By: Dr. Tiffany Jordan

"The ability to make good decisions regarding people represents one of the last reliable sources of competitive advantage, since very few organizations are good at it." Peter Drucker

(Mathis & Jackson. incentives. State of Florida Master of Business Administration Bachelor of Science Train the Trainer . management and incentives are all related to motive or motivation. through differing angles and perspectives. Employee Needs Base. The study of employee work motivation has focused on how to motivate the employee as well as the manager. Words like: needs. International Business/Management Advanced Graduate Business Certification in Management Teacher Business & Gifted Education Certification. and. There are numerous theorists who have put forth diverse theories about motivation. The paper’s main focus is to discuss those differing views from the perspective of needs. Ph. as well as to examine models currently used.D. leadership. Motivation theories are important to supervisors attempting to be effective leaders. Goal Theory. p. values. Keywords Motivation. culture. in gaining loyalty and productivity from worker./DBA. goals.. 1991. Incentive Rewards. goals.80).Abstract Many methods of employee motivation have been developed over the years. Performance Appraisals Resume *Tiffany Jordan. Motivation has two primary approaches: content and process. culture.

autonomy. The result of a hospital is a healed patient. affects job satisfaction and affects both physical and mental health. Motivation is the set of processes that moves a person toward a goal. a job has core dimensions such as skill variety. In the Characteristic Model of Motivation. specifically employees? Motivation is the art of getting things done in a manner that meets or surpasses expected standards of performance. pg. p 328). This influences performance.INTRODUCTION I am of the realization the motivating employees is a management and leadership issue. and rewards systems of an organization. (Griffin. interests and abilities that people bring to their jobs. the employee will experience certain psychological states such as experiencing meaningfulness in the work and assume responsibility for outcomes as well as have better knowledge of the actual results of work activities. and feedback. Workers seek guidance." (Henderson. determining factor. It also provides a definition of self that corresponds to their place in society. and it is the reason that management is the critical.31-32). “Who a person is" and what a person is depend on. after all. The result of a business is a satisfied customer. and reflects the kind of work a person does. 49). there are only costs. But what is motivation? Why is it important? How can we motivate people. and the lower the absenteeism and turnover. human resources policies. HUMAN RESOURCES MANAGEMENT. Management is about human beings. Accepting a job is the crucial factor in integrating the individual into society. Inside an enterprise. The supervisor (motivator) wants to influence the factors that motivate employees to higher levels of productivity. people typically act in order to achieve a goal. as well as the structure and cultures of an organization. Because Management is the efficient and effective utilization of resources. the higher the internal motivation. 1996. Since motivation influences productivity. No organization can achieve anything without people (Drucker. procedures. the better quality the performance. This is what organization is all about. motivated behaviors are voluntary choices controlled by the individual employee.thus. The single most important thing to remember about any enterprise is that results exist only on the outside. and organizational practices. job characteristics. . values. Factors that affect work motivation include individual differences. It begins with human resource management and knowing what the employee is hired to perform. a body of persons arranged for a specific purpose. Job characteristics are the aspects of the position that determine its limitations and challenges. Its task is to make people capable of joint performance. managerial practices. supervisors need to understand what motivates employees to reach peak performance. the greater the satisfaction." In essence. task identity. Individual differences are the personal needs/wants. Organizational practices are the rules. The more frequent and satisfying these psychological states are. Thus. Supervisors must consider how these factors interact to affect employee job performance. To the extent that these are present in a job. The result of a school is a student who has learned something and puts it to work ten years later. 1999. It is not an easy task to increase employee motivation because employees respond in different ways to their jobs and their organization's practices." (Drucker. pg. and attitudes. It is defined as "an emotion or desire within a person causing a person to act. we must think of personnel as the Human Resource . to make their strengths effective and their weaknesses irrelevant. counseling and direction from management to accomplish tasks and to enhance the quality of life. 1999). often linked to policies. An Organization is.

