Motivation

Motivation, Morale and Incentives

Motivation Morale Incentives

•Process of stimulating
people to action to
accomplish the goals
•Individual concept –
needs, wants, desires of
individual that drive him
•internal -psychological
phenomenon
•internal feeling towards
work inspired by the
external environment,
attitude, behaviour
•depends on relation
between expectations and
reality
•group phenomenon
•stimulus for greater
action
•positive (rewards, praise,
etc.) or negative
(demotion, penalties, etc.)
•monetary (bonus, etc.) or
non-monetary
(promotion, job security,
job enrichment,
recognition, etc.)

 Higher motivation often leads to higher morale of employees, but high morale does not
essentially result in greatly motivated employees
 Incentive is a means to increase motivation

Types of Motivation

Motivation

based on
based on based on
type of
source approach
incentive

Non-
Monetary/
Extrinsic Intrinsic Positive Negative monetary/
Financial
non-financial

Extrinsic Positive Monetary

 Comes from outside forces  Based on reward  Salary,
 Desire to do something because  Improves performance  Bonus,
its externally rewarding  Achieved by co-operation of  Share in profit,
 E.g. – higher salary, bonus, employees leading to feeling of  Retirement benefits, etc.
recognition, promotion, layoff, happiness
etc.  E.g. – bonus, promotion, Non-monetary
Intrinsic recognition  Recognition,
 Comes from within a person Negative  Promotion, 1
 Desire to do something because  Based on fear or punishment  Authority and responsibility,
it is enjoyable or satisfying  Fear to act as a push  Appreciation
 E.g. – learning, sense of mechanism for employees to  Job enrichment
achievement, social contacts, do certain job  training
 Figure 1: Motivation Matrix

Importance of Motivation

For Organization For Individual

 Determinant of individual performance  Helps him achieve his personal goals
Performance = (Ability x Motivation) – external
constraints  Gives him job satisfaction
Ability = skills to do the job
Motivation = willingness to do the job  Helps in self-development of individual
External constraints = resources to do the job
 Motivated employees empower the team  Builds friendly relationships
 Efficient and profitable business
 Ease in adaptability and creativity in times of change  Gains by working with a dynamic team
 Optimistic and challenging attitude at work place

Theories of Motivation

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 Classical/Content Theories Contemporary/Process Theories
“Emphasis on what motivates "Emphasis on actual process of
individuals” Motivation"
• Maslow’s Hierarchy of Needs • Cognitive Evaluation Theory
• Herzberg’s Two-factor Theory • Goal-setting Theory
• Gregor’s Theory X & Theory Y • Self-efficacy Theory
• Alderfer’s ERG Theory • Reinforcement Theory
• McClelland’s Theory of Needs • Adam's Equity Theory
• Vroom's Expectancy Theory
• Porter Lawler Model

1. Maslow’s Hierarchy of Needs

Given By – Abraham Maslow
Basic Theory
 Hierarchy of five needs within
an individual
 Physiological and Safety Needs
are referred to as Basic Needs E.g. - Challenging job; growth
opportunity to rise up the ladder
or lower order needs; these are
satisfied externally.
 Love & belongingness and Self-
esteem needs are Psychological
needs; Self-actualization is self- E.g. – higher
fulfillment need; these are also job title
referred as higher order needs E.g. –
and satisfied internally. teamwork;
 Individuals are motivate by social events

unsatisfied needs; as one is

satisfied, the next need
emerges
E.g. – Retirement
benefits, job security,
safe and hygienic work E.g. – salary; lunch breaks
environment

2. Two-Factor Theory
Given By – Frederick Herzberg Also called – Motivator-hygiene theory
Basic Theory
 certain factors in workplace cause job satisfaction while certain cause dissatisfaction

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  Hygiene factors/maintenance factors/dissatisfiers - presence of these factors causes job
satisfaction but not necessarily motivate; absence of these factors causes job dissatisfaction
 Motivators - Absence does not necessarily dissatisfy but presence leads to higher motivation

Figure 2: Two-factor theory

3. Theory X & Theory Y

Given by – Douglas McGregor
Basic Theory –
Two types of employees:
Theory X Aspect Theory Y
(Pessimistic View) (Optimistic View)
Dislike work; find work boring; want Attitude towards Enjoy work; take interest in the work
to avoid work; are lazy work
Must be forced or coerced into Direction Self-directed towards achievement of
compliance goals
Need to be directed; avoid Responsibility Thrive on responsibility
responsibility
Motivated by money, fear, negative Motivation Motivated by desire of self-
incentives development
Little creativity Creativity Highly creative, innovative
Resist change Change Accept and mould as per changed
environment

As such the management style is chosen differently for theory X and Theory Y employees:

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4. Alderfer’s ERG Theory
Given By – Clayton Alderfer
Basic Theory
Re-categorization of Maslow’s Hierarchy of Needs into three needs:
 E – Existence needs
 R – Relatedness needs
 G- Growth needs

Existence Needs Satisfaction Relatedness Needs Progression Growth Needs

Desire for physiological Desire for satisfying Desire for self-
and material well-being interpersonal relationships development and personal
Frustration Regression growth
5. McClelland’s Theory of Needs
Given By – David McClelland
Also Called – Achievement Motivation Theory
Basic Theory
 Human behavior is affected by three needs – Need for Power, Need for Achievement, Need for
Affiliation

