𝒜𝒹𝓋𝑒𝓃𝓉𝓊𝓇𝑒 𝒶𝓈 𝒶 𝒸𝓊𝓁𝓉𝓊𝓇𝑒

Motivation &
Culture
(MBA-7000)

Session 03

Lecturer : Ragukumar
1 S.T
Focus Motivation and Culture

Motivation and Culture

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Motivation

Motivation is the processes that account for an individual’s intensity, direction, and persistence
of effort toward attaining a goal.

Intensity describes how hard a person tries. This is the element most of us focus on when we
talk about motivation. However, high intensity is unlikely to lead to favorable job performance
outcomes unless the effort is channeled in a direction that benefits the organization.
Therefore, we consider the quality of effort as well as its intensity. Effort directed toward, and
consistent with, the organization’s goals is the kind of effort we should be seeking. Finally,
motivation has a persistence dimension. This measures how long a person can maintain effort.
Motivated individuals stay with a task long enough to achieve
their goals.

Motivation is the creation of incentives and working environments that enable people to
perform to the best of their ability. The aim of motivation is to engage people with the work
they are doing in order to achieve the best possible outcomes for individuals and the
organization as a whole -Chartered Management Institute

Employee engagement - individual emotional and cognitive motivation, particularly a focused,

intense, persistent, and purposive effort toward work-related goals 3
Was this the night Trump
decided to run?

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Content Theories of Motivation Process Theories of Motivation
Content theories of motivation attempt Process theories of motivation, or
to explain those specific things that extrinsic theories, attempt to identify
actually motivate the individual at work. the relationships among the dynamic
variables that make up motivation and
These theories are concerned with the actions required to influence
identifying people’s needs and their behaviour and actions.
relative strengths, and the goals they
pursue in order to satisfy these needs. These theories are concerned more with
the actual process of motivation and
Content theories place emphasis on the how behavior is initiated, directed and
nature of needs and what motivates. sustained.

● Maslow’s hierarchy of needs theory ● Expectancy-based models – Vroom,

● Alderfer’s modified need hierarchy
model
● Nohria’s four-drives model of
motivation
● Herzberg’s two-factor theory
● McClelland’s achievement motivation
theory.
and Porter and Lawler
● Equity theory – Adams
● Goal theory – Locke
● Attribution theory – Heider and
Kelley
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Maslow’s Hierarchy of Needs
The most widely-known theory of motivation is
probably Abraham Maslow’s hierarchy of
needs theory.Maslow was a psychologist who
proposed that within every person is a
hierarchy of five needs:
1. Physiological needs: A person’s needs for
food, drink, shelter, sex, and other physical
requirements.
2. Safety needs: A person’s needs for security
and protection from physical and emotional
harm as well as assurance that physical needs
will continue to be met.
3. Social needs: A person’s needs for affection,
belongingness, acceptance, and friendship.
4. Esteem needs: A person’s needs for internal
esteem factors such as self-respect, autonomy,
and achievement and external esteem factors
such as status, recognition, and attention.
5. Self-actualization needs: A person’s needs
for growth, achieving one’s potential, and self-
fulfillment; the drive to become what one is
capable of becoming..

Each level in the needs hierarchy must be

substantially satisfied before the next need becomes dominant. An individual moves up the needs
hierarchy from one level to the next. In addition, Maslow separated the five needs into higher and
lower levels. Physiological and safety needs were considered lower-order needs; social, esteem,
and self-actualization needs were considered higher-order needs. Lower-order needs are
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predominantly satisfied externally while higher-order needs are satisfied internally.
A critique on Maslow’s Hierarchy of Needs

Even though it is widely known, Maslow’s needs hierarchy theory was challenged
by motivation experts since long ago. The main flaw is that not everyone has the same needs
hierarchy. Some people place social relations or status at the top of their personal hierarchy
whereas others view personal development and growth above social relations or status.

This variation occurs because employee needs are strongly influenced by self-concept, personal
values, and personality. People have different hierarchies of values, so they also have parallel
differences in their needs hierarchies. If your most important values lean toward stimulation
and self-direction, for example, you probably pay more attention to self-actualization needs.

Our personal values hierarchy can change over time, so our needs hierarchy also changes over
time.

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Four-Drive Theory of Motivation
A motivation theory based on the innate drives to acquire, bond, comprehend, and defend
that incorporates both emotions and rationality [Paul Lawrence and Nitin Nohria]

All drives are hardwired in our brains and exist

in all human beings. They are also independent
of one another; there is no hierarchy of drives.

