ORGANISATIONAL

BEHAVIOUR
Unit 6. Motivation & Job Satisfaction

Course Instructor: Niraj Karki (MBA, MPhil Scholar TU)

 ORGANISATIONAL BEHAVIOUR

Unit 6 – Motivation and Job Satisfaction

Concept of Motivation
Motivation theories – Maslow Hierarchy of needs theory, Hygiene factors and
motivators theory, McGregor’s Theory X and Theory Y, ERG motivation theory,
McClelland Achievement theory, Equity Theory, Victor Vroom Expectancy
theory, Reinforcement Theory & Goal Setting Theory.
Application of motivation theories
Motivation for Performance
Concept of job satisfaction, effects of job satisfaction on employees‘
performance
LH – 5
Concept of Motivation
Motivation is inner burning passion caused by need, wants and
desire which propels an individual to exert his physical and mental
energy to achieve desired objectives.
It is derived from Latin word “movere” which means “to move”.
The term 'motivation' is derived from the word 'motive' which means
the urge to do (or not to do) something.
Motives give direction to human behavior because they are directed
to satisfy particular needs or goals.
So, motivation refers to a process of inducing and stimulating an
individual to act in certain manner.
Concept of Motivation…

Motivation can be defined as stimulating, inspiring and inducing the

employees to perform to their best capacity.
Motivation is a psychological which means it cannot be forced on
employees. It comes automatically from inside the employees as it is
the willingness to do the work.
It is that intangible factor which inspires people to do something in
the best possible way.
To sum up, motivation is a psychological process of stimulating people
to work hard so as to attain the desired goals or objectives.
Concept of Motivation…

Motivation is a state of mind, filled with energy and enthusiasm

which drives a person to work in a certain way to achieve desired
goals.
Motivation is a force that pushes people to work with a high level of
commitment and focus, even if things are going against them.
From an organisation’s perspective, motivation implies encouraging
and urging the employees to perform to the best of their capabilities
so as to achieve the desired goals of the organisation.
In short, motivation is the driving force behind human actions.
 Definition of Motivation
According to Dale S. Beach, “Motivation can be defined as a willingness to
expend energy to achieve a goal or reward”.
According to M.D. Jucius, “Motivation, simply defined, is the act of stimulating
someone to take a desired course of action”.

Fred Luthans, “Motivation is a process that starts with a physiological or

psychological deficiency or needs that activates behaviour or a drive that is
aimed at a goal or incentive”.
Joe Kelly defined motivation as “Motivation is a process where by needs
instigate behavior directed towards the goals that can satisfy those needs”.

According to W. G. Scot, “Motivation means a process of stimulating people to

action to accomplish the desired goals”.
 Three Common Aspects of Motivation

Motivation = Effort + Direction + Persistence

Effort refers to how hard an individual tries to achieve his goals i.e. concerns
the magnitude or intensity of employee’s work related behaviour.

Direction refers to the area to which an individual focuses his efforts and the
quality of those focused effort i.e. quality of an employee’s work – that is the
investment of sustained effort in a direction that benefits the employer.

Persistence refers to the amount of time an individual can maintain the effort
to achieve a goal i.e. it concerns the sustained efforts employee manifested
in their work – related activities.
Nature or Characteristics of Motivation

Motivation is an internal feeling.

It is basically a psychological process.

Motivation produces goal directed behaviour.

Motivation is system-oriented i.e. motivation is interaction between

individual needs/wants/aspiration, organisational structure/design/facilities
and external environmental factors.

Motivation can be either positive or negative.

Motivation means bargaining (a perceived relationship) between effort (input) and
reward (output) i.e. the more the relationship is positive the more the level of
motivation will be.
Importance of Motivation

Helps in satisfying needs of the employees.

Change the negative attitude to positive attitude.
Reduce labour turnover.
Reduce absenteeism.
Helps in introducing changes.
Improves level of efficiency of employees.
Creating friendly and supportive relationship.
Techniques of Motivation

a. Money

b. Participation

c. Quality of Working Life (QWL)

d. Job Enrichment

e. Behavior Modification
a. Money

Most managers have tended to place money high on the scale of

motivators but behavioral scientist places it low. Probably neither
view is right.
However, money continues to be an important motivator. Attraction of
getting more money such as more pay, bonuses, allowances,
provision of insurance, etc. is a powerful motivator to employees for
high performance.
At least, it may keep the person from being dissatisfied.
b. Participation

Participation means the physical and mental involvement of people in

activities.
Participation encourages and permits contributions to decisions, goals
and plans along with suggestions for implementation.
It is also a means of recognition. Most people are motivated when
they are consulted on action affecting them.
c. Quality of Working Life (QWL)

The quality of working life is an attempt to integrate employee needs

and well-being with the intention of improving productivity, greater
employee involvement, and higher levels of job satisfaction through a
formal program.
It is more concerned with the overall climate of work.
It is a systematic approach to job designs and job enrichment
combined with a socio-technical systems approach to management.
d. Job Enrichment

The major assumption of this theory is that in order to motivate

employees the job must be designed to provide an opportunity for
achievement, recognition, responsibility, advancement and growth.
Job enrichment occurs by increasing a job’s range and depth.
Job range refers to the number of activities performed on the job
while job depth refers to the autonomy, responsibility, and discretion
or control over the job. Job enrichment vertically loads the job.
e. Behaviour Modification
Behavior modification is a management technique for applying the
concepts of reinforcement theory in organizational settings.
They emphasize that this technique focuses on observable and
measurable behavior rather than unobserved needs, attitudes or
goals.
In addition, behavior modification emphasizes permanent change
that can be caused only through reinforcement.
Generally, it uses positive reinforcement to motivate employees to
engage in desired behaviors.
Motivation Process
Motivation Process

