MODULE 8 MOTIVATION IN INDUSTRY

DEFINITION:
Motivation in industrial management
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 behaviour
can be - desire for money & success.
It is easy to say that we must increase the motivation of the employees, but unless we
know precisely what factors constitute motivation in this specific instance, we shall be unable to
change anything.

Human motivation is most complex. We seldom behave or respond to a particular

situation because of a single motive. We are driven by a variety of needs and desires, some
complimentary and others conflicting. Although we do not fully understand our motivational
structure, we do know, from psychological research, quite a bit about the forces that drives us.

It is the job of industrial and organizational psychologists to determine what these various
motivations are and how jobs and working conditions can be designed to satisfy them.

What is the importance of motivation in industry?

Motivated employees put in their maximum effort for achieving organizational goals.
Motivation improves the work performance by bridging the gap between the ability and
willingness to work. Better performance results in higher productivity and consequently lower
cost of production.

Theories of Motivation
This sets the context for the lecture and begins with the two categories of motivation theories.
Motivational theories can be divided into two categories, content and process theories.
Content theories assume that all individuals possess the same set of needs and therefore prescribe
the characteristics that ought to be present in jobs. These are: Maslow, Alderfer, Hertzberg etc.
Process theories stress the difference in people’s needs and focus on the cognitive processes that
create these differences. These are: Goal setting, Expectancy etc.
1) Abraham Maslow’s “Need Hierarchy Theory”:
One of the most widely mentioned theories of motivation is the hierarchy of needs theory put forth
by psychologist Abraham Maslow. Maslow saw human needs in the form of a hierarchy, ascending
from the lowest to the highest, and he concluded that when one set of needs is satisfied, this kind
of need ceases to be a motivator.
As per his theory these needs are:
(i) Physiological needs:
These are important needs for sustaining the human life. Food, water, warmth, shelter, sleep,
medicine and education are the basic physiological needs which fall in the primary list of need
satisfaction. Maslow was of an opinion that until these needs were satisfied to a degree to maintain
life, no other motivating factors can work.
(ii) Security or Safety needs:
These are the needs to be free of physical danger and of the fear of losing a job, property, food or
shelter. It also includes protection against any emotional harm.
(iii) Social needs:
Since people are social beings, they need to belong and be accepted by others. People try to satisfy
their need for affection, acceptance and friendship.
(iv) Esteem needs:
According to Maslow, once people begin to satisfy their need to belong, they tend to want to be
held in esteem both by themselves and by others. This kind of need produces such satisfaction as
power, prestige status and self-confidence. It includes both internal esteem factors like self-respect,
autonomy and achievements and external esteem factors such as states, recognition and attention.
(v) Need for self-actualization:
Maslow regards this as the highest need in his hierarchy. It is the drive to become what one is
capable of becoming; it includes growth, achieving one’s potential and self-fulfillment. It is to
maximize one’s potential and to accomplish something.

As each of these needs is substantially satisfied, the next need becomes dominant. From the
standpoint of motivation, the theory would say that although no need is ever fully gratified, a
substantially satisfied need no longer motivates. So if you want to motivate someone, you need to
understand what level of the hierarchy that person is on and focus on satisfying those needs or
needs above that level.
Maslow’s need theory has received wide recognition, particularly among practicing managers.
This can be attributed to the theory’s intuitive logic and ease of understanding. However, research
does not validate this theory. Maslow provided no empirical evidence and other several studies
that sought to validate the theory found no support for it.

McClelland's Human Motivation Theory

(https://www.mindtools.com/pages/article/human-motivation)

In the early 1940s, Abraham Maslow created his theory of needs . This identified the basic needs
that human beings have, in order of their importance: physiological needs, safety needs, and the
needs for belonging, self-esteem and "self-actualization".
Later, David McClelland built on this work in his 1961 book, "The Achieving Society." He
identified three motivators that he believed we all have: a need for achievement, a need for
affiliation, and a need for power. People will have different characteristics depending on their
dominant motivator.

According to McClelland, these motivators are learned (which is why this theory is sometimes
called the Learned Needs Theory).

McClelland says that, regardless of our gender, culture, or age, we all have three motivating
drivers, and one of these will be our dominant motivating driver. This dominant motivator is
largely dependent on our culture and life experiences.

These characteristics are as follows:

Dominant
Characteristics of This Person
Motivator

Has a strong need to set and accomplish challenging goals.

Takes calculated risks to accomplish their goals.
Likes to receive regular feedback on their progress and
achievements.
Achievement Often likes to work alone.

Wants to belong to the group.

