Others
Equity theory states that we compare our situation with a comparison other. The comparison
other in a particular situation may be another person, group of people, or even yourself in the
past and also it may be someone in the same job, another job, or another organization. Must of
the time we compare ourselves with others who are nearby in similar positions, and with similar
backgrounds. It is easier to get information about co-workers than people working elsewhere.
Equity evaluation
We form equity evaluation after identifying our outcome/input ratio and comparing this with the
comparison others ratio, e.g. in you are assigned to a project with another student in your class,
and both of you get the same project grade whether one of you contributes more than the other
this means that your outcomes are the same as the other students outcome’s. But in the equity
condition, both of you contribute the same effort and value to the project i.e. you and the
comparison other have the same outcome / input ratio.
Consequences of inequity
Employees are motivated to reduce or eliminate their feelings of inequity by correcting the
inequitable situation.
There are 6 possible ways (strategies) to reduce feelings of inequity such as Changing inputs;
Changing perceptions; Changing perceptions; Leaving the field; Acting on the comparison other,
and Changing the comparison other.
Goal setting
Goal setting is one of the most effective and widely practiced theories of motivation in
organizations. Goals are the immediate or ultimate objectives that employees are trying to
accomplish from their work effort. Goal setting is the process of motivating employees and
clarifying their role perception by establishing performances.
Some companies apply goal setting through a formal process known as management by-
objectives (MBO). MBO is simply defined as a participative goal setting in which
organizational objectives are cascaded down to work until and individual employees. It includes
periodic review and feedback. MBO programs generally identify organizational objectives, and
then cascade them down to work unit and individual employees.
Characteristics of effective goals
A goal setting is more complex than simply telling someone to ‘do your best’. OB scolders
identified 5 conditions that are necessary to maximize task effort and performance.
 Specific goals
 Result- oriented goals (Result-oriented goals/Processes-oriented goal)
 Goal commitment
 Participation in goal formation
 Goal feedback
Comparing motivation theories
The motivation the theories are summarized simply as known in the table below.
No Motivation Theory Type Central idea
1 Maslow’s Need Content People try to satisfy higher need when lower need is fulfilled
Hierarchy (satisfaction progression)
2 Alderfer’s ERG theory Content Satisfaction - progression (above) and people focuses on lower
need if unable to satisfy higher need (frustration progression
3 Herzberg’s motivation Content Motivators (Job content, recognition) motivate and satisfy, where
hygiene theory as hygiene factors (work relations, work environment) create
dissatisfaction but do not motivate.
4 McClelland’s learned Content Some needs are learned rather than instinctive, and more than one
needs need can motivate at the same time.
5 Expectancy theory Process Motivation is determined by perceived expectancies, outcome
value, and a rational decision making process.
6 Equity Theory Process Perceived equity is formed from outcome/input ratios with
comparison other, and people are motivated to reduce perceived
inequalities.
7 Goal setting Process Clear, relevant goals increase motivation and performance by
 stretching the intensity and persistence of effort and by clarifying
role perception.

Generally the following suggestion summarizes the essence of what we know about motivation.
1. Recognize individual difference, employees have different needs, don’t treat them alike.
2. Use goal and feedback: Employees should have specific goals as well as feedbacks how
well they are willing to pursue their goals.
3. Allow employees to participate in decisions that affect them.
4. Link reward to performance
5. Check the system for equity
CHAPTER FOUR- MOTIVATION CONCEPTS AND ITS APPLICATION