she graduated at 17 in a summer class with poor grades. and the other employees feared him. Bizarrely enough. my transcripts now read mostly A’s and B’s. “I am a man who always enjoyed working and was motivated to do my best. with about a year left until I graduate. none were ever received.” about her expectations of my course – Management and Leadership. I realized she was a nonproductive student. He continued to say. The financial incentives were very poor and not what he was used to. My marriage has also improved. As her advisor. which affected both his satisfaction levels at work as well at home. They really brought out the best in me. It is hard to deal with because I feel partly responsible. by nurturing excuses. I had been to over 6 universities in differing states. when I see my son I feel motivated to improve my grades and circumstances. I now have a great job with great benefits and rewards.MOTIVATION: HUMAN RESOURCES ISSUE To write this article. after spending almost 12 years in human resources. Although rewards were often promised to employees who performed. My manager at work allows me a flexible schedule and if something happens to my give a realistic sense of people’s needs. . I am been attending the American University in Dubai for almost two years. My husband hates his job and often brings home his problems from the office. that it would be better if I dropped out. who wanted to look favorable in the manager’s eyes. I decided to interviewed two individuals – one at a university and the other from an organization . The interview is as follows: Interview One “My adolescence seemed to be a trying period in my life. The work atmosphere was a problem in itself. I was not shocked upon being told about this situation. She was told all her life she was a failure and was living the self-fulfilling prophecy (Drucker) Instead of graduating with classmates. By the age of 21. I watch the clock and count the hours until I am out of the work environment. Interview Two Take for example this scenario. At the age of 17 I graduated high school during the summer. one involving skipping classes and exams. My life is so much better. This is very inspiring and I feel loyal to this company. now I dread going to work. who made me believe in myself and stop settling for less. thanks to the patience of a professor and my advisor. My transcripts read mostly D’s and F’s. I was inspired to interview what I believe to be an astute student whose transcript read like “A Who’s Who of Failure. he allows me to leave and make up the time. The obvious happened! He began searching for employment elsewhere. and quit his job as soon as the opportunity presented itself. When my friend’s husband first moved to Dubai. and often failing. Presently. he was primarily concerned with the basic needs of paying the rent and surviving from month to month. I had a few jobs but I usually quit after a month. "what motivated me to shape up and assume responsibility?" There is no one answer on what motivation me. and countries. The environment was conducive to rivalry and backstabbing amongst the employees. Teachers often told me not to waste my time and my parents’ money on school. The perplexing question I now deal with is. Now I am married and have a baby. As a result. None of the employees were treated with respect and all were forced to work overtime.” His attitude was also affecting his personal life at home and with his friends. was married at 18 and had a baby. rather than with my classmates. but saw the potential for getting better grades with a little motivation and “pep talk” to release the true self. For one. Secondly. he was desperate to find a job and took the first one he found. goals and incentives. Numerous things happened at his company. The manager’s style was a dictatorship.

14 for the interview). The presence of an active need is expressed as an inner state of tension from which the individual seeks relief Griffin. Gautshi. The disadvantage is that his family and friends see less of him. my student was living a self-fulfilling prophecy. and a democratic form of management. and motivation needed to thrive in the job and environment are more likely to get up to full-speed quicker. personality and skills tests. must be treated the same as employment testing. Self-Fulfilling Prophecy The concept of self-fulfilling prophecy can be summarized as this: we form certain expectations of people and communicate those experiences. hire the people that blend with the required performance needs and values (Coker and Wolf. Consciously or not. whether high or low. People tend to respond by adjusting behaviors to match. more dependable. expectations about us tend to be self-fulfilling (Hurley. one that offers him great financial incentives. Many employers might find it interesting to know that. he thinks his coworkers feel empowered and invaluable to the company. A need is anything that is required. define as priority one. Another marvelous tool is The Personal Interests. other job offers has come along with even more money. How an employee will perform the job is only a part of the picture. or useful. while companies focused on finding employees will get picked off in the marketplace. Madon. This duo goes on to say that managers first need a clear understanding of the employees’ ability to achieve success in the job and within that culture. A want is a conscious recognition of a need. desired. 1999).Upon my last contact. Although. Using standardized tests reduces inconsistency and bias. to create a culture promoting employee loyalty. Needless to say. 1999). according to the “American Uniform Guidelines. Companies with employee loyalty will focus their resources on producing their core products or services. and a pension plan. The goals set are often exciting and challenging. attitudes consistent with the culture. Accordingly. and in short. Once formed. and Values Assessment. Everyone is involved in the decision-making and goal setting at departmental levels. We tend to be comfortable with people who meet our expectations. he declined since he has great loyalty and commitment towards his new employer. diversity. reliable. A need arises when there is a difference in self-concept (the way I see myself) and perception (the way I see the world around me). and enjoys his time at the office. which answers: "What will motivate an employee to do the job" and "can your work environment as well as the managers satisfy the stimulus and rewards needed for these motivations?" Organizations can certify a human resource or . However. including interviews and reference checks. he is greatly motivated.” all hiring procedures.53 depending on the type of test and job compared to the . She had lived up to what was expected of her – failure. good reference checks. Second. as well as very equitably rewarded. First. make better team players. and integrity. The purpose of behavior is to satisfy needs.38 to . bonuses. and uncomfortable with people who do not. 1997. stay longer. In the first interview. he loves his work. provide a much better return on your payroll and training investment. He believes the company fosters multiculturalism. 1998. Attitudes. learn and be challenged. ADDRESSING THE ISSUE OF MOTIVATION Management has two crucial decisions to get off the turnover merry-go-round. and show considerable validity for predicting job performance for many jobs (. Managers can uncover most of the information needed with a complete structured interview. including a high base salary. make fewer errors. he is currently working in a different company. we tip people off as to what our expectation are. creating a circle of self-fulfilling prophecies. et al 1997). stock ownership. Second. people with the right behavioral style.