Wants to be liked, and will often go along with whatever the rest
of the group wants to do.
Favors collaboration over competition.
Affiliation Doesn't like high risk or uncertainty.

Wants to control and influence others.

Likes to win arguments.
Enjoys competition and winning.
Power Enjoys status and recognition.

Achievement
People motivated by achievement need challenging, but not impossible, projects. They thrive on
overcoming difficult problems or situations, so make sure you keep them engaged this way.
People motivated by achievement work very effectively either alone or with other high
achievers.
When providing feedback, give achievers a fair and balanced appraisal. They want to know what
they're doing right – and wrong – so that they can improve.
Affiliation
People motivated by affiliation work best in a group environment, so try to integrate them with a
team (versus working alone) whenever possible. They also don't like uncertainty and risk.
Therefore, when assigning projects or tasks, save the risky ones for other people.
When providing feedback to these people, be personal. It's still important to give balanced
feedback, but if you start your appraisal by emphasizing their good working relationship and
your trust in them, they'll likely be more open to what you say. Remember that these people
often don't want to stand out, so it might be best to praise them in private rather than in front of
others.

Power
Those with a high need for power work best when they're in charge. Because they enjoy
competition, they do well with goal-oriented projects or tasks. They may also be very effective
in negotiations or in situations in which another party must be convinced of an idea or goal.
When providing feedback, be direct with these team members. And keep them motivated by
helping them further their career goals .

4. The ERG Theory of Work Motivation

Clayton Alderfer suggests three basic human needs: Existence needs, Relatedness needs,
and Growth needs.

Existence needs are the lowest level needs and are concerned with physical survival.
They include the obvious needs for food, water, shelter, and physical safety. An employer can
satisfy these needs through salary, fringe benefits, a safe working environment and some
measure of job security. Existence needs relate to tangible environmental goals such as being
able to buy food and shelter.

Relatedness needs involve interactions with other people and the satisfaction they can
bring in the form of emotional support, respect, recognition, and a sense of belonging. These
needs can be satisfied on the job by any social relationships with co-workers and off the job by
friends and family.

Growth needs focus on the self and include the need for personal growth and
development, which can be satisfied only by using one’s capabilities to the fullest. This
conception includes Maslow’s self-esteem and self-actualization needs. Both aspects-esteem and
growth- must be satisfied. A job can provide satisfaction of the growth needs if it involves
challenge, autonomy, and creativity.

The ERG needs are not rigidly hierarchical. More than one of the ERG needs can operate
at the same time. Satisfaction of one need does not lead automatically to the emergence of a
higher need.

Frustration of one of Alderfer’s higher needs (Relatedness and Growth) may lead to a
reversion to a lower need. For example, in Alderfer’s theory, if a worker’s relatedness need is not
being satisfied, he or she may give up on it and focus instead on the existence needs. In practical
terms, this means that the worker may demand higher pay or fringe benefits as compensation for
failing to satisfy the relatedness needs.

Alderfer suggest that satisfaction of a need may increase in its intensity. If, for example, a
job affords a great deal of challenge, autonomy, and creativity, the growth needs, instead of
being fulfilled, might become stronger, necessitating additional autonomy, and challenge for
satisfaction.
Comparing Alderfer and Maslow

5. The Motivator Hygiene Theory of Motivation and Job Satisfaction

The motivator- hygiene theory, combining motivation and job satisfaction, was proposed
by Frederick Herzberg in 1959. Although controversial, the theory is a simple one and has
stimulated vast amounts of research yielding important implications for the structure of some jobs.
It has also had ramifications on actual job design the way in which various jobs are performed
(Herzberg, 1966, 1974).
The premise of the motivator-hygiene theory is that lower level needs have generally been
satisfied in contemporary society. Where they have not, job dissatisfaction is the result. However,
the reverse is not true; the fulfilment of basic needs does not produce job satisfaction. Only higher
order needs such as self- actualization are capable of producing satisfaction. But, failure to find
self-actualization in a job does not necessarily lead to dissatisfaction.

