Management Motivation Theory Lyst9411

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Table of Contents
1 Motivation ............................................................................................................................................................ 3
2 Process of Motivation ........................................................................................................................................... 3
.................................................................................................................................................................................. 3
3 Two basic Types of Motivation ............................................................................................................................. 4
4 Motivation Theories ............................................................................................................................................. 5
5 Content based theories of motivation ................................................................................................................. 7
5.1 Maslow Need Theory .................................................................................................................................... 7
Given by – Abraham Harold Maslow...................................................................................................................... 7
5.2 Alderfers’ ERG theory ................................................................................................................................... 9
5.3 McCllelands’ theory of needs .....................................................................................................................12
5.4 Herzberg’s two factor theory .....................................................................................................................14
6 Process based Theories of Motivation ...............................................................................................................15
6.1 Adam’s Equity Theory .................................................................................................................................15
6.2 Vroom Expectancy Theory ..........................................................................................................................18
Expectancy - ............................................................................................................................................................18
Instrumentality - .....................................................................................................................................................18
Valence - .................................................................................................................................................................18
7 Previous year questions for practice ..................................................................................................................19
8 Our 6 Step Formula to Become an RBI Manager................................................................................................21
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1 Motivation
Motivation is the word derived from the word 'motive' which means needs, desires, wants or
drives within the individuals. It is the process of stimulating people to actions to accomplish the
goals. In the work goal context the psychological factors stimulating the people's behavior can
be - desire for money success.
According to some eminent authors, motivation can be defined as
• “Motivation can be defined as the desire to achieve some goal” (Hays, & Hill, 2001).
• “Motivation is the process whereby goal‐directed activity is instigated and sustained”
(Pintrich, & Schunk, 1996).
Motivation actually describes the level of desire, employees feel to perform, regardless
of the level of happiness. Employees who are adequately motivated to perform will be
more productive, more engaged and feel more invested in their work. When employees
feel these things, it helps them, and thereby their managers, be more successful.
2 Process of Motivation
Process of motivation starts with a “Need” and then the rational human beings faces or
experiences the tension. This tension is developed due to the need which is still not
satisfied. As a result, human beings starts goal-directed-behavior. This behavior will
satisfy the need of the human beings and thus, the humans feels contended and happy. If
the need is not satisfied, then the whole process again starts.
Role of Feedback – It involves the analysis whether the need satisfaction is proper or not.
For Example, if the thirsty person is just given one glass of water, then his need might not
get sastified
3 Two basic Types of Motivation
3.1 Intrinsic Motivation – Intrinsic motivation is when you feel inspired or energized to
complete a task because it is personally rewarding. In other words, you're performing the activity
because of some internal drive as opposed to an external reward of some kind. With intrinsic
motivation, the behavior itself becomes the reward.
Examples –
➢ Doing sports because you enjoy feeling alive

➢ Staying longer at work because you believe in your work
➢ Investing money because you want to become financially independent
➢ Traveling because you want to explore different cultures
➢ Working out because you like being active and fit
➢ Practicing mindfulness because it helps you making better decisions
3.2 Extrinsic Motivation - Extrinsic motivation is when you are inspired to perform a task to
either earn a reward or avoid punishment. In the case of extrinsic motivation, you're not
completing the task because you like it or find it satisfying. Instead, you're completing it because
you think you'll avoid something unpleasant, or you'll get something in return.
Examples -
➢ Going to work because you must earn money