yet most managers probably think of it as the primary motivator. and motivational questionnaires (Coker et al. employees at these lower levels will become easily dissatisfied and. money and benefits are associated with the lower order needs and it is the higher order needs – Self-esteem and Self-actualization – that are related to Herzberg’s motivators. First and foremost. values and attitudes assessment. 1999). and Herzberg Two Factor Theory. money will appear to motivate because it pays for the satisfaction of physiological and security needs. safety. And. The Human Resource Model. Maslow’s Hierarchy of Needs Abraham Maslow who developed the theory of a Hierarchy of Needs. The Three Views on Motivation Firstly. believed that our basic needs must be satisfied before we satisfy higher needs. Once we actually meet all the steps (physiological. we come to a reality that. 1994). professional to interpret assign results by benchmarking employees in: behavioral assessments. in and of itself. Maslow’s Hierarchy of Needs classifies five basic categories of needs in ascending hierarchy. is not a motivator. belongingness and love. Schultz & Schultz. unmotivated (Griffin. for most of us. the basic needs must first be met before an employee can ascend the pyramid to higher level needs. These theories include Maslow’s Hierarchy of Needs. it is fair to say that so long as employees find themselves at the lower levels of Mazlow’s Hierarchy. On the other hand. Maslow's hierarchy of needs categories is the most famous example: These ascend the pyramid as illustrated below: SelfActualization Esteem Belongingness Safety Physiological . Thus. therefore. is surprising. 1997. In Mazlow’s Hierarchy of Needs.). According to Maslow’s theory. esteem and finally self-actualizing) we would then become Self Actualizing (Burger. I took an in depth look at 3 common theories concerning the motivation of employees through needs.

The first sense is the one that appears when Maslow speaks of the peakexperience as a perception not only of reality as it really is. It is important to understand that people ascend the ladder only after the previous lower need has been met. They consist of the necessities of life. Although self. can sometimes lead them to seem absent. Their lack of deficiency. The self-actualizers have reached a level of stable satisfaction of the deficiency needs— but that does not mean that they have satisfied these needs once and for all (Maslow. richness. friendship and camaraderie. status and recognition. are concerned with maintaining stability in a civil society and having protection from the fearful unknown. Security needs. justice. with the second flowing quite directly from the first (Maslow. he or she may shift to lower level need and become preoccupied with physiological and safety needs. granting a promotion when deserved. 216-217). beauty.actualizing persons can be seen as moving in the direction of a kind of human perfection. .228—229). Similarly. though moving in the direction of perfection.actualization. In his original paper on self. encouraging education to personal growth and professional development. such as food. Businesses can meet these needs by assigning esteemed job titles to their employees. Self-actualization needs involves personal growth and self-fulfillment. envelops the needs for self-worth.clouding effects of deficiency motivation. that flow directly from the self. it provides a sound structure for analyzing needs (Griffin & Ebert. and a salary that is sufficient enough to sustain life. pp. motivated suspiciousness toward other persons can sometimes put them in situations where they are taken advantage of. which some might see as shortcomings. to live up to ones full potential. Maslow had mentioned two further characteristics of the process. doing things out of pity that they know to be wrong. In an organizational context this translates into having job security and pension funds as a safety net for the future." and the second he refers to as "values. to develop ones capabilities. and all the others. Employees need to feel that they belong and that the work environment fosters friendship. aliveness. but only fairly briefly. these needs translate into a relaxed working atmosphere. To emphasize the point. In other words. although we speak abstractly of "self-actualizers" as persons who are no longer laboring under the mind. water. The first pertained to "peak-experiences" and "B-cognition. pp. The hierarchy of needs may also differ across cultures and individuals.Physiological (Basic) needs are essential for survival. and shelter. Their tendency to find all experience full of wonder. Regardless though. Motivation and Personality. There are two other types of characteristics." These two are closely related.216—217). For example.actualization process itself. nonetheless show many of the lesser human failings. their compassionate attitude toward people in general can sometimes cause them to be too compassionate. it must not be supposed that any of them is ever entirely without flaws or shortcomings. but also of the values that are inherent within reality as it really is. he was quick to point out that self." Mangers can help employees reach these needs by prescribing them challenging assignment. the fact is that no real-life flesh-and-bones human being can be completely free of deficiency motivation at every moment. for example. and fascination. 1999. "to be all that you can be. Maslow’s theory does have its shortcoming because it lacks concrete action for within the workplace. completion. In a business context. perfection. These are what he describes as the B-values: wholeness. and creating incentives.minded or humorless or to be neglectful of the conventional social amenities. It was not until after a certain period that these were drawn out more fully and given much greater prominence.actualizing persons. For example when an employee hears that the company is downsizing. Self-Esteem needs. both for themselves and other people. Sometimes one may be at the top of the hierarchy only to fall back down to the bottom. p. Social needs involve love.