Unsatisfied need: Motivation process begins when there is an unsatisfied need in

a human being.
Tension: The presence of unsatisfied need gives him tension.
Drive: This tension creates an urge of drive in the human being an he starts
looking for various alternatives to satisfy the drive.
Search Behavior: After searching for alternatives the human being starts behaving
according to chosen option.
Satisfied need: After behaving in a particular manner for a long time then he
evaluates that whether the need is satisfied or not.
Reduction of tension: After fulfilling the need the human being gets satisfied and
his tension gets reduced.
Types of Motivation
Positive Motivation
Positive motivation induces people to do work in the best possible
manner and to improve their performance.
Positive motivation is the type of motivation a person feels when he
expects a certain reward.
Example – when a Boss tells his subordinate, “if you achieve the target
on the time I will give you promotion.”
Negative Motivation
Negative incentives are those when purpose is to correct the
mistakes or faults of employees.
Negative incentive is generally resorted to when positive incentive
does not works and a psychological set back has to be given to
employees.
Example – when a Boss tells his subordinate, “if you do not achieve
the target on the time I will give you demotion.”
Monetary Incentives
Those incentives which satisfy the subordinates by providing them
rewards in terms of money.
Money has been recognised as a chief source of satisfying the needs
the people.
Money is also helpful the social needs by possessing various material
items.
Non-Monetary Incentives
Non-financial incentives which cannot be measured in terms of
money are under the category of “non-monetary incentives”.
Whenever a manager has to satisfy the psychological needs of the
subordinates, he makes use of non-financial incentives.
Types of non-financial incentives:
Security of service
Praise or recognition
Job enrichment
Promotion opportunities
Theories of Motivation
Historical Perspective
Maslow’s Hierarchy of Needs
Herzberg’s Motivator-Hygiene
Theory
Theory X and Theory Y
Alderfer’s ERG Theory
McClelland’s Three-Needs
Theory
Contemporary
Perspective
Adam’s Equity Theory
Vroom’s Expectancy Theory
Goal-Setting Theory
Reinforcement Theory
 A. Maslow’s
Hierarchy of Needs
B. Herzberg’s
Motivator-Hygiene
Theory
C. McClelland’s
Three-Needs
Theory
D. Alderfer’s ERG
Theory
E. Theory X and
Theory Y
H
Content-based i Theories - Content theories of motivation focus on the factors
which motivate behavior by rewarding or reinforcing it. In other words, what people
need in their livessthat motivates them.
t
A. Maslow’s Theory of Motivation

We each have a hierarchy of needs

that ranges from “lower” to “higher”.
As lower needs are fulfilled there is a
tendency for other, higher needs to
emerge.
Maslow’s theory maintains that a
person does not feel a higher need
until the needs of the current level
have been satisfied.
Maslow’s…
Physiological Motivation
Provide ample breaks for lunch, pay salaries that allow workers to
buy life’s essentials.
Safety Needs
Provide a working environment which is safe, relative job security
and freedom from threats.
Social Needs
Generate a feeling of acceptance, belonging by reinforcing team
dynamics.
Maslow’s…
Esteem Motivators
Recognize achievements, assign important projects, and provide
status to make employees feel valued and appreciated.
Self-actualization
Offer challenging and meaningful work assignments which enable
innovation, creativity and progress according to long-term goals.
Maslow’s… Limitations and Criticism
Maslow’s hierarchy sounds reasonable. However, there is little
evidence supports its strict hierarchy. Research has challenged the
order imposed by Maslow’s pyramid.
As an example, in some cultures, social needs are regarded higher
than any others.
Little evidence suggests that people satisfy exclusively one motivating
need at a time.
B. Fredrick Herzberg’s Theory of Motivation
Herzberg developed a unique and
exciting motivation theory.
His theory of motivation is also called
“Two Factor Theory” or “Dual Factor
Theory” or “Hygiene / Maintenance
Theory of Motivation”.
Focused attention on the work
environment to identify factors that
arouse in people either positive or
negative attitudes toward their work.
Herzberg’s…
Frederick Herzberg performed studies to determine which factors in
an employee’s work environment caused satisfaction or dissatisfaction.
He published his findings in the 1959 book “The Motivation to Work”.
Herzberg is among the first behavioral scientists to look at
motivating employees from different angles.
Herzberg’s…
His two-factor theory is based on the contents of interviews
conducted with 200 engineers and accountants.
In carrying the research, Herzberg and his associates asked
participants to describe job experiences that produced good and bad
feelings about their jobs.
From his finding, he found that there are two sets of factors, viz.
hygiene factors and motivating factors.
Dissati Satisfi
sfiers: ers:
Hygien Motivat
e ors
Factors
Hygiene Factors...
In Herzberg two factor theory, hygiene factors are also known as dissatisfiers
or maintenance factors. These are external to the job itself.

The presence of these factors does not motivate employees but the absence
of it causes dissatisfaction.

When these factors are adequate, people will not be dissatisfied but they
either be satisfied.

These factors are necessary to maintain a minimum level of need satisfaction.

They bring employees to zero levels of motivation from the negative
direction.
 Motivating Factors...
In Herzberg two factor theory, motivating factors are also known as motivators,
satisfiers or job content factors.

These factors are job-centered and relate directly to the job itself.

The presence of motivating factors causes a high level of motivation and job
satisfaction, whereas their absence does not cause high dissatisfaction.

Herzberg came to the conclusion that enriched jobs are the key to motivating
employees.

An employee is motivated to devote his/her best effort only when he or she finds
challenging jobs, the scope of innovation, freedom, growth and recognition of his
efforts and achievement from the management.
Fredrick Herzberg’s Theory of Motivation
Applying Two Factor Theory in Business Management
According to Herzberg, the job should have sufficient
amount of challenges to utilize ability of the
employees.
Employees who demonstrate increasing levels of ability should be
given increasing levels of responsibility.
If a job cannot be designed to use an employee’s full abilities, then the firm
should consider automating the task or replacing the employee with one
who has a lower level of skill.
If a person cannot be fully utilized, then there will be a motivation problem.
Two Factor … Limitations

Herzberg drew conclusions from a limited experiment covering only

engineers and accountants.