➢ Studying because you want to get a good grade
➢ Participating in a sport because you want to win awards
➢ Employees in Reliance working together because they want to get an early promotion
For Example – In Tata sons, there are two types of employees.
The first group of employees are coming to the job place just for money and they think
that doing their job on time will keep their superior happy. The second group of employees
are coming to the job place not just for money, they work hard for their inner satisfaction
and they want to accomplish their own sense of achievement while doing their job.
Here, we can say that, those employees who fall in group one are Extrinsically motivated ,
because they are coming to the work place to earn “money”. Here money acts as an
external factor. But the employees of the second group are intrinsically motivated,
because they want to satisfy their inner soul. They are working for inner sense of
achievement, which is internal to human beings, that’s why we say second group
employees are intrinsically motivate.
4 Motivation Theories
Generally, there are two types of motivational theories
4.1 – Content theories
These theories look for the factors inside people that cause, sustain or stop behavior.
Their main focus are the needs that motivate people. The content theories mainly imply
that individuals are unique and may have unique sources of motivation. It would be useful
for managers to understand the sources of motivation for each individual employee.
The basis of the content theories is that absence of motivating factors creates tension that
can trigger a negative behavioral performance. These theories suggest that when people
do not get what they believe they need, they try to satisfy these needs.
4.2– Process Theories
The process theories on the other hand explore how behavior is caused, sustained or
stopped by the motivational factors. The process theories mainly imply that individual
choices are based on preferences, reward factors and sense of accomplishment.
Therefore, the managers should understand the process of motivation.
The following Flow chart depicts the theories of motivation in a more simplified manner
-
Maslow Theory
Alderfers’ ERG
theory
Content based
Theories.
McCllelands’
theory of needs
Motivation
Two Factor theory
theories
Adams equity
theory
Process based
Theories
Vrooms
expectancy theory
5 Content based theories of motivation

5.1 Maslow Need Theory
Given by – Abraham Harold Maslow
Maslow’s hierarchy of needs is a theory of psychology explaining

human motivation based on the pursuit of different levels of needs. The theory states
that humans are motivated to fulfill their needs in a hierarchical order. This order begins
with the most basic needs before moving on to more advanced needs. The ultimate goal,
according to this theory, is to reach the fifth level of the hierarchy: self-actualization.
Maslow’s hierarchy of needs was first introduced in Abraham Maslow’s 1943 paper, “A
Theory of Human Motivation“. Maslow later refined this theory in 1954 with his book,
“Motivation and Personality“
Five needs according to Maslow’s need theory are -
The above picture is also

called as “Need Pyramid”
• Physiological Needs - They are the most essential things a person needs to survive. They
include the need for shelter, water, food, warmth, rest, and health.
• Safety Needs - relate to a person’s need to feel safe and secure in their life and
surroundings. And this needs also revolves around the social security schemes, like
pension.
• Love and Belonging Needs - This level of the hierarchy outlines the need for friendship,
intimacy, family, and love. Humans have the need to give and receive love; to feel like they
belong in a group.
• Esteem Needs - Esteem needs are related to a person’s need to gain recognition, status,
and feel respected.
• Self-Actualization Needs - Self-actualization relates to the realization of an individual’s full
potential. At this level, people strive to become the best that they possibly can be.
Implication at workplace
This theory of needs applied to the work situations implies that managers have the
responsibilities, firstly to make sure that the deficiency needs are met. Only once these
deficient needs are met, one can go for self-actualization needs.
For example –
A company Kellogg’s values the safety of all employees. The company is committed to
provide a safe and a healthy work environment to prevent accidents. In such companies
the safety needs of employees are fully met and as a result employees of this organization
will move towards the higher-level needs.
5.2 Alderfers’ ERG theory
Given by - Clayton Alderfer
To simply put, this theory is an extension of the Maslow theory. ERG theory consists of
three groups of core needs: existence, relatedness, and growth. ERG theory shows that
a person works on fulfilling these needs simultaneously or separately depending on the
difference of goals, status, and the environment.
Existence (E) needs compromises the needs of basic physiological and safety needs
Relatedness (R) needs takes the Social and belongings needs
Growth (G) needs combines the Self-esteem and Self-actualization needs.
Implications in Workplace
1. On a work level, Alderfer’s model implies that managers must recognize their
employees’ multiple simultaneous needs. Focusing exclusively on one need at a time will
not motivate your people.
2. The frustration-regression principle impacts workplace motivation. For example, if
growth opportunities are not provided to employees, they may regress to relatedness
needs, and socialize more with co-workers. If you can recognize these conditions early,
steps can be taken to satisfy the frustrated needs until the employee is able to pursue
growth again.
Example -
The Google as a company, fulfils relatedness needs by providing various levels of