he believed that behavior is the result of multiple motivations. and/or by a desire to feel feminine or masculine. The cognitive needs appear early in life and are seen in a child's natural curiosity. and "B-cognition" refers to the kinds of perceptual and other mental processes that come to the fore once the mind. Esteem Recognition. Religion. Hobbies. the need for respect must be satisfied before they can enter into a love relationship. The letter B ("Being").clouding effects of deficiency motivation have been removed. Maslow himself recognized that while the order holds for most people. Maslow recognized that a given motive did not have to be 100% satisfied before moving to a higher need. high status. to construct a personal theory that will make sense of the events of one's world. These needs are expressed in the need to analyze or reduce things to their basic elements. Finally. supervisors. unfolding sort of motivation that occurs once the deficiency needs have become stably satisfied. by a need to win or express affection. friends. approval of family. by a sense of conquest or mastery. Maslow described another set of human needs that do not appear in the hierarchy: the cognitive needs. water. creativity. 2000. worth. violence. job security. p370-396). friends. Need Self Actualization Home Education. He estimated that for the average American. Thus "B-motivation" points to the nonstriving. Job Training. For example: for some people. Work safety. to all you can be. Green continued to point out that Maslow did not believe that any given behavior is motivated by a single need. clients. Additionally. 50% of belongingness and love needs. the need to know is more important than the need to understand. Sexual behavior. community. or the needs to know and to understand. For example. health insurance. 85% of physiological needs. subordinates. Belongingness Safety Physiological Food. However. personal growth. base salary . Love of family. 70% of safety needs. growth. Advancement. there are exceptions. on the other hand. Maslow suggested that these needs form their own smaller hierarchy. Teams. to "see what will happen if I do this. it still makes sense that how well our lower needs are met determines how much those needs influence our behavior (Green. coworkers. for example. 40% of self-esteem needs. may be motivated by the need for sexual release.” and The need to explain. The need to experiment. and 10% of self-actualization needs are satisfied. poison. clubs Freedom from war. "D-motivation" means "deficiency motivation" and "D-cognition" refers to the sorts of perceptual and other mental processes that occur under the influence of deficiency motivation. Failure to meet these needs (because parents and schools sometimes teach a child to inhibit this spontaneous curiosity) can inhibit the development and full functioning of the individual (Green). refers to the opposite of deficiency. Respect. Responsibilities. sex Work conditions.“In Toward a Psychology of Being” you will find Maslow using the letter D as an abbreviation for "deficiency." Thus.

1960. and avoid all responsibility. using well-known Theory X/Theory Y concept. or being threatened with your life. McGregor is one of the first leadership gurus to profess a faith in the leadership abilities and effectiveness of common workers. 1902). treats are necessary to motivate employees. management places stress on productivity. on the concept of "a fair day's work.'s pointless to worry about whether a given color looks good on you when you are dying of starvation. People will accept the rewards and demand continually higher ones. threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives. In Theory X and Theory Y.According to Maslow. are all assertions of the underlying assumption that people will only work under external coercion and control. Theory X Theory X mangers view their employees as lazy and disobliging and thus. and on rewards for performance. directed. to direct and control his own behavior" (McGregor. This assumption has deep roots. employees avoid work because they hate it. it reflects an underlying belief that management must counteract an inherent human tendency to avoid work. dislike threats. This goes on to say that: 1) The average human being has an inherent dislike of work and will avoid it if he can. p 114). 2) Because of this human characteristic of dislike of work. and want to satisfy their need for esteem and self-actualization. The recession of 1957-1958 ended a decade of experimentation with the "soft" managerial approach. While it has logic in terms of the objectives of enterprise. to plan. stems from his capacity to think. p273). The current wave of criticism of "human relations. needing to be controlled through punishment and rewards in order for them to be productive (Pfeiffer. Below is a broader definition of both theories. lower needs take priority. Theory Y employees crave responsibility. The punishment of Adam and Eve for eating the fruit of the Tree of Knowledge was to be banished from the Garden of Eden into a world where they had to work for a living (circa Williams. Since the beginning on time." on the evils of featherbedding (soft approach) and restriction of output. and this assumption (which never really was abandoned) is being openly espoused once more. work is as natural as rest. most people must be coerced. to be creative. They must be fulfilled before the others are activated. the trends in some companies toward re-centralization after the postwar wave of decentralization. to exercise judgment. McGregor divides the manager’s assumptions concerning employees into two different sets as illustrated below: Theory X say workers have little ambition. The dislike of work is so strong that even the promise of rewards is not generally enough to overcome it. There is some basic common sense here -. The evidence for the correctness of this assumption would seem to most managers to be incontrovertible. McGregor Theory X and Y A second theory of motivation concerning the needs of employees is the Human Resource Model. This seminal work challenges the traditional "command and control" of management. to release the creativity and self-direction of the entire organization. McGregor sums it up in this sentence: "The distinctive potential contribution of the human being… at every level of the organization. One of his concepts was asking employees to help evaluate themselves. but these alone will not produce the necessary effort. . Only the threat of punishment will do the trick." the derogatory comments about "permissiveness" and "democracy" in industry.

