ADMINISTRATION AND LEADERSHIP

GROUP 2 ASSIGNMENT

MEMBERS

MUKWANA CAROLINE

NAMANYA IRENE

OYELLA BEATRICE

NAMUBIRU EVELYN

THEORIES OF MOTIVATION

DEFINITION

Refers to inspiration, desire, morale that describes the willingness to execute

duties in pursuit of organizational objectives

OR

Internal and external factors that stimulate desire and energy in people to be
continually interested and committed to job, role or subject or to make an effort to
attain a goal

Importance of motivation to the organization

Needs approaches

A need-based theory of motivation is the belief that a person is motivated toward

actions based upon the desire to fulfill their needs. There are several popular
theories of motivation based upon the fulfillment of needs. These various theories
define needs differently, but they all support the position that a person is motivated
by seeking to fulfill unmet needs

MASLOWS HIERARCHY OF NEEDS

Maslow's hierarchy of needs theory is a psychological theory that states a person is

motivated by the fulfillment of five levels of needs. Maslow's five levels of need
are: physiological, safety, social, esteem and self-actualization

Merits of Maslow's hierarchy of needs

 Maslow’s theory of motivation helps the managers in understanding how to

motivate the employers.
 Maslow’s theory of motivation theory is very simple, common and easily
understandable.
 It accounts for both inter-personal and intra-personal variations in human
behavior
 Maslow’s theory of motivation theory is dynamic because it presents
motivation as a changing force; changing from one level of needs to the
other.

Limitations of Maslow’s Theory

 It is essential to note that not all employees are governed by same set of
needs. Different individuals may be driven by different needs at same point
of time. It is always the most powerful unsatisfied need that motivates an
individual.
 The theory is not empirically supported.
 The theory is not applicable in case of starving artist as even if the artist’s
basic needs are not satisfied, he will still strive for recognition and
achievement.
Implications of Maslow’s Hierarchy of Needs Theory for Managers

 As far as the physiological needs are concerned, the managers should give
employees appropriate salaries to purchase the basic necessities of life.
Breaks and eating opportunities should be given to employees.
 As far as the safety needs are concerned, the managers should provide the
employees job security, safe and hygienic work environment, and retirement
benefits so as to retain them.
 As far as social needs are concerned, the management should encourage
teamwork and organize social events.
 As far as esteem needs are concerned, the managers can appreciate and
reward employees on accomplishing and exceeding their targets. The
management can give the deserved employee higher job rank/position in the
organization.
 As far as self-actualization needs are concerned, the managers can give the
employees challenging jobs in which the employees’ skills and
competencies are fully utilized.

HERBZBERG TWO- FACTOR THEORY

In 1959, Frederick Herzberg, a behavioral scientist proposed a two-factor theory or

the motivator-hygiene theory. According to Herzberg, there are some job factors
that result in satisfaction while there are other job factors that prevent
dissatisfaction. According to Herzberg, the opposite of “Satisfaction” is “No
satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”.

Merits of two- factor theory

 It is a rational approach to motivation. It helps in understanding the effect of

job content on motivation of employees.
 It clearly distinguishes between the factors that motivate employees on the
job and the factors that maintain employees on the job.
 It recommends specific measures (i.e. motivators) to improve motivation
levels.
 It explains the significance of job enrichment on the job redesign and
motivation.
Limitations of Two-Factor Theory

The two factor theory is not free from limitations:

 Herzberg assumed a correlation between satisfaction and productivity. But

the research conducted by Herzberg stressed upon satisfaction and ignored
productivity.
 The theory’s reliability is uncertain. Analysis has to be made by the raters.
The raters may spoil the findings by analyzing same response in different
manner.
 No comprehensive measure of satisfaction was used. An employee may find
his job acceptable despite the fact that he may hate/object part of his job.
 The two factor theory is not free from bias as it is based on the natural
reaction of employees when they are enquired the sources of satisfaction and
dissatisfaction at work. They will blame dissatisfaction on the external
factors such as salary structure, company policies and peer relationship.
Also, the employees will give credit to themselves for the satisfaction factor
at work.