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 Need for Power
(nPow)
•want to control and
influence others
•want to lead
•likes to win arguments
•enjoys competition and
winning
•motivated by status and
recognition, self-esteem
Need for Achievement
(nAch)
•sets and accomplishes
challenging goals
•takes calculated risks
•likes regular feedback on
their progress
•likes to work alone
•wants to be on top and
receive credit
•fears failure
•called Gamblers
Need for Affiliation
(nAff)
•wants to belong to a
group
•effective in a team
•wants to be liked and
demand blind loyalty and
harmony
•prefers collaboration over
competition
•do not like high
risk/uncertainty

Comparison of Content Theories

Figure 3: Comparison of Content Theories

6. Cognitive Evaluation Theory/ CET Theory

Given By – Edward Deci

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 Basic Theory
Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding
tends to decrease the overall level of motivation.

Figure 4: Cognitive evaluation Theory

7. Goal Setting Theory

Given By – Edwin Locke
Basic Theory
 Goal setting is essentially linked to task performance
 Specific & challenging goals + appropriate regular feedback = better/higher performance

Refer self-efficacy
theory below

Figure 5: Goal-setting Theory

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8. Self Efficacy Theory
Given By – Albert Bandura
Basic Theory
 Self-Efficacy = one’s belief in one’s ability to succeed in specific situations or accomplish a task
 One’s sense of self-efficacy plays a role in how one approaches goals, tasks and challenges
 Complements goal-setting theory

Figure 6: Sources of Self-efficacy

9. Reinforcement Theory
Given By – BK Skinner
Basic Theory Based on law of effect i.e. individual’s behavior is a function of its consequences

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 •Positive behaviour •Positive behaviour
followed by positive followed by remoal of
consequences negative consequences
•stimulates occurence of •E.g. - manager stops
behaviour nagging
•E.g. - praising performance
Positive Negative
Reinforcement Reinforcement

Punishment Extinction
•Negative behaviour followed •Negative bahaviour
by negative consequences followed by removal of
positive consequences
•E.g. - suspending employee
for breaking rule •Absence of reinforcements
•E.g. - manager ignores
behaviour

10.Equity Theory
Given By – Stacy Adams
Basic Theory
 Individuals are motivated by perception of fairness/equity/justice at workplace
 Inequalities would be corrected by adjusting input/output

Ratio comparison Perception Response of Result

Inputs employee
Time, effort, Reduction in input
loyalty, hard- OR
work, Inequity Anger,
Individual’s Output < Other’s output Increase own Output (get pay
(under- frustration,
Individual’s Input Other’s Input hike, promotion, etc.)
Commitment, rewarded) De-motivated
OR
Output Leave job
abilities

Salary, bonus, Individual’s Output = Other’s output Continue to do job with

Equity Satisfied
perks, job Individual’s Input Other’s Input satisfaction
security,
recognition, Change referents (compare
Inequity Pride, over-
reputation, Individual’s Output > Other’s output with someone else)
(over- confidence,
sense of Individual’s Input Other’s Input OR
rewarded) guilt
achievement Re-evaluate other’s inputs

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11.Expectancy Theory
Given By – Victor Vroom
Also Called – VIE Theory
Basic Theory
Motivation = how much we want something and the likelihood of getting it
= Expectancy x Instrumentality x Valence

Motivation Expectancy Instrumentality Valence

Willingness to Effort- Performance- Rewards –personal
perform; Performance Link Rewards Link goal link
= X X
Drivers to perform Faith that better Belief that there is Degree to which
efforts will lead to a connection reward is valued by
better between activity the individual
performance and goal

12.Porter & Lawler Model of Motivation

Given by – Porter & Lawler
Also - Extension of Expectancy Theory

Figure 7: Porter & Lawler Model

How Managers Motivate – Steps to Motivation

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Identify what motivates Identify and Develop an employee Add motivation to
employees address barriers to Motivation Program employee training
employee  Explain expectations
 Good leadership motivation from employee  Get trainees
 Clear goals &  Monitor employee’s involved
expectations  Negative progress with care  Keep their
 Accurate & timely outlook  communicate attention
feedback  Lack of frequently to review focused
 Interesting work knowledge plan and employee  Give real life
 Challenges  Fear of being conduct examples
 Responsibility judged  provide
 Recognition encouragement,
 Respect praise, recognition
 Fair treatment  disciplinary action

Concept of Morale
Morale is an attitude of an employee towards job, colleagues, his superior, his organization, and the
environment.

High Morale Low Morale

•implies determination at work •Greater grievances and conflicts in organization
•keen teamwork on part of the employees •High rate of employee absenteeism and
•Organizational Commitment and a sense of turnover
belongingness in the employees mind •Dissatisfaction with the superiors and
•Immediate conflict identification and resolution employers
•Healthy and safe work environment •Poor working conditions
•Effective communication in the organization •Employees frustration
•Increase in productivity •Decrease in productivity
•Greater motivation •Lack of motivation

Morale and Productivity

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Efficiency Fear
Zone Zone

Dread
Party
Zone
Zone

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