Three of the drives are proactive—we regularly

try to fulfill them. Therefore, need “fulfillment”
is brief and ongoing. Only the drive to defend
is reactive—it is triggered by threat. 10
Herzberg’s Two-Factor Theory

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Content Theories of Motivation

Maslow’s Alderfer’s Herzberg’s McClelland’s

Need Hierarchy ERG Theory Two-Factor Theory Learned Needs

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Extrinsic and Intrinsic Motivation
A programmer in search of a new job
learning a new framework
Extrinsic motivation Related to
tangible rewards such as salary,
promotion, working conditions
and fringe benefits. These
tangible rewards are often
determined at the
organizational level and may be
outside the control of
individual managers.
Intrinsic motivation Related to
psychological rewards such as
achieving appreciation, positive
recognition and being given the
opportunity to use one’s ability.
These psychological rewards can
usually be determined by the
actions and behaviour of
individual managers.
A programmer driven by mastery
learning a new framework
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Expectancy Theory of Motivation

A theory of motivation based on the idea that people prefer certain outcomes from their
behaviour over others. Motivation is a function of the relationship between effort, level of
performance and rewards related to performance.

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Application of Expectancy Theory

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??

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Equity Theory
A theory of motivation that focuses on people’s feelings of how fairly they have been treated
in comparison with the treatment received by others.

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Debating point - DOES EQUITY MOTIVATE MORE THAN EQUALITY?

It seems obvious that employees with higher performance, skills, or other contributions to the
organization should receive more generous pay and other rewards. Increasing the pay
differential (wage dispersion) between high and low contributors should boost employee
motivation to achieve a higher standard of performance. It should also increase company
performance by motivating the top performers to stay and the bottom performers to leave.
A large wage dispersion is also consistent with justice and fairness. Differentiating rewards
based on employee performance, skills, and other forms of contribution is consistent with the
principle of meritocracy. It is also consistent with the principle of justice, which states that those
who contribute more should receive more in return. Furthermore, performance-based pay is
one of the pillars of human capital.

But workplaces that have large wage dispersions might not be receiving the performance
dividends they expect. Several (but not all) studies have found that sports teams with relatively
small pay differences among team members perform better than sport teams with relatively
high pay differences. Teams that pay huge salaries or bonuses to stars do not score more points
or win more games. Also, turnover among players and managers tends to increase with the size
of the wage dispersion. One recent study extended these observations to all industries.
Companies that have a higher dispersion of wage increases (larger increases to higher-paid staff)
perform worse than companies with an equal dispersion of wage increases. Another study
reported that information technology companies with larger salary differences among top
management teams had worse shareholder returns and market-to-book value compared to IT
companies with less pay inequality. 18
Why would larger pay ranges undermine rather than enhance employee and organizational
performance?

One reason is that pay differences produce status differences, which can undermine
cooperation among employees. A second reason is that large pay differences might increase
(rather than decrease) feelings of injustice. Most people think they are above average, so large
pay differences clearly place many employees below their self-evaluations. Also, employees
tend to underestimate the contribution of higher-paid coworkers and assume those higher-paid
coworkers also receive other rewards (such as preferential treatment). In short, lower-paid
employees often believe higher-paid employees are overpaid, which reduces the lower-paid
workers’ motivation and performance.

Economic Policy Institute reported, that in 2020, CEOs of the top 350 U.S. firms made $24.2
million on average. The study also found that since 1978, CEO compensation has risen 1,322%,
while typical worker compensation has only grown by just 18%.

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(Source: CEO Today, 2019)
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Goal-Setting Theory

The proposition that specific goals increase performance and that

difficult goals, when accepted, result in higher performance than
do easy goals.

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Designing Motivating Jobs- Job Characteristics Model

JCM is a framework
for analyzing and
designing jobs that
identifies five
primary core job
dimensions, their
interrelationships,
and their impact on
outcomes

1. Skill variety, the degree to which a job requires a variety of activities so that an employee can use a
number of different skills and talents.
2. Task identity, the degree to which a job requires completion of a whole and identifiable piece of work.
3. Task significance, the degree to which a job has a substantial impact on the lives or work of other people.
4. Autonomy, the degree to which a job provides substantial freedom, independence, and discretion to the
individual in scheduling the work and determining the procedures to be used in carrying it out.
5. Feedback, the degree to which doing work activities required by a job results in an individual obtaining
direct and clear information about the effectiveness of his or her performance. 22
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Reinforcement Theory
Reinforcement theory says that behavior is a function of its consequences. Those
consequences that immediately follow a behavior and increase the probability that the
behavior will be repeated are called reinforcers.