Implications of Two-Factor Theory for a manager

 The Two-Factor theory implies that the managers must stress upon
guaranteeing the adequacy of the hygiene factors to avoid employee
dissatisfaction. Also, the managers must make sure that the work is
stimulating and rewarding so that the employees are motivated to work and
perform harder and better.
 This theory emphasize upon job-enrichment so as to motivate the
employees. The job must utilize the employee’s skills and competencies to
the maximum. Focusing on the motivational factors can improve work-
quality.
ERG THEORY OF MOTIVATION

To bring Maslow’s need hierarchy theory of motivation in synchronization with

empirical research, Clayton Alderfer redefined it in his own terms. His rework is
called as ERG theory of motivation. He categorized Maslow’s hierarchy of needs
into three simpler and broader classes of needs:

Existence needs- These include need for basic material necessities. In short, it
includes an individual’s physiological and physical safety needs.

Relatedness needs- These include the aspiration individuals have for maintaining
significant interpersonal relationships (be it with family, peers or superiors),
getting public fame and recognition. Maslow’s social needs and external
component of esteem needs fall under this class of need.

Growth needs- These include need for self-development and personal growth and
advancement. Maslow’s self-actualization needs and intrinsic component of esteem
needs fall under this category of need.

Merits of ERG theory

 Alderfer’s ERG theory is more consistent with our knowledge of THEORY

individual differences among people. Every individual will have different
importance for different group of needs depending upon his education,
family background and cultural environment.
 ERG theory takes the strong points of the earlier content theories but it is
less restrictive and limiting as compared to the others.

Limitations of ERG theory

 The ERG theory does not offer clear cut guidelines. This theory says that an
individual can satisfy any of the three needs first. But how will we
determine which of the three needs is more important to that person.
 This theory is a new concept as compared to the Maslow’s theory.
Alderfer’s research has indicated some degree of support for the theories but
yet it is too early to pass judgment on the overall validity of the theory.
Implications of the ERG Theory

 Managers must understand that an employee has various needs that must be
satisfied at the same time.
 According to the ERG theory, if the manager concentrates solely on one
need at a time, this will not effectively motivate the employee. Also, the
frustration-regression aspect of ERG Theory has an added effect on
workplace motivation.

COGNITIVE APPROACHES

VROOMS EXPECTANCY THEORY

The expectancy theory was proposed by Victor Vroom of Yale School of

Management in 1964. Vroom stresses and focuses on outcomes, and not on needs
unlike Maslow and Herzberg.

The theory states that the intensity of a tendency to perform in a particular manner
is dependent on the intensity of an expectation that the performance will be
followed by a definite outcome and on the appeal of the outcome to the individual.

The Expectancy theory states that employee’s motivation is an outcome of:

 How much an individual wants a reward (Valence),

 the assessment that the likelihood that the effort will lead to expected
performance (Expectancy) and
 The belief that the performance will lead to reward (instrumentally)
In short, Valence is the significance associated by an individual about
the expected outcome. It is an expected and not the actual satisfaction
that an employee expects to receive after achieving the goals.
 Expectancy is influenced by factors such as possession of appropriate
skills for performing the job, availability of right resources,
availability of crucial information and getting the required support for
completing the job.
 Instrumentality is the faith that if you perform well, then a valid
outcome will be there. Instrumentality is affected by factors such as
believe in the people who decide who receives what outcome, the
Simplicity of the process deciding who gets what outcome, and clarity of
relationship between performance and outcomes

Thus, the expectancy theory concentrates on the following three

relationships:
Effort-performance relationship: What is the likelihood that the
individual’s effort be recognized in his performance appraisal?
Performance-reward relationship: It talks about the extent to which the
employee believes that getting a good performance appraisal leads to
organizational rewards.
Rewards-personal goals relationship: It is all about the attractiveness or
appeal of the potential reward to the individual.
Vroom was of view that employees consciously decide whether to perform
or not at the job. This decision solely depended on the employee’s
motivation level which in turn depends on three factors of expectancy,
valence and instrumentality.