There may not be any direct cause and effect relationship between
satisfaction and performance.

In this theory, too much emphasis has been given to job enrichment.
However, on-the-job enrichment is not the only motivator but off-
the-job satisfaction of workers is also more important.
Two Factor … Limitations

It is difficult to differentiate job context factors from job content

factors because in many cases job context factors have elements of
positive satisfaction to jobholders.
Critics consider Herzberg’s two factor theory to be simplistic – what
motivates me may be a dissatisfier for someone else.
It is for individuals, not as a homogeneous group with one set of
wants and needs.
C. David McClelland’s Theory of Needs
David McClelland was an American Psychologist who
spent 30 years conducting research on motivation,
published books such as Human Motivation, The
Achieving Society and The Achievement Motive.
He sought to understand human nature and develop
tools to measure how people make choices.
He developed his theory which revolves around
three important aspects:
Achievement, Power & Affiliation
One trait is usually more dominant, but the others
are present in an individual as well.
McClelland’s…
This theory was developed in the 1960s and McClelland points out
that regardless of our age, sex, race or culture, all of us possess one of
these needs and are driven by it.
It is also known as Acquired Needs as McClelland puts forth that the
specific needs of an individual are acquired and shaped over time
through the experiences he has had in life.
For instance, people acquire or learn certain needs from their
culture, family, personal and occupational experiences and type of
organisation for which a person works.
McClelland’s…
This theory can be considered an extension of Maslow’s hierarchy of Needs.
McClelland’s theory takes Maslow’s theory and examines deeper into the
specific motivations that leads to self-actualization. According to the theory,
everyone has a primary need that drives their motivation for self-
actualization.
Every individual has these three types of motivational needs irrespective of
their demography, culture or wealth.
These motivation types are driven by real-life experiences and the views of
their ethos.
It impacts the workplace by helping managers identify motivators for people
within their organization to better reward and drive their workforce based on
each person's primary intrinsic needs.
McClelland’s…
McClelland affirms that we all have
three motivating drivers, which do not
depend on our gender or age. One of
these drives will be dominant in our
behavior. The dominant drive depends
on our life experiences.
The three motivators are:
Achievement (n Ach)
Affiliation (n Aff)
Power (n Pow)
a. Achievement
A need to accomplish and demonstrate own competence.
People with a high need for achievement prefer tasks that provide for
personal responsibility and results based on their own efforts.
They also prefer quick acknowledgment of their progress.
For instance, if you are a lawyer it is the need to win cases and be recognized,
if you are a painter it is the need to paint a famous painting.
Such people avoid low-risk situations because of the lack of a real challenge
and their understanding that such achievement is not genuine.
They also avoid high-risk situations because they perceive and understand it
to be more about luck and chance and not about one’s own effort.
b. Affiliation
The need for affiliation is the urge of a person to have interpersonal and
social relationships with others or a particular set of people.
They seek to work in groups by creating friendly and lasting relationships and
have the urge to be liked by others.
They tend to like collaborating with others to competing with them and
usually avoids high-risk situations and uncertainty.
People with a high need for affiliation are motivated by being liked and
accepted by others. They have a need for love, belonging and social
acceptance.
They tend to participate in social gatherings and may be uncomfortable with
situations of conflict.
c. Power
A need for controlling own work or the work of others.
People with a high need for power desire situations in which they exercise power and
influence over others.
They aspire for positions with status and authority and tend to be more concerned
about their level of influence than about effective work performance.
These people are strong leaders and can be best suited to leading positions. They
either belong to personal or institutional power motivator groups.
If they are a personal power motivator they would have the need to control others
and an institutional power motivator seeks to lead and coordinate a team towards an
end.
This motivational type is accompanied by needs for personal prestige and better
personal status.
McClelland’s… Criticism
It has less practical effect than other theories because McClelland argued that the three needs
are subconscious, meaning that we may be high on these needs without knowing. Measuring
them is not very easy.
There is no direct cause and effect relationship between need and behaviour. One particular
need may cause different types of behaviour in different persons. On the other hand, a
particular individual behaviour may be the result of different needs.
Overlooks basic needs – The physiological and safety needs are more important as compared
to McClelland’s needs.
A limited number of motivators - The theory focused on only three motivators: Power,
Achievement, and Affiliations. But, the theory failed to mention the other motivators such as
good wages, job security, and growth opportunities that can affect the motivation of
employees.
D. Alderfer’s ERG Theory
Clayton Paul Alderfer (1940-2015), an
American psychologist, developed Maslow’s
hierarchy of needs into a theory of his own
by simplifying into a three factor model.
His theory suggests that there are three
groups of core needs:
Existence (E), Relatedness (R) and
Growth (G).
These groups are aligned with Maslow’s
levels of physiological needs, social needs
and self-actualization needs respectively.
Alderfer’s ERG Theory…
Existence needs concern our basic material requirements for living, which
include what Maslow categorized as physiological needs such as air, sleep, food,
water, clothing, sex and shelter and safety-related needs such as health, secure
employment and property.

Relatedness needs have to do with the importance of maintaining interpersonal

relationships. These needs are based on social interactions with others and are
aligned with Maslow’s levels of love/belonging-related needs such as
friendship, family and intimacy as well as some part of esteem-related needs i.e.
extrinsic components of it such as achievement, status, wealth, public image etc.

Growth needs describe our intrinsic desire for personal development and
satisfaction with life. These needs are aligned with the other part of Maslow’s
esteem-related needs such as self-esteem, self-confidence and achievement and self-
actualization needs such as morality, creativity, problem-solving and discovery.
Two Concepts: Frustration-Regression

Alderfer is of the opinion that when a certain category of needs is not being
met, people will double their efforts to fulfill needs in a lower category.