Under the conditions of modern industrial life. lack of ambition. The average human being does not inherently dislike work. has relatively little ambition. P. not inherent human characteristics. p. and wants security above all. the intellectual potentialities of the average human being are only partially utilized. to exercise judgment. work may be a source of satisfaction (and will be voluntarily performed) or a source of punishment (and will be avoided if possible). 3. 4. to plan.114). and emphasis on security are generally consequences of experience. Depending upon controllable conditions. McGregor (1960) sums it up in this sentence: "The distinctive potential contribution of the human being… at every level of the organization. Our political and social values demand such public expressions. Theory X managers are autocratic. External control and the threat of punishment are not the only means for bringing about effort toward organizational objectives. Nevertheless. is the satisfaction of ego and self-actualization needs. wishes to avoid responsibility. (McGregor. The average human being learns. In fact. The capacity to exercise a relatively high degree of imagination. Theory Y managers regard (Pfeiffer at al. while Theory Y managers are democratic. . 2. 1991) their employees as energetic. under proper conditions. This assumption of the "mediocrity of the masses" is rarely expressed so bluntly. Avoidance of responsibility.33-49). Man will exercise selfdirection and self-control in the service of objectives to which he is committed. hardworking. creative employees who seek out responsibility. However. The expenditure of physical and mental effort in work is as natural as play or rest. the Human Resource Model also has its shortcomings by also providing little concrete basis for action.3) ) The average human being prefers to be directed. it does help us to understand how managers’ actions are shaped by their attitudes about their employees (Siropolis. Commitment to objectives is a function of the rewards associated with their achievement. 6. 1990. It’s noticeable how Theory X centers on the two lower levels of Maslow’s Hierarchy of Needs: physiological and security. pp.33-49). stems from his capacity to think. 503). to direct and control his own behavior. which can be direct products of effort directed toward organizational objectives. and it is easy to see it reflected in policy and practice. distributed in the population. Paternalism has become a nasty word. not narrowly. ingenuity. and creativity in the solution of organizational problems is widely. However. Theory Y On the other hand. McGregor argues that Theory Y managers will succeed more at having motivated employees. but it is by no means a defunct managerial philosophy (McGregor. The most significant of such rewards for example. a great amount of lip service is given to the ideal of the worth of the average human being. 5. This theory implies that: 1. a great many managers will give private support to this assumption. to be creative. not only to accept but also to seek responsibility. (McGregor. pp.

responsibility and opportunities for personal growth. if the pay and benefits are sufficient. meaningless changes in the tasks that workers are assigned to do have not accomplished the desired objective either. by the employee to be insufficient. Motivation. Herzberg states that job satisfaction and dissatisfaction is dependent on hygiene and motivating factors. That is. The absence of such "hygiene" factors as good supervisor-employee relations and liberal fringe benefits can make a worker unhappy. (1968.Herzberg Two-Factor Theory It is useful to know that Herzberg’s two-factor theory is concerned with the motivation of employees through needs. 1999). the employee will be dissatisfied (Griffin. as jobs become " Herzberg et. The factors that lead to job satisfaction (the motivators) are: • • • • • • • • • • • • Achievement Recognition Work itself Responsibility Advancement Company policy and administration Working conditions Supervision Interpersonal relations Money Status Security The factors that may prevent dissatisfaction (the hygiene) are: . If they are felt.expensive and not successful. He criticizes management for ignoring the motivational factors and trying to motivate through things like money and benefits . the employee will be satisfied but not motivated. Therefore. derives from people having a sense of achievement. in actual fact. which has been politely translated as a “kick in the pants!” He says that KITA does not produce motivation but only movement. recognition. In this theory. but their presence will not make him want to work harder." the need for much mundane job supervision disappears. Herzberg’s theory believes that the only way to motivate the employee is to give him challenging work in which he can assume responsibility. According to Herzberg. and hitherto unsatisfying supervisory tasks can themselves be enriched by enlarging their responsibilities on a more managerial level. He is also famous for his acronym KITA. and consider money and employment benefits to be hygiene factors or dissatisfiers. says Herzberg. which can lead to satisfaction or dissatisfaction with one’s employment that arose from quite different factors and were not simply opposing reactions to the same factors. Hence. 1959) argued that KITA – the externally imposed attempt by management to "install a generator" in the employee – has been demonstrated to be a total failure.

