Human Behavior in Organization (Chapter 4: Motivation)
Introduction
Human Needs
 Motives are expressions of personal needs and are
internal in nature
 Incentives are external stimuli. Incentives are things
deemed to be helpful in attaining personal goals
 Tensions are created by needs which are turned by
one’s culture into wants
 Wants should be properly responded to with
incentives to bring about desired responses
 Caution should be exercised to avoid our own
motivation patterns to be identified with those of
others
Types of Needs
 Basic psychological needs / Primary needs
o
Like physiological needs that are indispensable for
survival like food, water, sex, sleep, air
 Social and Psychological needs / Secondary needs
o Affected by one’s training, culture, and
environment
o Secondary needs possess the following
characteristics:
1. Strongly influenced by experience
2. Vary in type and degree of intensity among
people
3. Easily change among individuals
4. Needs exist in groups rather than isolation
5. Often hidden from one’s conscious recognition
6. Non-static feelings
7. Greatly influence behaviour
 Primary and secondary needs are inseparable
because the state of the physical body affects the
mind and the state of the mind can affect the
physical body
 Referred to by psychiatrists as Holistic Concepts –
inseparability of mind and body
The Meaning of Motivation
Motivation comes from the Latin word movere which
means to move
Motivation is the process of arousing and sustaining
goal-directed behaviour (Nelson and Quick)
Asking people to do what they don’t want to do is not
motivation but rather intimidation
Ways to Motivate Individuals (Felix M. Lao, Jr.)
1. Allow individuals to express their thoughts and ideas
freely – encourage the individuals to make decisions,
encourage them to be creative and innovative
2. Establish “S.M.A.R.T.” goals – goals must be specific,
measurable, attainable, result-oriented, time-bound
3. Treat individuals with dignity and respect – when
individuals feel that their job is important, they
become more committed
4. Create a Positive Working Climate – add some fun
and variety to the daily routine, give humor to
eradicate tension
5. Give Rewards – rewards maybe in the form of
bonuses or profit sharing and promotions
6. Continuous communication – hold regular meetings,
open communication helps avoid misunderstanding;
quality circles where individuals can discuss
problems, issues, and concerns
7. Allow individuals to be what they’re capable of doing
– knowing personnel feelings, wants, and needs
ensure win-win solution. Proactive in addressing to
the needs and wants build a long-term win-win
relationship
Maslow’s Need Approach
Abraham Maslow posited a hierarchy of human needs
based on two groupings: deficiency needs and growth
needs. Within the deficiency needs, each lower need
must be met before moving to the next higher level
8 levels of need
1. Physiological Needs: hunger, thirst, bodily comforts
2. Safety Needs: out of danger
3. Belongingness and Love Needs: affiliate with others,
be accepted
4. Esteem Needs: achieve, competent, gain approval
and recognition
5. Cognitive Needs: to know, understand, explore
6. Aesthetic Needs: symmetry, order, beauty
7. Self-actualization Needs: self-fulfillment, one’s
potential
8. Self-transcendence: to connect to something beyond
the ego
Need Priorities at Work
 Managers and professionals generally valued self-
realization highly
 Service and manual workers value job security most
highly
 Needs are highly influenced by one’s environment
 Blue-collar workers value job security, good working
conditions and high wages
 White-collar jobs are more concerned with self-
actualization needs
Employees’ Wants
 Wants are derived from needs
 Needs are causes of action but wants are the
indicators of the types of action to take in developing
incentives
 Incentive is more motivating than other forms of
rewards
 Level of aspiration is a person’s long-run wants
Perceptions
 Man evaluates what he perceives and decides to act
on the basis of his decision which may be either
rational or emotional
 Individual perceives facts in term of his problems,
interest and background
 Perceptual set – person tends to perceive what he is
previously led to believe he will perceive
Motivational and Maintenance Factors
 Maintenance factors – potent dissatisfactions;
dissatisfy when absent, does not motivate in a strong
way when present
 Motivational factors / Motivators / Satisfiers –
build strong motivation when present, rarely
strongly dissatisfies when absent
8. Personal life
9. Working conditions
10. Status
Job content – motivators and are in many instances
job-centered
Job context – maintenance factors and are mostly
environment-centered
Intrinsic Motivators – direct motivation to perform the
work because it is rewarding
Extrinsic Motivators – take place after work or away
from work, no direct satisfaction
Job Enrichment – providing improvements in terms of
motivators; intended to keep maintenance factors
steady or higher