Maslow’s theory, in comparison, is very rigid and it assumes that the needs follow a
specific and orderly hierarchy and unless a lower-level need is satisfied, an individual
cannot proceed to the higher-level need i.e. an individual remains at a particular need
level until that need is satisfied.

On the contrary, according to Alderfer’s theory, if a higher-level need is

aggravated, an individual may revert to increasing the satisfaction of a lower-
level need. This is called the frustration-regression aspect of ERG theory.
ERG Theory – Two Concepts…
ERG theory is very flexible as Alderfer perceived needs as a range/variety
instead of a hierarchy i.e. an individual can work on growth needs even if his
existence or relatedness needs remain unsatisfied.
E.g. when growth needs aggravate or worsen, then an individual
might be motivated to accomplish the relatedness need and if there
are issues in accomplishing relatedness needs, then he might be
motivated by the existence needs. Hence in this manner, frustration
or aggravation can result in regression to a lower-level need.
Another example could be, if someone’s self-esteem is suffering, he or
she will invest more effort in the relatedness category of needs.
Two Concepts: Satisfaction-Progression
In Maslow’s Hierarchy of Needs, individuals can only progress to the next
level of needs when the lower order of needs are met.
But, in Alderfer’s theory, if the individual progresses to the next order of
needs, it does not necessarily mean that the previous level of needs is
fulfilled completely. Progression doesn’t strictly have to be from one level to
another.
This concept is known as Satisfaction-Progression.
For instance, an employee is driven to finish some projects at work to secure a job
promotion (Growth Need). He works more than 10 hours a day on the project, thus
sacrificing his sleep, food, health and family time (Existential and Relatedness
Needs).
As a result, he is successful in completing the projects and securing a higher
position at his job, but this affects his health and personal relationships.
Alderfer’s ERG Theory: Implications
All 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 focuses solely on one
need at a time, then this will not effectively motivate the employee.
The frustration-regression aspect of ERG Theory has an added effect
on workplace motivation.
E.g. if an employee is not provided with growth and advancement
opportunities in an organization, then he or she might prioritise social
relationships at work as a substitute.
ERG Theory: Implications…
To meet those socializing needs, if the environment or circumstances
do not permit it, he might revert to the need for money to fulfill
those socializing needs.
By the time the manager realizes and discovers this, they will
take more immediate steps to fulfill those needs that are frustrated until
such time that the employee can again pursue growth.
ERG Theory: Criticism
It has been argued that it is too simplistic and does not take into
account all of the factors that can affect motivation.
For many critics the theory for its lack of empirical evidence.
The theory does not adequately explain how people can be
motivated to pursue goals that are not directly related to their
basic needs.
This theory says that an individual can satisfy any of the three needs
first. If that is the case, it is hard to determine which of the three
needs is more important to that person.
E. McGregor’s Theory X and Theory Y
Theory X and Theory Y were first explained by
McGregor, psychology professor at MIT, in his
book, "The Human Side of Enterprise,"
and they refer to two styles of management –
authoritarian (Theory X) and participative
(Theory Y).
At Antioch College, McGregor found that his
classroom teaching of human relations did not
always work in practice.
From these experiences, his ideas evolve and
lead him to recognize the influence of
assumptions we make about people and our
managerial style.
Theory X

It assumes that workers cannot exercise self-direction, desire

responsibility and like to work.
Managers who accept this theory believe that if you feel that your
team members dislike their work, have little motivation, need to be
watched every minute and are incapable of being accountable for their
work, avoid responsibility and avoid work whenever possible, then you
are likely to use an authoritarian style of management.
According to McGregor, this approach is very "hands-on" and usually
involves micromanaging people's work to ensure that it gets done
properly.
Theory Y
Assumes that workers can exercise self-direction, desire responsibility and like
to work.

Managers who accept this theory believe that if people are willing to work
without supervision, take pride in their work, see it as a challenge and want to
achieve more, they can direct their own efforts, take ownership of their work
and do it effectively by themselves.

These managers use a decentralized, participative management style.

Motivation is maximized by participative decision making, interesting jobs and

good group relations.
Theory X and Theory Y… Criticism
Theory X style of management fosters a very hostile and distrustful
atmosphere
An authoritarian organization requires many managers just because they need to
constantly control every single employee, and the method of control usually
involves a fair amount of threat and coercion.
Theory Y style of management is tough to uphold in reality -
The core belief of Theory Y, is that with the right support and the right
environment, self-directed employees will be able to perform their jobs well.
However, because every individual is different from one another, creating an
environment which fits all does not sound very practical in the current era of
organizations.
Theory X and Theory Y… Criticism
Theory X and Theory Y work on assumptions
Organizations should be careful, and not rely too heavily on Theory X
and Theory Y because there are a lot of assumptions.
The workforce is changing nowadays, and the workplace is a dynamic
mix of employees from different backgrounds, races and genders.
Also, employees might have completely different motivations and goals
for choosing to work within an organization.
 A. Adam’s
Equity Theory
B. Vroom’s
Expectancy
Theory
C. Locke’s Goal-
Setting Theory
D. Skinner’s
Reinforcement
Theory

