Corporate Motivation

Unit 6: Management Functions: Leading

Lesson 6.2
Theories of Motivation

Contents
Introduction 1
Learning Objectives 2
Let’s Connect 2
Discover 3
Concept of Motivation 4
Process of Motivation 4
Types of Motivation 4
Theories of Motivation 5
Maslow’s Hierarchy of Needs 6
Alderfer’s ERG Theory 8
McClelland’s Learned Needs Theory 9
Herzberg’s Two-Factors Theory 10
Adam’s Equity Theory 11
Vroom’s Expectancy Theory 12
Wrap-Up 15
Try This! 15
Challenge Yourself 17
Bibliography 18


Lesson 6.2

Introduction
What fuels you to get started and keep going? Managers must always ask this question to
their subordinates. However, the answer is not as easy as rewarding good behavior and
giving punishments since there are many factors that influence human behavior. Behavior
is important because organizational success is dependent on the collective behavior of its
members.

It is a part of the managers’ leading function to constantly look for ways on how to bring
out the enthusiasm of their subordinates so they will become self-driven in performing
their roles in the organization. Further, understanding what and how to motivate a person
will enable managers to adjust their leadership strategies to foster a conducive working
environment while being efficient and effective. Thus, we are going to dig deep into the
concept of motivation by looking into different theories that explain the motivational
process.

6.2. Theories of Motivation 1


Learning Objectives DepEd Learning Competency

At the end of this lesson, you should be able to
In this lesson, you should be able to do the identify the different theories of motivation
following: (ABM_AOM11-IIc-e-29).
● Define motivation.

● Discuss the different theories of

motivation.
● Apply the different motivation
theories in different situations in
the organization.
Let’s Connect
Rank It! 10 minutes

We are motivated by different things that are shaped by our personal experiences. Our
motivation might be money, emotional care, social acceptance, reputation, fame, power,
etc. But regardless of the kind of motivation that we have, the point is it compelled us to
act or do something with initiative.

Instructions
1. Below are some of the common motivators of students. Reflect on your personal
experiences, then rank them based on how much it motivates you to study.
2. Write your ranking in the space provided, then answer the questions that follow.
_______ Dreams and aspirations
_______ Fame
_______ Allowances
_______ Learning experience
_______ Opinion of others (parents, friends, classmates, teachers, etc.)



Guide Questions
1. Which motivates you the most to study?
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

2. Have you ever been in a situation where you want to quit on something
(assignments, projects, tests, etc.), but you suddenly remembered your motivation?
Briefly discuss.
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

3. Considering the fact that we are motivated by different reasons, what insights can
you infer that can be used in dealing with others?
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

Discover
As an essential element of directing, it is needless to emphasize further that motivation is
one of the keys to success. Consequently, it becomes a requirement that managers know
how to motivate their subordinates. Unlike planning and organizing that often operate on
tangible resources, motivation requires the application of psychological concepts and
behavioral principles to understand, predict, and influence the actions of people in the
organization.

As a member of a particular organization, what motivates

you to do a certain task?



Concept of Motivation
Motivation is defined as a psychological process that directs behavior. This means that a
person’s work performance is often influenced by his or her level of motivation. That said,
one could also say that the success level of an organization in achieving its goals is
proportional to the level of motivation of its members. Thus, it becomes imperative for
managers to understand the process of motivation and how it works.

Process of Motivation
The process of motivation has three main elements: motive, behavior, and goal. Motive
refers to the cause or reason why a person behaves in a certain way. The motives of a
person can be primary or secondary. Primary motives are those that are necessary for the
survival of a person. These include basic necessities, such as food, shelter, and clothing. In
an organizational setup, it might translate to monetary compensation and health benefits
since these will enable a person to get access to those necessities. On the other hand,
secondary motives are social needs that often play a vital role in the emotional
development of a person, which could be in the form of achievements, belongingness, and
authority.

Whether primary or secondary, a motive is a driving force that enables a person to act in a
certain way. This particular action geared towards fulfilling a motive is what we see as
behavior. For instance, a person’s enthusiasm or disinterest in doing a certain task is a
behavior that possibly reflects the motive of the person.

Meanwhile, a goal pertains to the fulfillment of a motive. In terms of worker’s performance,
it is ideal that the individual motives of members resonate with the goals of the
organization.

Types of Motivation
Considering how motivation works, managers should, therefore, use it by explaining why
and how the goals of the organization will benefit its members. Organization goals may be a
means to fulfill the employees’ motives. To do this, managers should first know what
motivates a person. Motivation comes in two forms.