and to be recognized as having done something worthwhile. or received a low salary. For example. They are closely related to the concept of self-actualization. On the flipside. . Maslow’s Hierarchy of Needs Herzberg’s Two SelfActualization Esteem Belonging and love Safety and Security Basic Physical needs Motivators •Achievement •Recognition •Work •Responsibility •Advancement Hygiene Factors •Interpersonal relations •Company. an opportunity to extend oneself to the fullest. and lie on a continuum from dissatisfaction to no dissatisfaction. Policy and •Administration. Herzberg’s point is that if you want to motivate people. was working in a hostile environment. This theory is also not without its faults. involving a challenge. and lie on a continuum from satisfaction to no satisfaction on the job. a manger that wishes to improve motivation among his or her employees must guarantee that the hygiene factor are met. as well as how it relates to Maslow’s theory. if an employee is not empowered and not given responsibility. Hygiene factors relates to the work environment of employees. then he or she would become more satisfied. Hygiene factors affect motivation only if they are missing or don’t live up to expectations. However if the employee were empowered. Motivators are those things that allow for psychological growth and development on the job. The following illustration depicts the Two-factor theory. • Supervision •Salary •Working Maslow’s and Herzberg’s Ideas Compared The figure displays how motivators are related to the work performance of employees.Hygiene. they can result in negative feelings about the job. to taste the pleasure of accomplishment. if applied effectively. as well as offer motivation factors. he or she might not be satisfied or may be dissatisfied. If the supervisor or the salary were to be improved. than the employee would be less dissatisfied. Hygiene is simply factors that describe the conditions of work rather than the work itself. can at best prevent dissatisfaction: if applied poorly. According to this theory. you have to be concerned with the job itself and not simply with the surroundings. an employee would become dissatisfied if they had a nasty supervisor.

1982. Another flaw is that this theory was not designed to be applicable to all work settings. On the other hand. Motivation of employees covers the scope of the Goal Theory. but their presence will not make him want to work harder." the need for much mundane job supervision disappears. p49).321). ultimately. Finally. a symbol of recognition and success. the level and fairness of compensation indirectly impacts employee motivation. Essentially. hygiene factors do have a positive influence on employees. consideration. The Goal Theory proposes that behavior is monitored by both values and goals. then the compensation for that work will significantly impact the worker's sense of self. Quite the contrary. Recognition. It is Herzberg’s theory that the only way to motivate the employee is to give him challenging work in which he can assume responsibility. and degree of closeness of the supervision. and Advancement and Growth. satisfaction and work performance are dependent on the leadership style chosen by their superior. as jobs become "enriched. According to Herzberg. job design is critical to the development of a highly motivated workforce. his or her self-image and. authoritarianism. resulting in both high satisfaction and motivation (Griffin & Ebert. On the one hand. 1971. (Henderson. " Specific goals lead to a higher performance than do generalized goals (House). Path Goal Theory and Goal Theory House's 1971 article on Path-Goal Theory argued that a subordinates' motivation. someone else may see money as a motivation factor. Responsibility. If our place in society is defined by our work (or lack of work). A goal is defined as " an overall condition one is trying to achieve. Thus. The Work Itself." . The absence of such "hygiene" factors as good supervisor-employee relations and liberal fringe benefits can make a worker unhappy. This is linked directly to what Herzberg tells us are the true motivators: Achievement. While money is not a motivator. a value "is a strongly held personal standard or conviction. Multiple dimensions of leadership behavior were examined in the theory including: leader initiating structure. it concludes that hygiene factors do not contribute to satisfaction and motivation is a flaw in itself. one may think that money is merely a hygiene factor. his or her self-esteem which brings us back to the higher order needs in Maslow's Hierarchy and motivators in Herzberg's two-factor theory.Individual views regarding what is a hygiene factor and what is a motivation factor differ.217)." A person’s values affect the goals that he or she sets up. p. hierarchical influence. Defined. and hitherto unsatisfying supervisory tasks can themselves be enriched by enlarging their responsibilities on a more managerial level. pp. meaningless changes in the tasks that workers are assigned to do. have not accomplished the desired objective either. Each of the dimensions was "analyzed in terms of path-goal variables such as valence and instrumentality" (House.