C
Process-based Theories – Process theories attempt instead to determine how
o
factors that motivate behavior interact with each other. In other words, process theories
n
look at the psychological and behavioural processes that effect an individual’s
motivation.
t
A. Adam’s Equity Theory
Adams' Equity Theory of Motivation posits that employees are motivated when
they believe they are receiving a fair reward for their work.
This theory was developed by J. Stacey Adams in 1963 and has since been
used to explain employee behavior and motivation.
Adams' Equity Theory suggests that employees compare their own inputs and
outputs (e.g. effort and rewards) to those of others and when there is a
perceived imbalance, they will act to restore equity.
It states that employees are motivated to keep their own perceived fairness
levels in balance with those around them i.e. if they feel they are being treated
unfairly, they will be less motivated to work hard.
Adam’s Equity Theory…Example
Candidate A graduated last year from Kathmandu university in kathmandu with a degree
in accounting.
After interviews with a number of organization, he was very pleased with the offer he
received: challenging work with a prestigious firm, an excellent opportunity to gain
valuable experience and the highest salary.
His employer is extremely pleased with his performance, so he received a raise of Rs.
4500 per month.
However, candidate A’s motivational level has dropped dramatically in the past few weeks.
Why?
His employer has just hired a fresh graduate who lacks the experience compared to him,
for Rs. 5000 per month, more than what he now makes.
Now he is upset and looking for new job. His situation illustrate the role that equity
plays in motivation.
Equity Theory…
Employees perceive what they get from a job situation (salary levels,
raises, recognition) in relationship to what they put into it (effort,
experience, education, competence) and then they compare their
outcome – input ratio with that of relevant others.
Equity Theory…
If we perceive our ratio to be equal to that of the relevant other with
whom we compare ourselves, a state of equity exists; we perceive that
our situation is fair and justice prevails.
When we see the ratio is unequal and we feel under rewarded, we
experience equity tensions that creates anger.
When we see over rewarded tensions creates guilt.
Equity Theory…
A theory based on the social comparison between an individual and a
referent
Focuses on perception of how fairly individual is being treated.
Equity is achieved when the ratio of individual’s outcomes to inputs
equals that of a referent other’s.
Equity Theory…
Inputs – what employee contributes to the job such as education,
skills, experience, etc.
Outcomes – what an individual receives from job such as pay,
recognition, benefits, etc.
Thus, the equity theory states that an individual compares his
outcome/input to those of the others working in the same position in
the organization or in other organizations and tries to establish equity.
Consequences of Inequity
Change inputs (e.g. reduce performance efforts or get a co-worker to
accept more work)
Change outcomes (e.g. ask for a raise in rewards)
Leave the situation (e.g. quit the job)
Psychologically distort the comparisons (e.g. rationalize that the
inequity is only temporary)
Change comparison points (e.g. compare oneself to a different co-
worker)
Equity Theory… Criticism
The theory does not take into account an individual's ability or
willingness to work. A person may perceive that they are being
treated unfairly, even if they are not able or willing to do the work
required.
The theory does not consider an individual's personal goals and
values.
A person may be motivated by factors other than a sense of fairness,
such as a desire to achieve their personal goals or live up to their
values.
The theory does not address how an organization can create a fair
and equitable environment for all employees.
Equity Theory… Criticism
It does not take into account personal and cultural differences which
may affect the perception of equity. It was found that the
behavioural approach to restoring inequity and equity perception
varies across cultures and the personal profit-maximization norm
may not hold true universally for all people.
It oversimplifies the normative foundation of individuals’ behaviour in
the social exchange context. Social relations cannot be reduced to a
simple evaluation of inputs and outputs due to the difference in the
nature of relations, the resources being exchanged, the context and
personality factors
B. Vroom’s Theory of Expectancy
Victor Vroom’s expectancy theory of motivation is a process theory of
motivation. It says that an individual’s motivation is affected by their
expectations about the future.
Expectancy theory argues that the strength of our tendency to act a certain
way depends on the strength of our expectation of a given outcome and its
attractiveness.
This theory suggests that individuals are motivated based on their belief in
the correlation between efforts, performance expectations and desirable
rewards.
In more practical terms, employees will be motivated to exert or apply a high
level of effort when they believe it will lead to a good performance appraisal.
Expectancy Theory…
Victor Vroom believed that people’s motivation is influenced by the
type of reward they expect to receive for performing their tasks well.
(People in the organization determine how much effort they should put
to get the required rewards)
This is simply because humans are rational beings, always trying to
increase the perceived worth of such rewards.
For instance, a good appraisal will lead to organizational rewards such as
bonuses, salary increases or promotions and that the reward will satisfy the
employees personal goals.
Therefore, people will be motivated to engage in a behaviour to the degree
that they believe that the behaviour will lead to a valued outcome.
Expectancy Theory…
Vroom suggests that employees performance is based on individual
factors such as personality, skills, knowledge, experience and
abilities.
Although individuals may have different sets of goals, they can be
motivated if they believe that:
There is a positive correlation between efforts and
performance.
Favorable performance will result in a desirable
reward.
The reward will satisfy an important need.
The desire to satisfy the need is strong enough to
make the effort worthwhile.
Expectancy Theory…

Vroom’s Expectancy Theory of motivation says that an individual’s motivation is

affected by their expectations about the future.

In his view, an individual’s motivation is affected by:

a. Expectancy
b. Instrumentality

c. Valence
d.

It’s important to note that rewards could be intrinsic or extrinsic.

Extrinsic motivations are external things such as money and promotion.
Intrinsic motivations are internal things such as a sense of fulfillment and
achievement.
Expectancy Theory…

Motivation is a function of expectancy, instrumentality and valence.

M= E*I*V
(All of the three variables are highly positive variables. If value of any variable is zero,
motivated performance becomes zero.)
a. Expectancy
It is the belief that increased effort will lead to increased performance. (If I work
harder, I will perform better)
Expectancy is the likelihood that a specific action will result in a specific outcome. It
also refers to as ‘Effort-Performance Probability’. It explains the association between
efforts and performance.
Employees have different expectations and levels of confidence about what they are
capable of doing.
Expectancy value ranges from 0 to 1. So, if employees feel the likelihood to attain an
outcome is zero, the efforts would also be 0.
Management must discover what resources training or supervision employees need
and provide:
Appropriate resources available (e.g., raw materials, time)
Appropriate management skills and support to get the job done (e.g. supervisor support or correct
information on the job)
b. Instrumentality
Instrumentality refers to a person’s expectation and belief that his performance will result in a
specific desired reward. (If I perform well, I will complete the specified effect)

The perception of employees as to whether they will actually get what they desire even if it
has been promised by a manager. Management must ensure that promises of rewards are
fulfilled and that employees are aware of that.