Extrinsic motivation pertains to anything, tangible or intangible, that one could get or
avoid after completing a task. Extrinsic motivators follow the concept of operant
conditioning. In extrinsic motivation, people receive an external reward or avoid
punishment for their work or desirable behavior. For example, many companies offer
bonuses for exemplary work or additional payment for jobs outside one’s job description.
Extrinsic motivation includes recognition, compensation, fame, and deadlines, to name a
few.

Intrinsic motivation, however, occurs when people act because the act itself is satisfying
and brings a sense of joy. Intrinsic motivation includes enjoyment, challenge, autonomy,
and mastery. It is in the process of doing that pushes a person to complete the tasks. For
instance, a student may study a certain subject because of the satisfaction of learning new
concepts while studying, and not aim for high grades. In that sense, the activity itself
becomes the reward.

Between the two, it seems like it is easier to motivate a person through extrinsic motivation.
However, this is not always the case. This is because there are many factors that should be
considered in motivating a person, which are the bases of the different motivation theories.

Check Your Progress

Is it always effective to give extrinsic motivation to people to

increase their work performance? Explain.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

There are several motivation theories that seek to explain the nature of motivation and how
it affects the behavior of a person. These theories could serve as models to further
understand motivation, and how it should be applied in an organization.



Maslow’s Hierarchy of Needs
Maslow’s Hierarchy of Needs (1943) is one of the most recognized motivation theories that
factor in the different fundamental needs of an individual. These needs are arranged in
hierarchical order where there are different levels of needs starting from the lowest to the
highest. The theory argues that a person must first meet the needs at the lower levels for
him or her to focus on the higher level needs.

Maslow’s hierarchy can also be divided into two: deficiency needs and growth needs.
Deficiency needs arise due to a lack or deprivation and motivate people when goals are
unmet. The longer these needs are denied, the stronger one’s motivation to fulfill them
gets. To illustrate, an employee who seeks financial stability will continuously be motivated
by monetary compensation until he reaches the point where he can attain a sustainable
salary package. This desire translates to behaviors, such as taking on more work that is
given incentives on top of their base salary. The motivation for a particular deficiency needs
decreases when it is met.

On the other hand, growth needs do not stem from a lack of something, but rather from an
intrinsic desire to grow as a person. In contrast to deficiency needs, motivation increases as
growth needs are met. This is aligned with the idea of humanistic psychology that people
aim for continuous improvement of themselves.

Fig. 1. Different levels of Maslow’s Hierarchy of Needs



Physiological Needs
These needs occupy the lowest level and serve as the foundation of the hierarchy. Maslow
suggested that people should first ensure their survival: food, water, shelter, clothing, etc.
Otherwise, they will not be motivated to do anything else. This explains why we sometimes
experience difficulty in paying attention to someone talking when we are hungry. Hunger is
an indication that a basic need is not met.

Safety and Security Needs
After satisfying the physiological needs, a person can now be motivated to establish safety
and security. Safety refers to what we feel when we know that no harm will happen to us.
Security, on the other hand, pertains to actions done to prevent any form of threat that
might cause harm. To feel secure, people often seek to acquire and control financial
stability, material possessions, authority, and the like. However, these efforts do not always
result in a feeling of safety. An employee might feel secure upon getting a job promotion,
but feel unsafe because of threat from others who also desire the position.

Love and Belongingness Needs
Love and belongingness need come after meeting the safety and security needs. These
needs represent our relationships with family, friends, colleagues, and others with whom
we interact with. Satisfying these needs implies acceptance of others. As such, people tend
to follow social norms or cultures because these define appropriate and acceptable
behaviors in every relationship. In an organization that promotes a culture of excellence,
members might feel motivated to produce excellent outputs to satisfy the feeling of
belongingness.

Self-Esteem Needs
After gaining love and belongingness from others, a person can start developing a positive
feeling towards himself. This positive feeling can come from events, such as
accomplishments, recognitions, or achievements that make the person proud. One way
managers can satisfy the self-esteem of their subordinates is by recognizing a job well done.



Self-Actualization Needs
Self-actualization is the highest level of need that a person could achieve. It pertains to the
sense of fulfillment brought by the realization of one’s potentials, capabilities, and talents.
This is the point where people tend to focus not on what they can get, but on what they can
share.