Thus, there are two sets of needs: those that produce job satisfaction and those that produce
job dissatisfaction. They are separate; the presence or absence of one set of needs does not produce
the opposite condition. Herzberg calls the factors that produce job satisfaction motivator needs
they motivate the worker to the highest level of performance. These motivators are an integral part
of the work itself and include the nature of the work and the person's sense of achievement, level
of responsibility and personal development and advancement. The motivator needs can be satisfied
only by stimulating, challenging and absorbing work.
The factors that produce job dissatisfaction are the hygiene (or maintenance) needs. They
have little power to produce satisfaction. They have nothing to do with the nature of the work itself
but rather involve features of the work environment such as company policy and administrative
practices, type of super vision, interpersonal relations, company benefits and working conditions.
In Herzberg's theory, hygiene needs must be satisfied before attention is paid to motivator
needs. It is important to remember, however, that satisfaction of hygiene needs will not produce
job satisfaction, merely an absence of dissatisfaction.
 Herzberg's theory is controversial. Although it has been influential in the world of work
and has led to the redesign of many jobs, it has also been criticized. Research by industrial
psychologists both supports and contradicts the theory, but overall its scientific validity is low
(Dunnette, Campbell, & Hakel, 1967, Miner, 1984).
The primary criticism of Herzberg’s theory is directed against the alleged mutual
independence of the two factors or needs, motivator and hygiene. In Herzberg’s view, only
motivator needs can produce job satisfaction and only hygiene needs can produce job
dissatisfaction. Critics suggest that some of Herzberg's hygiene factors for example, a pay raise or
praise from a supervisor could also act as motivators because they provide recognition for
achievement. And, as we discussed, achievement is a motivator need. It is possible, therefore, that
the distinction between motivator and hygiene factors is not as rigid as Herzberg indicated. Some
aspects of the work environment may serve as motivators in addition to the intrinsic aspects of the
job.
Despite this criticism, Herzberg's theory has helped to focus interest on the importance of the
intrinsic aspects of the job and their ability to motivate workers. It also spawned the concept of job
enrichment.
JOB ENRICHMENT
Because so much of a person's satisfaction and motivation derive from the nature of the
work, it follows that a job could be redesigned to maximize the motivator factors. This effort,
known as job enrichment, has been a major impact of Herzberg's theory.
Herzberg suggests the following ways of enriching a job:
1. Remove some of the controls over employees and increase their personal accountability or
responsibility for their own work.
2. Provide employees with complete or natural units of work where possible. For example,
instead of having them make one component of a unit; let them produce the whole unit.
3. Give employees additional authority and freedom in their work.
4. Provide reports on production on a regular basis directly to the workers instead of to their
supervisors.
5. Encourage workers to take on new and difficult tasks.
6. Assign highly specialized tasks so that workers can become expert in a particular task or
operation.

What is an example of Herzberg's two-factor theory?

This concept puts forward two factors that motivate employees: job satisfaction and job
dissatisfaction. While these might seem like opposites, they work together in a cycle. For
example, when an employee is unhappy with their job, they may exhibit low performance
or consider quitting the company.

Why is Herzberg theory important?

Understanding Herzberg's theory recognises the intrinsic satisfaction that can be
obtained from the work itself. It draws attention to job design and makes managers
aware that problems of motivation may not necessarily be directly associated with the
work. Problems can often be external to the job.

What is implication of the Herzberg two-factor theory at the work setting?

The Two-Factor theory implies that the managers or supervisors must stress upon
guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction.
Also, the managers must make sure that the job is stimulating and rewarding so that the
employees are motivated to work and perform harder and better.
 7. “Theory X and Theory Y” of Douglas McGregor:

McGregor, in his book “The Human side of Enterprise” states that people inside the organization
can be managed in two ways. The first is basically negative, which falls under the category X and
the other is basically positive, which falls under the category Y. After viewing the way in which
the manager dealt with employees, McGregor concluded that a manager’s view of the nature of
human beings is based on a certain grouping of assumptions and that he or she tends to mold his
or her behavior towards subordinates according to these assumptions.
Under the assumptions of theory X:
• Employees inherently do not like work and whenever possible, will attempt to avoid it.
• Because employees dislike work, they have to be forced, coerced or threatened with punishment
to achieve goals.
• Employees avoid responsibilities and do not work till formal directions are issued.
• Most workers place a greater importance on security over all other factors and display little
ambition.
In contrast under the assumptions of theory Y:
• Physical and mental effort at work is as natural as rest or play.
• People do exercise self-control and self-direction and if they are committed to those goals.
• Average human beings are willing to take responsibility and exercise imagination, ingenuity and
creativity in solving the problems of the organization.

That the way the things are organized, the average human being’s brainpower is only partly used.
On analysis of the assumptions it can be detected that theory X assumes that lower-order needs
dominate individuals and theory Y assumes that higher-order needs dominate individuals. An
organization that is run on Theory X lines tends to be authoritarian in nature, the word
“authoritarian” suggests such ideas as the “power to enforce obedience” and the “right to
command.” In contrast Theory Y organizations can be described as “participative”, where the aims
of the organization and of the individuals in it are integrated; individuals can achieve their own
goals best by directing their efforts towards the success of the organization.
However, this theory has been criticized widely for generalization of work and human behavior.
 1. THE EXPECTANCY THEORY OF MOTIVATION

The expectancy theory, originated by Victor Vroom, states that people make choices based
on their perceived expectancy that certain rewards will follow if they behave in a certain way. In
the work situation, this means that people will work hard if they expect this effort to lead to
desirable rewards such as higher pay or promotion. The expectancy theory seems to agree with
personal experience and common sense, the higher our expectancy of receiving some
reward-whether good grade or a promotion - the harder we shall work for it.