The value for instrumentality ranges from 0 to 1. It reflects the relationship between
performance and reward. For this reason, it refers to ‘Performance-Reward Probability’.

This is affected by things such as:

A clear understanding of the relationship between performance and outcomes – e.g. the rules
of the reward ‘game’
Trust in the people who will take the decisions on who gets what outcome
Transparency in the process decides who gets what outcome
c. Valence
Value of the reward(s) which results from performance i.e. it is how much importance
(attractiveness or aversion) the individual places upon the expected outcome.
Valence refers to the emotional orientations people hold with respect to outcomes (rewards).
How much does the employee really want the reward?
The depth of the want of an employee for extrinsic (money, promotion, time-off, benefits) or
intrinsic (satisfaction) rewards.
Every person has a different perception towards valence. As, what is valuable for one person
might not be for others.
For example, employees interested in promotion and recognition will not have any valence for
cash rewards.
Valence is perceived value of the reward as opposed to the actual value after attaining the
outcome. If the value of reward is zero, that means the employee is indifferent to the
reward.
Hence, management must discover what employees value.
Expectancy Theory… Criticism
This theory assumes that human are rational beings. In reality,
humans can be intuitive and irrational. Many decisions made involve
unconscious thinking process.
Not many research studies have been involved while designing or
testing Vroom’s theory. So, this theory is difficult to research and
apply in practice.
Limited consideration of individual factors – The theory assumes that
all individuals have the same goals and desires, and it does not
adequately account for the diverse needs and motivations of
different individuals.
Expectancy Theory… Criticism

The simplicity of expectancy theory is deceptive because it assumes that if an

employer announces a reward (financial bonus or promotion) enticing
enough, employees will increase their productivity to obtain the reward.

However, this only works if the employees believe the reward is beneficial to
their immediate needs.

E.g. a $1K increase in salary may not be desirable to employees if the increase pushes
them into a tax bracket in which they believes their net pay is actually reduced.

Similarly, a promotion that provides higher status but requires longer hours may be a
deterrent to an employee who values evening and weekend time with his children.
C. Goal Setting Theory
Edwin A. Locke, a psychologist from the University of Maryland in the
1960s began a 30-year study of goal-setting and the impacts that
goal-setting has on human motivation. By 1968, he had developed
the Goal Setting Theory to explain what motivated people in the
workplace.
In his book, "Goal Setting: A Motivational Technique that Works!"
Edwin A. Locke concluded that humans work best and are most
motivated when they are working together toward a common goal.
Goal setting is essentially linked to task performance.
Goal Setting Theory…
It states that specific and challenging goals along with appropriate
feedback contribute to higher and better task performance.
Simply put, goals provide direction to an employee about what
needs to be done and how much efforts are required to be put in.
Goal-setting theory is generally considered the foundation for SMART
goals, a popular goal setting framework. This acronym suggests
goals should be Specific, Measurable, Attainable, Relevant and Time-
bound for best results.
Goal Setting Theory: Features
The willingness to work towards attainment of goal is main source of job motivation. Clear,
particular and difficult goals are greater motivating factors than easy, general and vague goals.

Specific and clear goals lead to greater output and better performance. Unambiguous,
measurable and clear goals accompanied by a deadline for completion avoids
misunderstanding.
Goals should be realistic and challenging. This gives an individual a feeling of pride and triumph
when he attains them, and sets him up for attainment of next goal. The more challenging the
goal, the greater is the reward generally and the more is the passion for achieving it.

Better and appropriate feedback of results directs the employee behaviour and contributes to
higher performance than absence of feedback. Feedback is a means of gaining reputation,
making clarifications and regulating goal difficulties. It helps employees to work with more
involvement and leads to greater job satisfaction.
Employees’ participation in goal is not always desirable. Participation in goal setting, however,
makes goal more acceptable and leads to more involvement.
Goal Setting Theory… Outcome
Self-efficiency
Self-efficiency is the individual’s self-confidence and self-belief that
he has potential of performing the task.
Higher the level of self-efficiency, greater will be the efforts put in
by the individual when they face challenging tasks.
Lower the level of self-efficiency, less will be the efforts put in by
the individual or he might even quit while meeting challenges.
Goal Setting Theory… Outcome
Goal commitment: Goal setting theory assumes that the individual is
committed to the goal and will not leave the goal.
The goal commitment is dependent on the following factors:
Goals are made open, known and broadcasted.
Goals should be set-self by individual rather than designated.
Individual’s set goals should be consistent with the organizational
goals and vision.
Goal Setting Theory…
According to this theory, individual behavior is the function of conscious
goals.
It is, therefore, by setting clear and smart goals, managers can motivate
employees and can exercise better control.
For this, organizations can adopt effective goal setting initiatives.
Goal Setting Theory tends to encourage motivation when:

Goals are stated in specific and clear terms

Goals are challenging but not unachievable
Individuals participate in goal setting process
Goal Setting Theory… Criticism
The Wrong Goals: One of the challenges in goal-setting is that the focus
it brings can create a sense of tunnel vision. Example:
When Coca-Cola set the goal of reformulating their signature
cola to make it sweeter and more competitive with Pepsi,
the company's focus on that goal trumped researching
whether or not customers wanted the product to change.
As a result of this, the release of New Coke in 1985
remains one of the greatest product failures in history. While a
focus on goals doesn't always lead to spectacular
failures, it can also lead to employees abandoning more
mundane, but still necessary, tasks as they focus on the
"one big thing."
Goal Setting Theory… Criticism
Incentivizing Unethical Behavior:
In companies that set aggressive goals, sometimes referred to as
"stretch" goals, employees can take the desire to achieve the goal
too far.