Caution on using punishment- although punishment eliminates undesired behavior faster than
nonreinforcement, its effect is often temporary and may have unpleasant side effects, including
dysfunctional behavior such as workplace conflicts, absenteeism, and turnover.

Also take note although reinforcement is an important influence on work behavior, it isn’t the
only explanation for differences in employee motivation. 24
Organizational Culture
Organizational culture is a system of shared meaning held by members
that distinguishes the organization from other organizations. This system
is characterized by values, beliefs, and underlying assumptions that
serve several purposes.
Six primary characteristics seem to capture the essence of an organization’s culture:

1. Adaptability. The degree to which employees are encouraged to be innovative and flexible
as well as to take risks and experiment.
2. Detail orientation. The degree to which employees are expected to exhibit precision,
analysis, and attention to detail.
3. Results/outcome orientation. The degree to which management focuses on results or
outcomes rather than on the techniques and processes used to achieve them.
4. People/customer orientation. The degree to which management decisions consider the
effect of outcomes on people within and outside the organization.
5. Collaboration/team orientation. The degree to which work activities are organized around
teams rather than individuals.
6. Integrity. The degree to which people exhibit integrity and high ethical standards in their
work.

Barclays' Salz Review blames bank culture

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Edgar Schein’s - levels of culture

Schein suggests that the basic

assumptions are treated as the
essence – what culture really is –
and values and behaviours are
treated as observed manifestations
of the culture essence.

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Johnson and Scholes - cultural web

The Cultural Web identifies six interrelated elements of organizational culture that help to
make up what Johnson and Scholes call the "paradigm" – a self-consistent set of ideas and
beliefs which act as a filter, influencing how we perceive and make sense of things (i.e. The set
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of assumptions shared and taken for granted by the organization)
How organizational cultures form?

"Why Don’t We Try to Be India’s Most

Respected Company?“- HBR,2011)

The original culture derives from the founders’ philosophy and strongly influences hiring
criteria as the firm grows.
Socialization is the process that enables new employees to acquire the social knowledge and
necessary skills in order to adapt to the organization’s culture. The success of socialization
depends on the deliberateness of matching new employees’ values to those of the organization
in the selection process and on top management’s commitment to socialization programs.
Top managers’ actions signal what is valued, including what is acceptable behavior and what is
not, thus directly influencing the socialization process and the culture.
The culture then becomes linked and entrenched within the organizational structures and
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systems, and is perpetuated by leadership.
Types of organizational culture

Two well-known classifications of types of organizational culture are Competing Values

Framework and The Leader’s Guide to Corporate Culture published in Harvard Business Review.

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Types of organizational culture

Clan culture- A very friendly working

environment where people have a lot in
common and which strongly resembles a large
family. The leaders are viewed as mentors. The
organization is held together by loyalty and
tradition. There is a high level of engagement

Hierarchy culture -A highly formalized,

structured working environment. Procedures
determine what the people do. The leaders are
proud of the fact that they are good, efficiency-oriented coordinators and organizers.

Market culture- A result-oriented organization in which the greatest care focuses on completing
the work. The people are competitive and goal-focused. They are tough and demanding
emphasizes on winning [market share and market penetration]. Reputation and success are
important.

Adhocracy culture - A dynamic, entrepreneurial and creative working environment. People stick
their neck out and take risks. The leaders are viewed as innovators and risk takers. There is
commitment to experimentation and innovations. The emphasis is on trendsetting.
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The Global Context - Lewis’s model
With the wide range of national cultures
and regional variations, and a world of
rapidly globalizing business, Lewis draws
attention to the importance of
cross-cultural training and a generic
Model of cultural categorization. His model
classifies cultures under three main headings:
Linear-active people tend to be task-
orientated, highly organized planners who
complete action chains doing one thing at a
time. They prefer straightforward and direct
discussion, adhere to logic rather than emotion, have faith in rules and regulations, honour
written contracts and are process orientated.
Multi-active people are emotional, loquacious and impulsive, and attach great importance
to family, feelings and relationships. They like to do many things at the same time.
Relationships and connections are more important than products. They have limited respect
for authority, often procrastinate, are flexible and often change their plans.