communication, valuing employee feedback, and ensuring that employees are facilitated
to build satisfying interpersonal relationships with other employees and with senior
management. Thus, according to this theory, the need for affiliation of Google employees
is satisfied and they can move to a higher level of needs, i:e Need for Growth.
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Difference between the Maslow theory of needs and Alderfer’s ERG theory
5.3 McCllelands’ theory of needs
Given by - David McClelland
David C. McClelland was an American psychologist. He is well known for his work and
development of need theory on motivation. David McClelland and his associates began a
study of three needs that motivates human behavior that is power, affiliation
and achievement in the early 1950s. McClelland believes that each person has a need
for all three and other needs but that people differs in the degree to which the various
needs motivate their behavior.
Three Needs according to McClelland theory of needs are -
Need for Achievement –
The need for achievement would fall between needs for esteem and self actualization.
This need is satisfied not by the manifestations of success, which confer status, but with
the process of carrying work to its successful completion. Here the manager must give
the challenging task to the employees who are looking dull and de-motivated.
Example - PepsiCo’s Indian-origin chief Indra Nooyi, a high achiever, is the 12th highest
paid corporate woman in the U.S and also rated the fourth most powerful woman in
business by Fortune magazine. She has gone on records to say, “If you do a job, do it better
than anybody else”
Need for Affiliation –
The need for affiliation is defined as a desire to establish and maintain friendly and warm
relations with other people. The need for affiliation, in many ways, is similar to Maslow’s
social needs
Example – personal relationships with other individuals, which manifests itself in the urge
to form friendships and attachments and to join organizations and enjoy social gatherings.
People with a high need for affiliation often seek the approval and acceptance of others.
Need for Power –
The need for power is concerned with making an impact on other, the desire to influence
other, the ways to change people, and the desire to make a difference in life. People with
a high need for power are people who like to be in control of people and events. This
results in ultimate satisfaction to man.
Example - Elon Musk, CEO of Tesla. He thinks and acts on a larger and more cosmic scale
than we are accustomed to as an entrepreneur. He has plan to set up human colonies on
the planet Mars and thinks technology will turn the humans into pets. But beyond the
hype, his enormous new worth and twitter presence clearly shows his needs for power.
People with diverse needs are motivated differently
1. High need for achievement - High achievers should be given challenging projects
with reachable goals. They should be provided frequent feedback. While money
is not an important motivator in itself. Rather, it is an effective form of feedback.
2. High need for Affiliation - Employees with a high affiliation need perform best in a
cooperative environment.
3. High need for power - Management should provide power seekers the opportunity
to manage others.
4. According to the research by McClelland and others, Effective managers show high
on achievement and power and low on affiliation.
5. Achievement need may be developed at an early stage as well as at a later stage

through training and counselling
5.4 Herzberg’s two factor theory
Given by - Frederick Herzberg
In the late 1950s, Frederick Herzberg, considered by many to be a pioneer in motivation

theory, interviewed a group of employees to find out what made them satisfied and
dissatisfied on the job. Herzberg went on to develop his theory that there are two
dimensions to job satisfaction: motivators and “hygiene”.
Hygiene factors, according to Herzberg, cannot motivate employees but can minimize
dissatisfaction, if handled properly. In other words, they can only dissatisfy if they are
absent or mishandled. Hygiene topics include company policies, supervision, salary,
interpersonal relations and working conditions. They are issues related to the employee's
environment.
Example for Hygiene factors -
• Pay
• Company Policies and administrative policies
• Fringe benefits
• Physical Working conditions
• Status Interpersonal relations
• Job Security
Motivators, on the other hand, create satisfaction by fulfilling individuals' needs for
meaning and personal growth. They are issues such as achievement, recognition, the
work itself, responsibility, and advancement. Once the hygiene areas are addressed, said
Herzberg, the motivators will promote job satisfaction and encourage production.
Example for motivating factors -
• Recognition
• Sense of achievement -
• Growth and promotional opportunities.
• Responsibility.
• Meaningfulness of the work.
Implication at Workplace
The Two-Factor theory suggests that the managers should focus on ensuring the
acceptability of the hygiene factors to avoid employee dissatisfaction. Furthermore, the
managers must make certain that the work is motivating and rewarding so that the
employees are motivated to work and perform firmer and better.
For Example
In Tata Motors. employees are equipped with good salary and perks, at the same time
there is good work environment and optimum freedom to employees is provided and the
status of other hygiene factors is also good. Beside the hygiene factors, Tata motors also
provide good motivational factors as well. These factor include, Learning Advisory
Council which designs, implement and reviews the learning agenda of employees.
Also there is one Fast Track Selection scheme which provides fast track growth
opportunities for growth and development for its employees, along with providing them
challenging work at the mid-level management.
Therefore, Employees can take pride while working with the company because both the
factors, that is, hygiene and motivational factors are taken care off.
6 Process based Theories of Motivation