This theory argues for SMART goals. and working towards the same goal increases output. However. Hurley. When employees are united as a team. 1998. In addition. 1998. Goals are more effective when they are used to measure performance. employees will be motivated to work even harder. Goals should be linked to feedback and reward systems. Employees need feedback so that they are aware of how well they are doing in terms of attaining their work objectives. it’s important to keep in mind that goals must be SMART: Specific.Basic Goal Theory Goals that are specific Difficult but realistic Accepted by the person Values Used to evaluate performance Link to Feedback and Rewards Set by individual or group Improved Performance The basics of goal theory: Goals that meet illustrated condition have a positive impact on motivation as revealed by a wide variety of research studies An employee will perform more effectively when he knows exactly what is being asked of him. 1997). This relates to management by Objectives in which both mangers and employees are involved in the process of setting goals and assessing improvement. Positive feedback will motivate the employee and support continuation of the behavior. For goals to improve performance the employee must accept them. Feedback effects employee behavior in a constructive manner. This creates synergy. Employees will be more motivated towards achieving goal when they know their performance will be assessed in terms of how well they reach their goals. People are more motivated by challenging goals rather than simple ones. otherwise people will become discouraged. This means that the goals must be measurable. Measurable. 1997. working as a group towards individual goals is even . When rewards are given to employees for goals that are attained. Madon et al. Negative feedback will discourage the good behavior and promote bad attitudes. Realistic and Time constrained. The cooperation between the employer and the employees can lead to increased motivation and satisfaction. Performance generally increases in direct proportion to goal difficulty. This theory states that people work more effectively and productively when they have specific goals or targets to meet. Group goal setting is as important as individual goal setting. Attainable. Drucker. thus leading to lower performance (Allen.

The benefit of gain share plans is that they have proved themselves to be productive over time. employees are given the right to obtain company stock at an explicit price. reduction in costs. When a company experiences improved efficiency and its costs are reduced. at sometime in the future. Financial incentives curtail linking pay to performance. was given a stock ownership. (Rue & Byars. Employees put forth ideas about how to increase productivity. The stock shares are commonly placed into the employee’s retirement account. The first approach. Firms also use bonuses to reward employees based on the actual results. For example. meeting set target. managers decide on employees’ base salaries depending on factors such as: expertise in technology and other skills. According to this approach. the fact of the matter remains that by themselves. Today. motivation through financial incentives is based on the more traditional view that money is the driving force (the motivator). for example. knowledge of product and company. When employees believe that adding towards the prosperity of the firm will allow them to share in the proceeds. These plans give workers supplemental income based on the profitability of the entire firm or selected unit.more effective. Although The Goal Theory shed light onto the contribution of goals to performance. they will work even harder. For profit to result from improved efficiency. he or she can either cash in the stock or receive the company stock. Take for example FEDEX (Federal Express) and Southwest Airlines. The third element of gain sharing is employee collaboration. Profit Sharing A second approach of motivating employees is through the use of profit sharing plans. Financial Incentives Finally. goals are not motivational. Gain Sharing The second component of gain sharing is the participation of employees. However. interpersonal and communication skills. linking pay to performance results in employees that are. Employees then worked hard since it was in their interest for the stock’s price to rise. gain sharing. It is that the dissatisfaction that motivates them to achieve (DuBrin. It is the self-dissatisfaction that is created by the difference of what employees do and what they hope to do. p. whether it is a janitor or a president. the employee benefits since the money put into the retirement account can be claimed as tax deductible. 1989. Every employee. The quantity and quality of a product. Employees at all levels of the organization are given stock. and how they deal with customers. Another approach to profit sharing is known as gain sharing. profit sharing. the employee is more productive. and employee stock ownership or stock option plans. When the reward is greater. p. 2000. 301-302). financial rewards are given to an employee after his or her performance is improved. When the employee retires. both employees and units need to join forces with one another. sometime resorting to unethical means. Stock Ownership and Stock Options An alternative way of influencing employee motivation through financial incentives is through the use of stock ownership plans. the commission that sales people receive motivates them to sell more. and improved working conditions are some of the factors that an employee contribution to productivity may take. employee stock options are riskier than stock ownership plans. In a fortunate . motivated to work intensely. of which a board of mangers and employees employs the best ideas or recommendations. Employees’ inputs are requested and assessed. In a stock option plan. the money saved is distributes as bonuses to employees. In this approach. 370).