Job Enlargement – the job is more complex and wider
in scope in order to make full use of each employee’s
intellect and skills
H. Vroom’s Motivational Model: Expectancy,
Instrumentality and Valence
 H. Vroom’s motivational model explains that a
person’s motivation toward an action at a particular
time is determined by the anticipated values of
positive and negative outcomes
 Valence is the anticipated value and is defined as the
strength of a person’s preference for one outcome
 Perceived Probability referred to as Expectancy is
defined as the strength of belief that a particular act
will be followed by a particular outcome
 Valence x Expectancy = Motivation

Herzberg Two-Factory Theory Acquired Needs: Thematic Apperception Test

(TAT)
6 motivational factors:
1. Achievements  McClleland’s Acquired Needs Theory also known as
2. Recognition Three-Need Theory or Learned Need Theory
3. Advancement proposed that an individual’s specific needs are
4. Work itself acquired over time and are shaped by one’s life
5. Possibility of growth experiences
6. Responsibility  Needs that affects us more powerfully than others
are:
10 maintenance factors:
o Achievers – excel and appreciate frequent
1. Company policy and administration
recognition, avoid low risk of no gain, avoid high
2. Technical supervision
risk of failure
3. Interpersonal relations with supervisor
o Affiliation seekers – look for harmonious
4. Interpersonal relations with peers
relationships with other people, tend to conform
5. Interpersonal relations with subordinates
and shy away, seek approval
6. Salary
7. Job security
 o Power seekers – want power to control others or 2. Valuable communication
to achieve higher goals, they seek neither 3. Improved attitudes arising from the emotional
recognition nor approval release
4. Determine the training needs of supervisors
Identifying preferences
Thematic Apperception Test (TAT) – a set of black and Objections to Morale Surveys
white pictures on cards, each showing an emotionally  Fear that employees will dig up dissatisfactions
powerful situation  It is costly
 High need for achievement – should be given  Does not give full information on why employees feel
challenging projects with reachable goals the same way they do
 High need for affiliation – need to perform best in a
cooperative environment Types of Morale Surveys
 High need for power – should provide the  Objective Surveys – present both a question and
opportunity to manage others choice of answers; includes multiple choice, true or
false questions, and questions with scaled responses
Morale Information and Its Use such as always, sometimes, never; easily
Morale refers to the attitude of either a person or administered and easy to statistically analyze
group; susceptible to change any time. Job morale can  Descriptive Surveys – present the questions and
be evaluated in terms of an employee’s general allow the respondent to answer in his own words;
emotional feelings directed or undirected manner; provides greater
leeway to present what comes to his mind
Morale and Productivity
 Projective Surveys – present abstract situations
 Morale – reflection of one’s attitude
unrelated to the job and ask the worker to analyze
 High morale manifests a predisposition to be more and comment upon them; interpret attitudes;
productive personality for mental health
o Interview Survey – mostly descriptive; interview
Relation of Morale Variables to Other Variables takes one to two hours; time-consuming and
 A positive correlation between age and general expensive
morale on job satisfaction has been found to exist
 Workers become more satisfied with their jobs as Existing Morale Indicators
they become older 1. Labor turnover
 Job satisfaction is influenced by community 2. Productivity
conditions 3. Waste and scrap
 Poor community conditions – reduce job satisfaction 4. Quality records
 Good community conditions – elevate job 5. Absenteeism and tardiness
satisfaction 6. Reports of counselling, insurance and similar
services
Obtaining Morale Information 7. Grievances
 Usual method of obtaining morale information is 8. Exit interviews
through morale opinion or attitude survey 9. Accident reports
 Attitude survey – studies which are scaled 10. Medical reports
according to some set of values 11. Suggestions
12. Training record
 Opinion survey – simply counts and classifies
responses
 Morale survey is considered as the most
comprehensive type of morale study. The benefits
gained are:
1. Gives management a picture of the general level of
morale in the company
Appraising and Rewarding Performance
 Performance appraisal – comparing an individual’s
job performance against standards
 Task of evaluating employee performance is referred
to as: performance rating, efficiency rating, merit
rating, employee evaluation, service training,
personal rating, performance received and
performance appraisal
 Factors for judging performance :
o Requirements, duties and responsibilities and the
standards of satisfactory performance “what
must be done?”