6.1 Adam’s Equity Theory
Given by - John Stacey Adams
The Adam’s Equity Theory posits that people maintain a fair relationship between the
performance and rewards in comparison to others. In other words, an employee gets de-
motivated by the job and his employer in case his inputs are more than the outputs.
Individuals make contributions (inputs) for which they expect certain rewards
(outcomes) and To validate the exchange, an individual compares his input and outcomes
with those of others and try to rectify the inequality.
Employees determine what their equitable return should be after comparing their inputs
and outcomes with those of their co-workers. This concept is referred to as "social
comparison".
Adam’s equity theory shows the level of motivation among the individuals in the working
environment. An individual is said to be highly motivated if he perceives to be treated
fairly. While the feelings of de-motivation arise, if an individual perceives to be treated
unfairly in the organization.
When people feel that their inputs far outweigh the outputs they receive in return,
motivation, and productivity slumps. The greater the perceived disparity between the
inputs and the outputs, the greater the demotivation.
Another important aspect is that people tend to compare their output/input with the
output/Input of others (references in the market). For example, if a co-worker or other
friends in other company has been rewarded more compared to their input then
employee will feel demotivated.
Three types of Inequalities
Overpaid Inequity: When an individual perceives that his outcomes are more as
compared to his inputs, in relation to others.
Underpaid Inequity: When an individual perceives that his outcomes are less as
compared to his inputs, in relation to others.
Equity: An individual perceives that his outcomes in relation to his inputs are
equal to those of others.
Implication at workplace -
1. People always try to maximize their outcomes, so managers should try to take
maximum work from their subordinates and should pay them according to their output.
2. Individuals in an inequitable relationship feel 'distressed'. Those who get too little feel
angry/humiliated, while those with too much feel guilt or shame.
3. Equity theory thus helps explain why pay and conditions alone do not determine
motivation because even good pay and conditions may lead to dissatisfaction if
colleagues are getting more pay and better conditions.
4.. It’s based on the perception of the employees. We form perceptions of what
constitutes a fair ratio (a balance or trade) of inputs and outputs by comparing our own
situation with other people. This helps to explain why people are so strongly affected by
the situations (and views and gossip) of colleagues, friends, partners etc., in establishing
their own personal sense of fairness or equity in their work situations.
5. People measure the totals of their inputs and outcomes. This means a working mother
may accept lower monetary compensation in return for more flexible working hours.
For example,
Recently, Amazon announced it had upped the minimum wage for all U.S. employees to
$15 per hour and was taking similar actions in other parts of the world. Many applauded
Amazon for the move but also believes that the move came because of similar
announcement by other US major Giants like Gravity Payments, Wal-Mart etc. Amazon did
so to ensure equitable pay with other organizations because otherwise as per Adam's
Equity theory it would have lead to negative impact on employees.
Moreover, when the employees of this organization will do a social comparison, they will
find that their inputs are matching their own output, thus no inequality will exist between
them.
6.2 Vroom Expectancy Theory
Given by – Victor Vroom
Vroom’s Expectancy Theory was proposed by Victor. H. Vroom, who believed that people
are motivated to perform activities to achieve some goal to the extent they expect that
certain actions on their part would help them to achieve the goal.
Vroom’s Expectancy Theory is based on the assumption that an individual’s behaviour