It should, however, be noted that this need is hard to satisfy for two reasons. Because first,
one needs to meet the prior levels before reaching self-actualization. Second, it is
impossible to quantify one’s potential. Unlike the other needs that diminish once satisfied,
people tend to be motivated to pursue the further realization of their potentials. A person,
for instance, can keep on improving his or her craftsmanship since one cannot tell the
boundaries of his or her potential.

Alderfer’s ERG Theory
The ERG theory was developed by American psychologist Clayton Alderfer in 1969. This
clustered the levels of Maslow’s Hierarchy of Needs into three major types of needs:
existence, relatedness, and growth.

Existence is composed of physiological and safety and security needs, relatedness is
equivalent to love and belongingness, while growth comprises self-esteem and
self-actualization.

Fig. 2. The ERG Theory based on Maslow’s Hierarchy of Needs



In many ways, the ERG theory is similar to Maslow’s hierarchy of needs. However, the theory
differs in its argument that a person can satisfy the needs from different levels
simultaneously. In that sense, a person could strive to meet his or her social needs, love and
belongingness, and self-esteem needs at the same time.

Moreover, Alderfer also pointed out that there is a variation in how needs are prioritized
based on individual preferences which could change over time. For instance, a person may
value relatedness above growth when he or she is young, but this priority might change
later on in his or her adulthood.

McClelland’s Learned Needs Theory
This theory was developed in 1961 by David McClelland, an American psychologist.
McClelland proposed that the needs of a person are acquired and influenced by three
important aspects: achievement, power, and affiliation. These aspects or motivators are
present in every person, but in different proportions depending on their prior experiences.
In that sense, personal experiences play a key role in determining what would motivate a
person.

People with a high need for achievement have much desire to meet goals and advance in
their profession. They manage risk by avoiding low-risk situations because these lack
challenge and cannot be considered an achievement. Similarly, they avoid high-risk
situations because of a high chance of failure, and that any success may be due to luck and
not skills and capabilities. These qualities make them ideal members of an organization
because they possess an inner desire to accomplish something. However, these people
should be cautious of being demanding since not all people share the same intensity or
drive.

People with the need for power want control and authority. Driven by these desires, they
tend to seek ways on how to prevail, influence, or dominate a group. Also, their competitive
nature stems from their need to maintain status or be recognized. This nature enables them
to be committed to finishing tasks to ensure utmost compliance. A high need for power is
often sought in leadership roles. While this behavior works in making sure that the



organizational goals are met, they should be wary of becoming inflexible toward others. An
extremely high level of this need should be watched out for as they tend to resort to
zero-sum outcomes or decisions, wherein a win is obtained at the loss of others.

People who need affiliation prefer to be in the company of other people. They strive to
maintain harmonious relationships and avoid conflicts as much as possible. As such, they
are collaborative more than competitive which makes them suitable for positions that
require social interactions. However, these people tend to be too familiar which could affect
professionalism. Moreover, their sense of judgment is also questionable since they favor
relationships over objectivity in handling conflicts.

Herzberg’s Two-Factors Theory
Frederick Herzberg, an American psychologist, proposed the two-factor theory. These two
factors represent the satisfaction (motivators) and dissatisfaction (hygiene) of people.
Motivators are conditions toward the self that influence the level of commitment. These
include professional growth, employee empowerment, recognition, achievements, and work
challenges. On the other hand, hygiene pertains to conditions toward others or a working
environment that is often preferred or expected to be pleasant. Examples of this are salary,
job security, working conditions, work relationships, and rules and regulations.

It should be noted that the factors are independent of each other. This entails that lessening
the dissatisfaction will not result in satisfaction. Similarly, increasing the satisfaction will not
remove the dissatisfaction. Based on this premise, we can derive four conditions that could
describe an organization.



Table 1. Motivation and Hygiene Grid
Motivation

Low Motivation and Low Hygiene High Motivation and Low Hygiene

Apparently, this situation is not suitable In this situation, the employees have

for employees. Employees are not high satisfaction, but they also have
H
satisfied and experience much many dissatisfactions. A common
y
dissatisfaction. example of this is interesting work
g
positions that have an uncompetitive
i
salary or poor working conditions.
e
n Low Motivation and High Hygiene High Motivation and High Hygiene
e In this situation, employees enjoy low This is an ideal condition since
dissatisfaction, but the work offers less employees have high satisfaction and
satisfaction. An example of this is low dissatisfaction.
unfulfilling jobs that offer high salaries.