Given the desire to earn the rewards for achieving the goal and
avoid the sanctions for not hitting it, employees may engage in
unethical behavior to reach their targets. Over the long run, this
behavior can harm the organization.
Goal Setting Theory… Criticism
Goals that are too far above an employee's skills and competencies
can have a negative effect on the employee's performance and
motivation to complete the goal.
There is no evidence to prove that goal-setting improves job
satisfaction.
D. Reinforcement Theory
Reinforcement theory of motivation was proposed by B.F. Skinner and his
associates. It states that individual’s behaviour is a function of its
consequences.
It is based on “law of effect”, i.e. individual’s behaviour with positive
consequences tends to be repeated, but individual’s behaviour with negative
consequences tends not to be repeated.
Thus, according to Skinner, the external environment of the organization must
be designed effectively and positively so as to motivate the employee.
This theory is a strong tool for analyzing controlling mechanism for
individual’s behaviour. However, it does not focus on the causes of individual’s
behaviour.
Positive Reinforcement
This implies giving a positive response when an individual shows positive and
required behaviour.
For example - Immediately praising an employee for coming early for job. This will
increase probability of outstanding behaviour occurring again.

Reward is a positive reinforce, but not necessarily. If and only if the

employees’ behaviour improves, reward can said to be a positive reinforcer.

Positive reinforcement stimulates occurrence of a behaviour. It must be noted

that more spontaneous is the giving of reward, the greater reinforcement
value it has.
Negative Reinforcement

This implies rewarding an employee by removing negative /

undesirable consequences.

Both positive and negative reinforcement can be used for increasing

desirable/required behaviour.
Extinction
It implies absence of reinforcements.
In other words, extinction implies lowering the probability of
undesired behaviour by removing reward for that kind of behaviour.
For instance - if an employee no longer receives praise and
admiration for his good work, he may feel that his behaviour is
generating no fruitful consequence.
Extinction may unintentionally lower desirable behaviour.
Punishment
It implies removing positive consequences so as to lower the
probability of repeating undesirable behaviour in future.
In other words, punishment means applying undesirable
consequence for showing undesirable behaviour.
For instance - Suspending an employee for breaking the
organizational rules.
Punishment can be equalized by positive reinforcement from
alternative source.
Reinforcement Theory… Criticism
The reinforcement theory of motivation ignores the inner feelings and
drives of individuals.
It focuses totally on what happens to an individual when he or she
takes action. Thus, according to this theory, the organisation’s
external environment must be designed effectively and positively to
motivate the employees.
This theory is a strong tool for analysing the controlling mechanism
for an individual’s behaviour. However, it does not focus on the causes
of an individual’s behaviour.
Application of Motivation Theories

Employees
Involvemen
t

Alternative Establishin
Work g Pay
Arrangeme Structure
nts

Job Variable
Redesignin Pay
g Programme
s
Flexible
Benefits
Application of Motivation Theories…

Employees Involvement: Participative management (being part of

decision making) and representative participation (employees
represented in the BoD).

Establishing Pay Structure: Internal (value of job to firm) and external

equity (competitive market rate)

Variable Pay Programmes: Other than regular pay structure. Additional

pay plan such as bonuses, skill based pay, profit/gain sharing plan,
stock options etc.
Application of Motivation Theories…

Flexible Benefits: Indirect benefits other than salary. E.g. holiday pay,
health insurance etc.

Job Redesigning: Job rotation, job enlargement, job enrichment and

tele-communication.

Alternative Work Arrangements: Flexible work time, job sharing and

hybrid mode of work (WFH).
Emerging Issues of Motivation

Motivating Professionals

Motivating Contingent Workers

Motivating Diverse Workforce

Motivating Low-skilled Service Workers

Motivating People Doing Highly Repetitive Tasks

1. Motivating Professionals
This is the age of globalization, an age of professionals. Employees
are already well paid and get a good physical working environment.
They like to get intrinsic satisfaction.
They have high concern for expertise than working hours. They are
more loyal to their profession than to their employers.
2. Motivating Contingent Workers
Contingent workers — freelancers, consultants, contractors, part-timers, temporary
workers etc. are going to become an even more essential part of everyone’s
workforces around the world.
Organizational downsizing, merger and acquisition, outsourcing, using different
modalities etc. are common occurrence due to the various reasons i.e. global
financial uncertainty and others. So, they are bound to use contingent workers.
As compared to permanent workers their jobs are less stable and less secure. They
receive less facilities and benefits but their contribution is not less to the
organization.
82 percent of businesses expect an increase in the utilization of contingent labor through 2021
and 2022
The average percentage of workers who are contingent is expected to grow to 24 percent in
2022 and to 29 percent by 2030
By 2050, it’s estimated 50 percent of the US workforce will be made up of freelance or
contingent workers
Staffing agencies are experiencing an increase in the demand for contingent workers.
3. Motivating Diverse Workforce

The issues indicate the heterogeneity of workforce and demand for

special attention/reward to special group of people.

Managers should realize that not everyone wants challenging task

and not everyone is motivated by money.

So, managers should adopt flexibility to address their special needs

by redesigning work schedule, compensation plan/benefits, physical
work setting etc.
4. Motivating Low-skilled Service Workers
These groups of people’s education and skill level are very low that’s
why their pay and chance of promotion is also low.
So their job turnover rate is high, a great problem to the managers.
Hence, some of the techniques to motivate them are:
Make them feel trusted and respected
Use monetary incentives
Listen to them before making decisions
Flexibility in working culture where possible
Implement employee development programme
5. Motivating People Doing Highly Repetitive Tasks
Some of the examples of this category are assembly line workers, security
guards, gate keepers etc.
These jobs are boring, monotonous and lack of creativity and freedom.
These problems can be solved through:
Careful selection (because everyone does not want a challenging job)
High pay as far as possible
Attractive work surroundings, frequent work breaks, the opportunity to socialize
with colleagues during these breaks, and supportive supervision etc.
Job Satisfaction
Job satisfaction refers to how well a job provides fulfillment of a
need or want, or how well it serves as a source or means of
enjoyment.
Job satisfaction is the degree to which individuals feel positively or
negatively about their jobs.
Job satisfaction, an unquantifiable metric, is defined as a positive
emotional response you experience when doing your job or when you
are present at work.
Leading organizations are now trying to measure this feeling, with
job satisfaction surveys becoming a staple at most workplaces.
Job Satisfaction…

It’s important to remember that job satisfaction varies from

employee to employee.
For instance, the factors that help one employee feel good about their
job may not apply to another employee in the same workplace under
the same conditions.