results from the choices made by him with respect to the alternative course of action,
which is related to the psychological events occurring simultaneously with the behaviour.
This means an individual selects a certain behaviour over the other behaviours with an
expectation of getting results, the one desired for.
Thus, Vroom’s Expectancy Theory has its roots in the cognitive concept, i.e. how an
individual processes the different elements of motivation. This theory is built around the
concept of valence, instrumentality, and Expectancy and, therefore, is often called as VIE
theory.
Expectancy -
Expectancy is the idea that increasing the amount of effort will increase performance (if
I work harder then I will perform better).
Instrumentality -
Instrumentality is the idea that if you perform better, then the outcome will be
achieved (If I perform well, there I will achieve the desired outcome).
Valence -
Valence is the perceived value the employee puts on the outcome. For the valence to be
positive, the person must prefer attaining the outcome than not attaining it.
Expectancy Theory is important for you as a manager because it provides some insights on
why your employees may behave in a certain way. While you have the power to force
your employees to take a certain action, if you use a force strategy too frequently you will
harm employee morale and motivation.
Manager’s job will be much easier when your team members want to do what you expect
of them. Using Vroom’s Expectancy Theory with effective communication collaboration,
and coaching techniques can give you the ability to achieve your departmental
outcomes.
For Example
Expectancy – In Google, the Company puts a lot of emphasis on effort-performance

relationship. So, employees are given freedom in terms of setting the goals. Company has
introduced the Objective Key Result (OKR) formula for goal setting.
Instrumentality – Moreover in Google, the company offers a generous reward and

recognition program based on the achievement of personal growth set by each
employee. From recognizing the employee through Wall of Fame to generous cash
rewards , Google do know how to motivate its employees.
Valence – Google also understand the motivational effects of differentiating rewards. For
some employees, the best reward is the opportunity to work from home, while other
employees are motivated by the opportunity to win a trip.
7 Previous year questions for practice
Question 1 - A framework developed by Frederick Herzberg, that suggests, there are

certain factors in the workplace that can cause job satisfaction and a separate set of
factors can cause dissatisfaction. Which theory are we talking about ? (RBI Phase 2
exam - 2017)
1. Two Factor Theory

2. Expectancy Theory
3. Adam’s equity theory
4. Maslow Theory of needs.
Answer – 1, two factor theory
Question 2 - Which of the following is not a hygiene factor as per Two Factor Theory?
(RBI phase 2 exam – 2018)
1. Supervision
2. Recognition
3. Salary
4. Job Security
Answer – Option 2, because recognition is the motivating factor. It is internal to

human beings.
Question 3 - Alderfer has condensed 5 needs of Maslow’s theory into 3 categories of

human needs in which theory? (RBI phase 2 exam – 2019)
1. Expectancy theory
2. Hygiene theory
3. ERG theory
4. None of the above
Answer – Option 3
Question 4 - R in ERG stands for what? (RBI phase 2 exam – 2018)
1. Relation
2. Root cause
3. Relatedness
4. Recycle
Answer – Option 3
8 Our 6 Step Formula to Become an RBI Manager

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1|P a g e Q U E R Y ? H E L L O @ E D U T A P . C O .

3 Two basic Types of Motivation

➢ Doing sports because you enjoy feeling alive

➢ Going to work because you must earn money

Generally, there are two types of motivational theories

4.1 – Content theories

5 Content based theories of motivation

Given by – Abraham Harold Maslow

Maslow’s hierarchy of needs is a theory of psychology explaining

Five needs according to Maslow’s need theory are -

The above picture is also

5.2 Alderfers’ ERG theory

Given by - Clayton Alderfer

Relatedness (R) needs takes the Social and belongings needs

Growth (G) needs combines the Self-esteem and Self-actualization needs.

The Google as a company, fulfils relatedness needs by providing various levels of

Three Needs according to McClelland theory of needs are -

Need for Achievement –

Need for Power –

People with diverse needs are motivated differently

5. Achievement need may be developed at an early stage as well as at a later stage

In the late 1950s, Frederick Herzberg, considered by many to be a pioneer in motivation

Example for Hygiene factors -

Example for motivating factors -

6 Process based Theories of Motivation

Given by - John Stacey Adams

Vroom’s Expectancy Theory is based on the assumption that an individual’s behaviour

Expectancy – In Google, the Company puts a lot of emphasis on effort-performance

Instrumentality – Moreover in Google, the company offers a generous reward and

7 Previous year questions for practice

Question 1 - A framework developed by Frederick Herzberg, that suggests, there are

1. Two Factor Theory

Answer – 1, two factor theory

Answer – Option 2, because recognition is the motivating factor. It is internal to

Question 3 - Alderfer has condensed 5 needs of Maslow’s theory into 3 categories of

Question 4 - R in ERG stands for what? (RBI phase 2 exam – 2018)

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