Merits of the Expectancy Theory

 It is based on self-interest individual who want to achieve maximum

satisfaction and who wants to minimize dissatisfaction.
 This theory stresses upon the expectations and perception; what is real
and actual is immaterial.
 It emphasizes on rewards or pay-offs.
 It focuses on psychological extravagance where final objective of
individual is to attain maximum pleasure and least pain.

Limitations of the Expectancy Theory

 The expectancy theory seems to be idealistic because quite a few

individuals perceive high degree correlation between performance and
rewards.
 The application of this theory is limited as reward is not directly correlated
with performance in many organizations. It is related to other parameters
also such as position, effort, responsibility, education, etc.

Implications of the Expectancy Theory

  The managers can correlate the preferred outcomes to the aimed
performance levels.
 The managers must ensure that the employees can achieve the aimed
performance levels.
 The deserving employees must be rewarded for their exceptional
performance.
 The reward system must be fair and just in an organization.
 Organizations must design interesting, dynamic and challenging jobs.
 The employee’s motivation level should be continually assessed through
various techniques such as questionnaire, personal interviews, etc.

EQUITY / SOCIAL COMPANION THEORY

John Stacy Adams propounded the Equity Theory of Motivation in 1963. It is

based on the cognitive motivation theory. According to this theory, people want to
be treated fairly in relation to other for motivation.

Input and outcome ratio will help the individual to have an idea of being in a
situation of equity or inequality. Inputs are the individual's efforts, responsibility
and other factors that they put into the job, whereas outcomes are the promotion,
pay raise, recognition of the work done in exchange for the inputs.

Thus, the equity theory states that an individual compares his input/ outcomes to
that of the other working in the same position in the organization or in other
organizations and tries to establish equity. In the process of comparison, if the
individual perceives any sort of inequity he or she will change his or her behavior
at work.

Equity theory is based on the assumption that members of an organization

experience strong expectations of Justice, balance and fairness in treatment by the
employees.

In equity theory, two variables are important, i.e. inputs and outcomes. Inputs are
the qualities and elements which a member of an organization perceives that he
puts into his job outcomes are the things which the member receives from the
organization and his job. Inputs and outcomes are important elements in the
exchange relationship between the organization and its members. When the
individual finds equity in the situation or feels that what he receives from the
organization in terms of treatment and compensation is fair in terms of the effort
and skills, he contributes to the organization, he is satisfied with the arrangement,
and is normally committed to the organization and its goals.

Merits of Equity Theory

 It helps in finding the equity between the groups so that group

motivation is enhances.
 It helps in providing the fair pay to the employees as per their
personal capabilities.
 It helps in seeing whether people feel the inequity by jobs or the pay
gives them.
 It also determines how input and outcomes of a person can be
matched.

Limitations of the Equity Theory

 Equity theory is not precise enough to predict which actions are most
probable. The methods of inequity reduction are also applicable to reduction
of guilt caused by feeling of over-rewarded. Therefore, the construct of over-
reward in equity has doubtful practical relevance.
 The weakest element of equity theory is its analysis of the process by which
individuals choose comparison with others. The process by which
individuals decide whom to compare themselves with is not clear.
 Equity theory is not a complete theory of motivation but deals only with one
particulars aspect of motivation, i.e., its limited focus is on equity.
Implications of equity theory

 Employees measure the totals of their inputs and outcomes. This means a
working parent may accept lower monetary compensation in return for more
flexible working hours.
 Different employees ascribe different personal values to inputs and
outcomes. Thus, two employees of equal experience and qualification
performing the same work for the same pay may have quite different
perceptions of the fairness of the deal.
 Employees are able to adjust for purchasing power and local market
conditions.
 Although it may be acceptable for more senior staff to receive higher
compensation, there are limits to the balance of the scales of equity, and
employees can find excessive executive pay demotivating.
 Staff perceptions of inputs and outcomes of themselves and others may be
incorrect, and perceptions need to be managed effectively.