o Nature of man and the extent or quality of his
performance “what has he accomplished?”
 Performance – how much should be done or
accomplished
 Duties and responsibilities – what should be done
Objectives of Performance Appraisal
An employee performing rating system aims to:
1. Provide feedback on employee performance
2. Serve as a basis for personnel action
3. Serve as management’s guide in employee
counselling and discipline
4. For the improvement of employee relations
5. Improves supervision by making the superior better
6. Development of the supervisors
7. As a basis for changes
8. To identify r=training needs and areas of
management development
Needs to Evaluate Performance of Employees
Employees will know:
1. How they are performing
2. What is expected of them
3. How well they are meeting those expectations
4. How they can improve
5. How their superiors gauge their performance
Methods Used in Appraising Performance
Among the types of merit rating plans widely used are:
1. Rank Order Method
2. Paired Comparison Method
3. Forces Distribution System
4. Graphic Rating Scale
5. Preference Checklist Method
6. Management by Objectives (MB) or Results Oriented
Method
Rank Order Method (1)
Employees are rated and ranked from the most efficient
to the least capable on each trait or quality used in
judging the employee’s performance. This method has
the following disadvantages:
1. Becomes unwieldy f many workers are to be rated
2. Degree of types of works in one unit cannot be
compared with those in other
3. May be effectively applied for small groups of
employees performing similar undertakings
Paired Comparison Method (2)
Name is written on a card, paired with other employees,
determines who is superior in terms of trait, pairing is
repeated
Forces Distribution System (3)
A five-point job performance scale in rating employees
is employed. 98% as superior, 80% as above average,
60% as average, 18% as below average, 2% as poor.
Rated for job performance and promotability
Graphic Rating Scale (4)
Employs a chart or graph containing a list of traits to be
taken into account in rating the employees. Left-hand
side has the traits or qualities. Right-hand side is a
horizontal line divided into sections, with
corresponding descriptive statement
Checklist Method (5)
Provides a number of traits or factors with their
corresponding definitions written in the left-hand side.
Right-hand side has a scale divided into four or five
parts. A well-constructed checklist possesses the ff
advantages:
1. Criteria are specific
2. The “halo effect” in rating is avoided
3. By not indicating the weighted points
4. Basis for counselling between the superior and the
employee
5. Comparison of performance ratings between groups
is made possible
Disadvantages are:
1. Same word or description may not mean the same to
all the raters
2. The likelihood of committing the error of central
tendency
Rating Scale Method
Variation of checklist method. 2 general types sued are
continuous type and discontinuous type
Weighting
Some firms assign weight or numeral values to each
trait. Ratings such as Excellent, Good, Average, Below
Average, and Poor are given by the rater
Management by Objectives (6)
 Management by Objectives (MBO) introduced by
Peter Drucker
 The managers of the enterprise identify their
common goals, define the major area of
responsibility
 A form of participative management as managers
and rank-and-file employees set their own targets
Developing an Appraisal Program
 Appraisal program enables the employees to learn
more about the duties and responsibilities related to
his job
 The following should be taken into account in
establishing a program, for appraising employee
performance: (5/13)
o Determining the most appropriate plan to use
o Preparing job descriptions
o Qualities that characterize a good appraisal
o Structuring the rating form
o Conducting a joint appraisal
Determining the Rating Accuracy
 The instrument used to evaluate performance is of
utmost importance because the value of the
performance rating depends upon its validity and
reliability
 Ratings are valid if they accurately measure the
employee’s work performance
 Ratings are reliable if they are consistent
Common Errors in Ratings
 Variance in the Interpretation of Factors
 The Halo Effect
o Unreliability of rater
o Personal bias
o Difficulty in defining traits to be rated
o Differences in standards of different raters
Variance in the Interpretation of Factors
 Differences in the interpretation or application of
supervisors are causes of errors in rating employees’