Adam’s Equity Theory
Behavioral psychologist John Stacey Adams developed the equity theory in 1963. As the
name of the theory suggests, it proposes that people become motivated when treatment is
based on balance or fairness. The measure of fairness comes from the personal evaluation
of the inputs and outputs in comparison to others. That is, a person will find it fair if
everyone who gives identical inputs gets the same output.

Input refers to anything that a person contributes to do a particular task. This includes
skills, resources, time, and expertise. Meanwhile, output refers to any rewards that can be
gained or consequences that can be avoided as a result of the inputs. This includes salaries,
benefits, recognition, and achievements.



Fig. 3. Sample perception of employees based on Equity Theory

Looking at the example above, it is apparent that individual perception plays a vital role in
determining personal satisfaction. This could lead to biased evaluation of own inputs that
could result in unrealistic expectations of outputs. Therefore, managers should be wary of
the different factors in the working environment and make sure that employees are treated
objectively. Managers could also set parameters on how employee inputs are measured to
minimize unrealistic expectations of employees.

Vroom’s Expectancy Theory
Expectancy theory was developed by Victor H. Vroom, a business professor at the Yale
School of Management in 1964. Unlike other theories that focus on the needs, this theory
highlights the expected outcome that is one of the sources of a person’s motivation. This
entails that the level of motivation of a person partially depends on how much the person
wants the expected outcome.

Essentially, motivation is a product of three main factors: valence, expectancy, and
instrumentality. Valence refers to the value associated with a particular outcome. Thus,



people could be motivated if they want a particular outcome. The opposite will happen if a
particular outcome does not appeal to the person. This explains why people who look for
challenges at work are not motivated by competitive salaries.

Expectancy is the belief that an increase in effort will translate to better performance or
results. For instance, an employee believes that overtime at work will translate to overtime
pay. This idea can also be applied to tasks that require coordinated efforts. If a member
thinks that the result will be the same because other members fail to do their part, he or
she will not be motivated.

Managers can strengthen expectancy by improving the conditions that affect the
employees’ beliefs. For example, having enough resources on hand makes it easier for the
employees to think that they can do better. Some other conditions are the extent of
manager supervision, level of expertise of employees, and conducive working environment.
Meanwhile, instrumentality is the belief that completing a task will lead to a particular
reward. This belief is often influenced by the clarity of the relationship between reward and
performance, level of trust toward superiors, and transparency of the process on how to get
the reward.

Fig. 4. Valence, instrumentality, and expectancy



Check Your Progress

Which motivation theory best explains your motivation process in

your studies? Discuss.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

In Philippine Context
According to Maslow, addressing the physiological need is the first step in motivating a
person. This requires a partial alleviation of poverty by finding sources of food, shelter,
clothing, etc. A consumer cooperative enterprise could address this problem by creating a
platform that could create inclusive wealth for its members while making the basic
necessities accessible for everyone. Increasing members’ financial independence would
empower them since their physiological, and safety and security needs are met. An
example of this enterprise is a transport group composed of jeepney drivers and
operators which is common in the Philippines. During the pandemic, we saw the decline of
Jeepney workers due to the quarantine protocols. Therefore, their main source of income
declined. This is the cause of the falling down of all their other needs such as physical and
psychological needs.



Wrap-Up
_____________________________________________________________________________________________
● Motivation is a psychological process that directs behavior. The motivational process
has three components: motivation, behavior, and goal.
● Maslow’s Hierarchy of Needs classifies the needs of a person in different levels and
requires the lower level to be met before proceeding to a higher level. On the other
hand, Alderfer’s ERG Theory is a modification of Maslow's Hierarchy of Needs and
identifies three major types of needs that are capable of being met at the same time.
● McClelland’s Learned Needs Theory explains that human behavior is defined by
three main motivators that are influenced by personal experiences. These motivators
are achievement, affiliation, and power.
● Herzberg’s Two-factor Theory states that motivation is determined by differing
combinations of self-directed conditions that influence the level of commitment
(motivators) and external conditions that one expects to be pleasant (hygiene).
Meanwhile, Adam’s Equity Theory argues that motivation happens upon achieving
equity based on personal evaluation of inputs and their corresponding output.
● Vroom’s Expectancy Theory points out that motivation is based on how much the
person wants the reward (valence), a belief that greater effort leads to better results
(expectancy), and assurance that efforts have a corresponding reward.
_____________________________________________________________________________________________

Try This!
A. Matching Type. Match the theories in Column A with its key concepts in Column B.