Goal Setting Theory of Motivation

Goal-setting theory is an organizational psychology theory. (It’s also sometimes

called the goal setting theory of motivation).

According to this theory, goals that are clear, specific, and challenging are more
motivating than vague goals or easy goals. And when employees are more
motivated, they’re more successful in hitting their goals.

This theory states that goal setting is essentially linked to task performance.
The 5 principles of goal-setting theory

 Clarity
According to this theory, clarity around goal orientation is a must. The
more clarity there is when setting a goal with/for an employee, the
less of a chance there is for a miscommunication or misunderstanding.
This then leads to higher levels of success.
 Challenge
Goal difficulty also ties to the effectiveness of goal setting. When goal
attainment presents a challenge, it leads to a higher level of motivation
which, in turn, leads to a higher chance of success. Or, in other words,
challenging goals (or difficult goals) are more effective.
 Commitment
Employees need to have a certain level of buy-in and goal
commitment. If they’re not committed, they’re not going to have the
follow-through necessary to succeed — and as a result, they won’t hit
their goal.
 Feedback
In order for employees to successfully hit their goals, they need
regular feedback. That includes feedback on their progress, what
they’re doing well, and where they can improve.
 Task complexity
If a goal feels too complex or overwhelming, it can negatively impact
motivation. Instead, leaders should break down large goals into
smaller, more manageable tasks. As employees complete each small
task, it will deliver a boost of motivation. And that will ultimately
help them progress towards the larger goal.
Merits of goal-setting theory

 Higher levels of engagement. This framework can help employees hit

their goals. That success can lead to higher levels of employee
engagement and job satisfaction.
 Higher levels of performance. When employees regularly hit their
goals, their performance and productivity improves. Employees may
also become more effective at hitting goals within their assigned
timeframe.
 Better adherence to deadlines and metrics. Goal-setting theory
encourages measurable goals. This can help employees improve at
getting things done within specified timeframes. It can also help
employees better adhere to defined metrics.
 Wide application. Goal-setting theory can be used for a variety of goal
types. For example, you can apply it successfully to personal goals,
individual goals, team goals, learning goals, or an achievement goal.
 Supports a feedback culture. Goal-setting theory supports a culture of
feedback. This gives employees the insights they need to continually
improve.
 Leads to self-efficacy. When employees regularly hit their goals, they
gain confidence. This confidence leads to self-efficacy and better self-
regulation.
 Limitations of Goal Setting Theory
 Negative impact on performance relationship. According to goal
setting theory, difficult goals inspire higher performance. But there’s a
limit to that. If a goal or complex task is outside of an employee’s
skill set, that goal could prove too difficult. This can negatively
impact task motivation—and ultimately, cause performance to drop.
 Misalignment. If there is a misalignment between the employee’s
goals and the organization’s goals, goal-setting theory may not be as
effective.
 Unethical behavior. If goals are too difficult or complex, it can have a
negative impact on employees’ decision making. In an effort to hit
their goal, they may engage in unethical, risky, or questionable
behavior.
 At times, the organizational goals are in conflict with the managerial
goals. Goal conflict has a detrimental effect on the performance if it
motivates incompatible action drift.
 Very difficult and complex goals stimulate riskier behavior.
 If the employee lacks skills and competencies to perform actions
essential for goal, then the goal-setting can fail and lead to
undermining of performance.
 There is no evidence to prove that goal-setting improves job
satisfaction.
 It may have unintended and negative consequences, such as creating
stress, anxiety, and frustration for employees who fail to achieve their
goals, or inducing unethical or counterproductive behaviors.

Implication of goal setting theory for a manager

 Provide clarity, motivation, measurement, accountability, and a sense of

achievement. They provide a clear roadmap for where one wants to go and
what one wants to achieve.
 By setting specific goals, individuals and teams can stay focused and
motivated on what matters most, allowing them to work towards their
desired outcomes with a sense of purpose and direction