Who proposed expectancy theory?

Author. In 1964, Victor H. Vroom developed the expectancy theory through his study of the
motivations behind decision-making. This theory is relevant to the study of management.

What is expectancy theory?

Expectancy theory suggests that individuals are motivated to perform if they know that their
extra performance is recognized and rewarded (Vroom, 1964). Consequently, companies
using performance-based pay can expect improvements. Performance-based pay can link
rewards to the amount of products employees produced.

2. What is Porter and Lawler expectancy model?

Porter and Lawler extended Vroom's work by examining more closely the traits and perceptions
of the individual and the nature and impact of rewards on motivation. The Porter and Lawler
model is a process model that explains the conditions and processes (contingencies) by
which motivation to work takes place.

The Porter and Lawler theory of motivation is based on the assumption that rewards cause
satisfaction and that sometimes performance produces reward. They hypothesize that the
relationship between satisfaction and performance is linked by another variable rewards. They see
good- performance leading to reward which lead to satisfaction. It is a multi-variable model and
explains the complex of relationship among motivation, performance and satisfaction.

They argue that satisfaction does not always lead to performance. Rather is reverse is true, because
people can become complacent after having achieved satisfaction once. On the other hand,
performance can lead to satisfaction if the reward systems are effective

2. Porter and Lawler Theory of Motivation – Rewards

https://www.papertyari.com/general-awareness/management/porter-and-lawler-theory-of-
motivation/

The theory proposed two types of reward:

1. Intrinsic Rewards: Intrinsic rewards are given to an individual by himself for good
performance. They include feelings of accomplishment and satisfaction of higher-level
needs as defined by Maslow. Intrinsic reward are directly related to good performance only
if the job structure is varied and challenging so an individual can reward himself if he feels
he has performed well
2. Extrinsic Rewards: Extrinsic rewards are given by the organization and satisfy mainly
lower-level needs. They include such things as pay, promotion, status, and job security.
extrinsic rewards are weekly connection to performance

In the model, rewards are linked indirectly to satisfaction through perceived equitable rewards.
This variable refers to the amount of rewards an individual feels he should receive as a result of
his performance. This variable can also be expanded to include the amount of rewards an individual
feels should be attached to a particular position within the organization. Therefore, Porter and
Lawler view satisfaction as deficiency measure. Satisfaction is determined by the difference
between actual rewards and perceived equitable rewards. If actual reward exceeds perceived
rewards, then it results in satisfaction. If opposite occurs, it results in dissatisfaction. The degree
to which a person is either satisfied or dissatisfied depends on the size of the difference between
the actual and perceived equitable rewards

3.THE GOAL-SETTING THEORY OF MOTIVATION

Developed by Edwin Locke, goal-setting theory also has a common-sense appeal and is
clearly relevant to the world of work. Locke argues that our primary motivation in a work situation
can be defined in terms of our desire to achieve a particular goal. The goal represents what we
intend to do at a given time in the future. For example, we may have as a goal graduating from
college with honours or achieving the highest sales recorded in the company or getting a pay raise
to buy a new house (Locke, 1968).
Goals are important in any endeavour, motivating and guiding our behavior so that we
perform in the most effective way. Studies of work behavior have shown how goals influence our
motivation. For example, having goals results in higher performance than not having goals.
Specific goals are more motivating than general goals. Goals that are difficult to obtain are more
motivating than easy goals. On the other hand, goals that are so difficult as to seem impossible to
achieve are worse than having no goals at all as far as motivation and performance are concerned.
Goals facilitate job performance in four ways: they direct attention and action, they
mobilize energy and effort, they increase persistence, and they motivate the development of the
behaviors that are appropriate and necessary to attain the goals.
The goal-setting theory is probably the most thoroughly researched of all the motivational
theories we have discussed. The evidence is highly supportive. In case after case, goal-setting has
been found to produce substantial increases in employee output. Further, the theory is high in both
scientific validity and usefulness on the job (Hunter & Schmidt, 1983; Locke, et al., END 1981;
Miner, 1984b).