Job satisfaction is based on how we feel about our job – the good
career components that make us feel valued or let us feel like we have a
purpose Vs. the bad components such as long hours or unpleasant
tasks or feeling undervalued as an employee.
Approach to Job Satisfaction…
Multidimensi The challenging nature of work, pushing employees to new
onal heights
approach to
employee
satisfaction A level of convenience (short commutes, access to the right
is needed, digital tools, and flexible hours)
covering the
following Regular appreciation by the immediate management and the
areas: organization as a whole

Competitive pay, which employees maintain a good quality of

life

The promise of career progression in sync with employees’

personal growth targets
Job Satisfaction…
Job satisfaction is an emotional response to a job situation. As such, it
can’t be seen, it can only be inferred.
Job satisfaction is often determined by how well outcomes meet or
exceed expectations.
Job satisfaction represents several related factors; pay, work itself,
promotion opportunities, supervision and co-workers.
Sources / Determinants / Causes of Job Satisfaction / Dissatisfaction

Pay

Work Itself

Promotion

Supervision

Work Group

Working Conditions
Sources…
Pay: All workers wish for reasonable salary and when they
are well paid they ultimately turn into satisfied individuals.
The higher is their pay the more importance they receive as
an individual. Employees also consider fringe benefits as
being very important.
Work Itself: Most significant to staffs’ job satisfaction is to
make them believe that their job is important and their
responsibilities have an important effect on their
organisations.
Promotion: Employees are satisfied with promotion when the
latter are frequent, important and desirable. Nevertheless,
simply giving rewards does not guarantee job satisfaction.
Satisfaction with promotion is as well dependent on efforts
placed in doing one’s job.
Sources…
Supervision: Workers gain satisfaction from the professional
relationship with their superior, that is, the leadership style i.e.
democratic and autocratic.
Work Group: Helpful and pleasant colleagues lead to increasing
level of job satisfaction. For instance, many researches on
women from high positions have found that the women suffered
from job dissatisfaction because they did not have the support
of their colleagues at work.
Working Conditions: Every employee wishes for working conditions
which give highest comfort. When working conditions are of
good quality, impressive, secured and comfortable, it creates job
satisfaction, although not essentially high job satisfaction.
However, the lack of such working conditions causes a bad
impact on employees’ physical well-being, which prevents him to
give his best at work.
Effects of Job Satisfaction / Dissatisfaction
Satisfa
ction
and
Produc
tivity

Effects
Other of Job Satisfa
Effect ction
s Satisfact and
ion / Turnov
Dissatisf er
action

Satisfa
ction
and
Absent
eeism
 Job Satisfaction and Productivity
There is a positive correlation between job satisfaction and productivity.
However, this relationship is more complex that the simple path of
“satisfaction leads to performance.” Thus it is wrong to assume that high
satisfaction always leads to high employee performance.
Satisfaction and productivity positively encourage the other in a cyclical
way.
E.g. when we accomplish something productive, it makes us feel satisfied and happy.
Then we are more likely to be productive when moving on to other tasks because we
know accomplishing them will make us feel good.
It is important for managers to devote its efforts to aid its employee
performance, which will likely produce satisfaction as a by product.
 Job Satisfaction and Turnover
Satisfaction is negatively correlated to turnover. This is due to the facts that there are
various factors such as:
abnormal market conditions, expectations about alternative job opportunities and length of tenure
with the organization are important constraints on the actual decision to leave one’s current job for
some other work.

The correlation is much stronger between job satisfaction and absenteeism.

Evidence indicates that an important moderator of the satisfaction-turnover relationship
is the employee’s level of performance; meaning the satisfaction level is less important in
predicting turnover for superior employees as compared to the poor performers.
But studies suggest that regardless of level of satisfaction, the high performers are likely
to remain with the organization only on account of receipt of recognition, praise and
other rewards.
Job Satisfaction and Absenteeism/Tardiness
There is a negative relationship exists between satisfaction and
absenteeism.
Dissatisfied employees are more likely to be absent at their work, personal or
medical reasons not withstanding.
Tardiness or lateness is another way by which employees may exhibit their
dissatisfaction with job conditions. Tardiness is a type of short period
absenteeism ranging from a few minutes to several hours for each event. It is
another way by which employees withdraw from active involvement in the
organization.
This may impede the timely completion of work and disrupt productive
relationships with coworkers.
Job Satisfaction and Customer Satisfaction
A firm’s performance gets marked by keeping their customers satisfied
and happy. Satisfied customers come as a result of satisfied employees.
Satisfied employees increase customer satisfaction and loyalty.
Service organizations know that satisfied and loyal customers are highly
dependent on how frontline employees deal with their customers. Satisfied
employees are more likely to be friendly, upbeat and responsive in nature
which the customers appreciate.
Service based companies such as FedEx, Virgin Airlines, Four Seasons Hotels,
American Express etc. go out of their way in order to please their customers.
In order to provide that great impeccable service to their customers they focus on
hiring upbeat and friendly employees, train the employees in the importance of
customer service, reward customer service, provide positive work climates and track
employee satisfaction on a regular basis through various attitude surveys.