” It will drink only if it’s thirsty – so with people. p. Starting with goals that are clear to both leaders and contributors. either by themselves or through external stimulus. Motivation practices are difficult. p. It is believed that “Extraordinary achievers are ordinary people who have found ways to make a major impact" (Charles Garfield). For example. Those employees that do not receive rewards may feel that they are being unjustly penalized. and training. Another problem associated with financial incentives is that it may harbor harmful rivalry amongst the employees who may resort to backstabbing and jealousy. that ‘silver bullet’ . Hence.situation. effective discipline and punishment. People do what they want to do or are motivated to do. A condition for employee motivation in the workplace is effective leadership and management (Douglas McGregor. A simple “pat” on the back can go a long way. After all. managers need to be aware that intrinsic rewards such as recognition have a beneficial effect on employees (Jackson & Hisrich. 2. Manager is a coach. Management Styles The job of a manager in the workplace is to get things done through employees. There is an old saying. to have autonomy on job. Peter Drucker). financial incentives would not be as effective. The major problem with financial incentives is that it places too much emphasis on money. 1996. yet very complex. this is what the pioneers on motivational leadership and management had to say: Situational leadership is not a fad! Peter Drucker (1999) notes that in spite of all the searching for the key leadership skill .90). (DuBrin. Financial incentives may result in a controlling such method does not exist. and reward systems. But that is easier said than done. which is commitment by top management to allow employees given latitude to do job. Then." Becoming a situational leader involves: 1. if the stock price were to decline below the designated price of purchase. Frederick Herzberg. But ability depends on education. All people like to be acknowledged for their hard work. job performance = (ability) (motivation). One problem that can arise is the employees’ feelings of not being equitably rewarded for their contributions. which can be learnt. Effective leadership adapts to the differences in unique situations. facilitator to help employee reach his/her goal. treating people fairly. sometimes restructuring jobs. With out intrinsic rewards. which in effect may cause the employee to reduce his or her input for future productivity. “You can take a horse to water but you cannot force it to drink. Abraham Maslow."the one best way to manage". and is essential for a business to survive. experts believe that if performance is considered to be a function of ability and motivation. 2000. setting goals. We all know that money neither creates loyalty nor commitment. thus profiting the employee. experience. a plan for control job. Affective leaders make it a point to understand their employees and know what motivates them. in an unfortunate situation. This also requires using Management by Objectives. and "different strokes for different folks. But there is no one view on leadership and management to motivate employees. satisfying needs. as do bribes. 309-312). if a stock price increases. Motivation is a skill. they tailor rewards to suit those needs. however. the option is worthless. On the other hand. To do this. . Employees also react positively towards other external rewards such as praise or special attention from managers. the manager should be able to motivate employees. Human nature can be simple. Employees may lose fervor over their work and become preoccupied with the amount of money they will receive or resort to unscrupulous methods. Working with people to identify "competence" and "commitment" to accomplish those goals. motivation can be accomplished through positive reinforcement. Finally it is essential to realize that financial incentives are not without defects. it can be bought at discount.

all contribute towards my motivation. positive thinking. which involves family situations as much as from business challenges. This study by no means covers the entire topic of motivation. he suggests a "paradigm shift"--a change in perception and interpretation of how the world works. A leader have the capability of motivating. Bass (1985) identify two types of leaders: "transformational" and "transactional. is that it is not merely the financial gains that successfully motivate employees. Employee motivation can lead to productivity. counseling. and striving for self-actualization that further motivates me. combined with a conducive environment. In his book. In the “7 Habits of Highly Effective People. Still Bennis (1989) also makes it clear that the effective executive learns to practice both management and leadership skills. Be believes in empowerment among teams. efficiency. as well as loyalty and commitment to a company." Transformational leaders encourage subordinates to perform beyond expectations. Rather. there’s a way!" So what motivates me? The challenge of “Turning the lights on in young minds. it is a complex combination of many of the factors. Blanchard et al (1996. What will be precise as a new paradigm for the future is a major task for further investigation. He believes the key to dealing with these challenges is recognizing a principle-centered core within ourselves.” enjoying my work. however. and developing your "proactive muscles" (acting with initiative rather than reacting). Conclusion I have learnt through real-life experiences and research. This shift is how you perceive productivity. who is hopefully a leader. the challenge of proving people wrong. Theory Y shows that this management style empowers and has a significant influence on motivation of employees. Covey (1991) sees leadership as a long-term. profit. Contracting with individuals on key tasks. Principle-Centered Leadership. and financial reward. the corporate culture. a few inspiring people in my life. It is “Going against the odds”. and to an appreciation of personal and professional relationships. that there is no one factor responsible for motivating employees. Motivation is essential at all levels of life and it must have both intrinsic and extrinsic value. A person must be able to perform in both arenas. and inspiring worker to perform. which leads us to a new understanding of quality and productivity. When people are motivated. but leaves room for further investigation. Employees need to feel valued. whereas transactional leaders exchange valued things (reward for good work) to increase productivity. instead of just supervising tasks. and deciding together which leadership style will best match the situation? 4.3. He addresses a very practical presentation of situational management as one-on-one supervision methods. Where there’s a will. anything is possible. and coaching to make heroes. 1972) notes that employees struggle with everyday work because of motivational problems as well as ability problems. given the individual. guiding. respected. Covey (1989). Bass concluded that charisma by far explained most of the transformation leader’s power to influence subordinates to perform beyond expectations. What is certain. . On-the-other-hand. the ability to give. increasing my knowledge at every opportunity. says that true success originates with a balance between personal and professional effectiveness. time management. though we know money it is important. having self-esteem. "inside-out" approach to developing people and organizations. and the organizational environment that can motivate employees to performance. Following through to provide the agreed-upon leadership until there is either enough progress or the lack of progress warrants a change in styles. and a sense of worth about their jobs and from their manger.

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