We know that "SMART" stands for Specific, Measurable, Attainable, Relevant, and Time-
bound. But are these the only factors to consider if we want to achieve our goals?

Locke and Latham's Five Principles

According to Locke and Latham, there are five goal setting principles that can improve our
chances of success:

1. Clarity.

2. Challenge.

3. Commitment.

4. Feedback.

1. Setting Clear Goals

When your goals are clear, you know what you're trying to achieve. You can also measure
results accurately, and you know which behaviors to reward. This is why SMART is such a
useful mnemonic.
2. Setting Challenging Goals

People are often motivated by challenging goals, however it's important not to set a goal that is
so challenging it can't be achieved.

3. Securing Team Commitment

To be effective, your team must understand and agree to the goals – team members are more
likely to "buy into" a goal if they have been involved in setting it.

This doesn't mean that you have to negotiate every goal with your team members and secure
their approval. They're likely to commit to it as long as they believe that the goal is achievable, it
is consistent with the company's ambitions, and the person assigning it is credible.

4. Gaining Feedback

In addition to selecting the right goals, you should also listen to feedback, so that you can gauge
how well you and your team are progressing.

Feedback gives you the opportunity to clarify people's expectations and adjust the difficulty of
their goals.

Keep in mind that feedback doesn't have to come from other people. You can check how well
you're doing by simply measuring your own progress.

Summary /Key Points

Goal setting is something that many of us recognize as a vital part of achieving success.

By understanding goal-setting theory, you can apply Locke and Latham's principles to your
goals. Their research confirms the usefulness of SMART goal setting, and their theory continues
to influence the way that we measure performance today.

To use this tool, set clear, challenging goals and commit yourself to achieving them. Be sure to
provide feedback to others on their performance towards achieving their goals, and reflect on
your own progress as well. Also, consider the complexity of the task, and break your goals down
into smaller chunks, where appropriate.

If you follow these simple rules, your goal setting will be much more successful, and your
overall performance will improve.
 What you get by achieving your goals is not as important as what you become by
achieving your goals.
– Michelangelo Buonarroti, Renaissance artist

5. Equity Theory – Keeping Employees Motivated

https://expertprogrammanagement.com/2017/06/equity-theory/

Everyone in the workplace is motivated by something. This motivation could be external

in nature, such a money, and status, or internal, such as a desire to do a good job. Leaders and
managers have sought to understand theories of motivation and then test them in the workplace to
increase the productivity and effectiveness of their workforce.

Adam’s Equity Theory, also known as the Equity Theory of Motivation, was developed in 1963
by John Stacey Adams, a workplace behavioral psychologist.

Equity Theory is based on the idea that individuals are motivated by fairness. In simple terms,
equity theory states that if an individual identifies an inequity between themselves and a peer,
they will adjust the work they do to make the situation fair in their eyes. As an example of equity
theory, if an employee learns that a peer doing exactly the same job as them is earning more
money, then they may choose to do less work, thus creating fairness in their eyes.

Extrapolating from this, Adam’s Equity Theory tells us that the higher an individual’s
perception of equity (fairness), then the more motivated they will be. Conversely, an individual
will be demotivated if they perceive unfairness.

Equity Theory Examples

You can identify Equity Theory in the workplace by listening to the phrases that people use in
conversation. Most commonly an individual will compare the role that they do to someone who
is getting paid more than they are. Equity theory is in play when individuals say things like:

• “Andy earns more than I do, but doesn’t do nearly as much work!”

• “I get paid a lot less than Andy, but this place would fall apart without me!”

• “Did you hear that the new guy earns $500 more and works fewer hours! How is that fair?”

As you can see, in each of these examples someone is comparing their own compensation and
effort against someone else’s. Although comparing compensation is the most common
comparator, other typical forms of comparison include comparing learning opportunities or
comparing opportunities to work from home.
Equity Theory Summary

In essence, the Equity Theory of Motivation proposes that high levels of employee motivation in
the workplace can only be achieved when each employee perceives their treatment to be fair
relative to others. Employees will compare themselves to other groups both inside and outside of
the organization. In doing so, they will compare the total of all inputs against the total of all
outputs. If they perceive unfairness they will adjust their inputs to compensate, working more or
working less, depending on if their situation is positive or negative relative to the group or
person being compared.

References:

1.Expectancy theory - Wikipedia

https://en.wikipedia.org › wiki › Expectancy_theory

2.Porter and Lawler Theory of Motivation

https://www.papertyari.com/general-awareness/management/porter-and-lawler-theory-of-
motivation/

3.Equity Theory – Keeping Employees Motivated

https://expertprogrammanagement.com/2017/06/equity-theory/