Reactive people are listeners who rarely initiate action or discussion. They concentrate on
what is being said, listen before they leap and show respect. Reactives are introverts and
adept at non-verbal communications. Silence is regarded as a meaningful part of discourse.
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Smalltalk is not easy and lack of eye contact is typical.
The Global Context - Hofstede’s Framework
One of the most widely referenced approaches for analyzing variations among cultures was
done in the late 1970s by Geert Hofstede. Hofstede surveyed more than 116,000 IBM
employees in 40 countries about their work-related values and found that managers and
employees varied on five value dimensions of national culture:

Power distance- Power distance describes the degree to which people in a country accept that
power in institutions and organizations is distributed unequally. A high rating on power distance
means large inequalities of power and wealth exist and are tolerated in the culture, as in a class
or caste system that discourages upward mobility. A low power distance rating characterizes
societies that stress equality and opportunity.

Individualism versus collectivism- Individualism is the degree to which people prefer to act as
individuals rather than as members of groups and believe in an individual’s rights above all else.
Collectivism emphasizes a tight social framework in which people expect others in groups of
which they are a part to look after them and protect them.

Masculinity versus femininity- Hofstede’s construct of masculinity is the degree to which the
culture favors traditional masculine roles such as achievement, power, and control, as opposed
to viewing men and women as equals. A high masculinity rating indicates the culture has
separate roles for men and women, with men dominating the society. A high femininity
rating means the culture sees little differentiation between male and female roles and treats
women as the equals of men in all respects. 32
Uncertainty avoidance- The degree to which people in a country prefer structured over
unstructured situations defines their uncertainty avoidance. In cultures scoring high on
uncertainty avoidance, people have increased anxiety about uncertainty and ambiguity and use
laws and controls to reduce uncertainty. People in cultures low on uncertainty avoidance are
more accepting of ambiguity, are less rule oriented, take more risks, and accept change more
readily.

Long-term versus short-term orientation- This typology measures a society’s devotion to

traditional values. People in a culture with long-term orientation look to the future and value
thrift, persistence, and tradition. In a short-term orientation, people value the here and now;
they also accept change more readily and don’t see commitments as impediments to change

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The Global Context - Hofstede’s and the GLOBE Frameworks

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How Corporate Cultures Differ
Around the World
J. Yo-Jud Cheng and Boris Groysberg (HBR, 2020)

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Successful company cultures

These are company cultures that indicate growth and an upward dynamic, and they are
typically characterized by a high level of teamwork and engagement. Here is a brief outline of
seven distinct characteristics of successful company cultures.

1.A purpose-driven company culture: Successful company cultures are company cultures in
which employees have a clear sense of purpose; employees understand their immediate and
long-term goals.
2.Effective communication patterns: Effective communication patterns within successful
organizations have three main characteristics: clarity, courtesy, and proactivity.
3.A culture of feedback: Feedback is great for so many reasons and fostering a culture of
feedback is crucial to the success of every organization.
4.Embracing diversity: Cultural sensitivity is the awareness of practices and cultures that are
different from your own.
5.Teamwork: Creating, enhancing, and celebrating teamwork is at the heart of every successful
company culture.
6.Engagement and loyalty: Employee engagement is a hot topic today and raising employee
engagement has become one of the highest priorities for organizations around the world.
7.Growth and development: Successful company cultures always offer their employees
opportunities for growth, both in terms of training and in terms of their ability to grow as
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individuals or as teams — acquiring new skills and, as a result, new possibilities.
Building a culture that excels in customer service

(2013)
Note: Virgin America was later Acquired in 2016 and was slowly merged into Alaska Airlines (the main airline in the Alaska
Air Group along with regional airline Horizon Air) and was completed in 2018, with the Virgin brand being fully retired
37 by
June 2 2019 Perhaps a good topic to discuss in your marketing/strategy class
How to measure your company culture?

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Implications for Managers

o Realize that organizational culture is a complex, descriptive, and information-rich aspect of

organizations that has a major influence on important outcomes. It is relatively fixed in the
short term. To effect change, involve top management and strategize a long-term plan.

o Hire individuals whose values align with those of the organization (unless the objective is to
introduce a diversity of perspectives); these employees will tend to remain committed and
satisfied. Not surprisingly, “misfits” have considerably higher turnover rates.

o Understand that employees’ performance and socialization depend to a considerable degree

on their knowing what is valued and what is practiced in the organization. Train your
employees well and keep them informed of changes to their job roles.

o You can shape the culture of your work environment, sometimes as much as it shapes you.
All managers can do their part to create the desired culture by focusing on establishing
policies, practices, and procedures that reinforce the desired or emphasized values.

o Be aware that your company’s organizational culture may not be “transported” easily to
other countries. Understand the cultural relevance of your organization’s norms before
introducing new plans or initiatives overseas.

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