performance
The Halo Effect
 Results from the tendency of the rater to be highly
influenced by one or two dominant traits of the
worker’s performance
 Takes place when the rater bases his appraisal on his
general impression rather than on the employee’s
actual performance
Rewarding Performance
 3 principal approaches in giving variable pay are:
o Merit – for loyalty and length of service or other
meritorious performance
o Seniority – for individual difference as opposed to
mutual interest
o Combination of the two
 Seniority systems are simpler, easier to understand
and easier to administer than the merit plans
 Seniority wages are made to require a worker for
extend service and to encourage him to remain with
his employer
 Merit wage increases bring new status to people
because they are based on a flexible item called
merit
 Merit wages are an incentive to improve
performance on the job
Using Economic Incentive Systems
 Incentive – external factor that influences an
individual
 Motive – internal pressure that drives him on
 Management can be said to give “incentive” to an
employee rather than to give “motivation”
Role of Incentive System
 Workers will welcome almost any incentive because
of the possible reward it could bring
 Incentives take the form of pay systems, stock
options, bonuses, and profit-sharing
 Profit-sharing has been gaining popularity in our
affluent society
 Profit-sharing and stock ownership plans tend to
grow because they emphasize group teamwork
 Economic incentives – carriers of social value
 Temporary incentives – have a role to play in
compensation programs
 Incentive workers earn more for their increased
Profit and Production Sharing output but their income is reduced when they produce
 Profit-sharing – sharing with employees of the less
profits remaining after all regular costs have been Restriction of Output – workers limit their
paid, including competitive wages and income taxes; production; thwarts the purpose of incentives
way of sharing the benefits of capitalism with
Some features of wage incentives – day-rate basis
employees
(management bears the cost of poor workers’ training,
 Disadvantages of profit sharing as viewed by
downtime, delays), piecework and other incentive
employees:
systems (labor costs become fixed for each unit of
1. Profit-sharing is not directly related to the
output), wage incentives (increased employee’s effort,
employee’s effort on his own job
increase creative ideas)
2. Rewards are received too long after work
performance
3. There is always the possibility of having small A Complete Pay Program
profit or none at all  Job evaluation has to do with rating the job in
 Production-sharing Plans – another useful group relation to another according to levels of
incentive; not based on profit but rather allocates to responsibility
labor a normal labor cost as a percentage of the total  Performance appraisal and wage incentives have to
product cost or total peso sales; offers limited do with rating an individual in terms of his
benefits; sharing formula is complex and difficult to individual performance
administer  Profit-sharing rewards employees as partners in the
process of profit-making
Use of Wage Incentives  These 3 systems (job evaluation, performance
appraisal and profit sharing) form the incentive
 25% of workers in manufacturing establishments
foundation of a company’s complete pay program
are under incentive plans because incentive plans
increase productivity and decrease unit labor costs
 Rate-setting, The Supervisor’s Role, Loose Rates,
Intergroup Work Relations, Restriction of Output,
Some Features of wage incentives
Rate-setting – pertains to the determination of
standard output for each job, which becomes the
operator’s basis for a “fair day’s work”
The Supervisor’s Role – supervisor is responsible for
keeping an established incentive plan working
smoothly; he balances the pressures of his superior, the
rate setters, the workers, and the union
Loose Rates – a problem that arises in incentive plans;
takes place when employees are able to reach standard
output with less than normal effort; Rate-cutting when
the rate is adjusted to require more than normal effort
on the par t of the employees to earn their regular pay
Intergroup Work Relations – disharmony may be
brought about between incentive workers and day
workers on account of factory wage incentives; Day
workers are paid according to the service they render
rather than on their amount of production or output but
they can produce less without suffering any cost in pay;