Column A Column B
______ 1. Alderfer’s ERG Theory a. Hygiene and motivators
______ 2. McClelland’s Learned Needs b. valence and instrumentality
______ 3. Herzberg’s Two-factor Theory c. relatedness, existence, and growth



______ 4. Adam’s Equity Theory d. achievement, affiliation, and

power
______ 5. Vroom’s Expectancy Theory e. inputs and outputs

B. True or False. Write true if the statement is correct. Otherwise, write false.

___________ 1. Being able to avoid negative consequences is an example of extrinsic

motivation.
___________ 2. The ERG theory explains that existence and relatedness needs can be

achieved at the same time.
___________ 3. According to Maslow, a person can feel safe and secured despite the

absence of physiological needs.
___________ 4. Based on Herzberg, satisfaction and dissatisfaction are two

independent concepts.
___________ 5. The Learned theory points out that the motivation of a person is
driven by motivators and hygiene factors.
___________ 6. Different forms of relationships fall under self-esteem needs in
Maslow’s Hierarchy of Needs.
___________ 7. Valence refers to how much a person wants a particular result.
___________ 8. Self-actualization is a need that is difficult to satisfy.
___________ 9. A person that is motivated by affiliation values relationships that
make him or her vulnerable to becoming biased.
___________ 10. According to Herzberg, eliminating dissatisfaction will result in
satisfaction.



Challenge Yourself
Short-Response Essay. Analyze the situations carefully, then answer the following
questions. Your answers will be scored using the rubric at the end of this section.

1. Upon examining the different motivation theories, which of them best explains the
motivation process of a person? Justify your answer.
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

2. Is it to the advantage of an organization to apply a single motivation theory? Explain.
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

Suggested Rubric for Grading
The rubric below is a suggested one. Your teacher may modify the rubrics based on your
needs. Consult your teacher for the final rubric.

Performance Levels
1 2 3 Suggested
Criteria Score
Beginning Proficient Advanced Weight
Proficiency Proficiency
The student provides The student provides The student

Quality of Ideas
an unclear or limited appropriate answers provides extensive
idea about the topic based on the topic answers based on
discussed. discussed. the topic discussed × 3
and cites at least 1
evidence to support
the claims.



The answers are The answers are The answers are
Structure
disorganized and organized but require complete,
× 2
require more than 5 at most 5 revisions. well-organized, and
revisions. require no revisions.
The answers have The answers have 4 The answers have 0

Grammar
more than six to 6 grammatical to 3 grammatical × 1
grammatical errors. errors. errors only.
Total Possible Score 18

Bibliography
Daft, Richard. Organization Theory and Design. Boston: South-Western Cengage Learning,
2010.

Dessler, Gary. Human Resource Management. New Jersey: Pearson, 2010.

Hersey, Paul, Kenneth Blanchard, and Dewey Johnson. Management of Organizational
Behavior: Leading Human Resources. New Jersey: Prentice-Hall, 2007.

Maslow, Abraham. Motivation and Personality. New Jersey: Pearson, 1997.

Williams, Chuck. Organization and Management: Concepts and Applications. Quezon City:
Abiva Publishing House, Inc., 2017.


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Unit 6: Management Functions: Leading

Try This! 15

Challenge Yourself 17

Learning Objectives DepEd Learning Competency

● Discuss the diﬀerent theories of

Rank It! 10 minutes

As a member of a particular organization, what motivates

Check Your Progress

Check Your Progress

______ 1. Alderfer’s ERG Theory a. Hygiene and motivators

______ 2. McClelland’s Learned Needs b. valence and instrumentality

______ 3. Herzberg’s Two-factor Theory c. relatedness, existence, and growth

______ 4. Adam’s Equity Theory d. achievement, aﬃliation, and

______ 5. Vroom’s Expectancy Theory e. inputs and outputs

___________ 1. Being able to avoid negative consequences is an example of extrinsic

___________ 2. The ERG theory explains that existence and relatedness needs can be

___________ 3. According to Maslow, a person can feel safe and secured despite the

___________ 4. Based on Herzberg, satisfaction and dissatisfaction are two

___________ 7. Valence refers to how much a person wants a particular result.

___________ 8. Self-actualization is a need that is diﬃcult to satisfy.

The student provides The student provides The student

The answers have The answers have 4 The answers have 0

Total Possible Score 18

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