Human Behaviour

In Organisation
(HBO)

Course Instructor: Dr. Shubhi Gupta

 Session 9 & 10

Work Motivation

Theories of Motivation and their applications, AMO

framework; Role of Intrinsic Motivation, Motivating
various groups
Maslow’s Hierarchy of needs + Two factor theory +
Equity theory + Expectancy theory + Job characteristic
Model
Who is Motivated?
 What is Motivation?
The result of the interaction between the individual and the
situation.

➢ The processes that account for an individual’s intensity,

direction, and persistence of effort toward attaining a goal –
specifically, an organisational goal.

➢ Three key elements:

Intensity – how hard a person tries
Direction – effort that is channeled
toward, and consistent with,
organizational goals
Persistence – how long a person can
maintain effort
 Motivation Is Not the Whole Story

Ability
(A)
Motivation Opportunity
to Perform
(M)
(O)

Performance
(P)

P = f(A x M x O)
AMO Framework
Intrinsic versus Extrinsic Motivation
 Intrinsic versus Extrinsic Motivation

Intrinsic motivation
• Motivated to do an activity for its own value – fulfills needs
directly
• Related to drives for competence and autonomy
Extrinsic motivation
• Motivated to receive something beyond own control –
fulfills needs indirectly
➢ Extrinsic motivators seldom undermine intrinsic
motivation
Intrinsic vs. Extrinsic Motivation Cont’d
The Theoretical Development of Work
Motivation
Early Theories of Motivation

These early theories may not be valid, but they do form the
basis for contemporary theories and are still used by
practicing managers.

➢Maslow’s Hierarchy of Needs Theory

– Alderfer’s ERG (Existence, Relatedness, and Growth)

➢Herzberg’s Two-Factor Theory

➢McClelland’s Theory of Needs

➢McGregor’s Theory X and Theory Y

 Maslow’s Hierarchy of Needs
There is a hierarchy of five needs. As each need is substantially
satisfied, the next need becomes dominant.

Assumptions Self-Actualization
Higher Order – Individuals cannot
Esteem move to the next
Internal higher level until
Social all needs at the
current (lower)
Lower Order Safety level are satisfied
External Physiological – Must move in
hierarchical order
Levels of Needs Self-Actualization
• personal growth, self-fulfillment, realization
of full potential
Esteem Needs
• self-respect, achievement, recognition,
prestige
• cues a person's worth
Social
• friendship, company, love, belonging
• first clear step up from physical needs
Security
• Feel safe, absence of pain, threat, or illness

Physiological/Survival needs
• Food, Clothing, Shelter, Air
Maslow’s Contribution to Motivation

Holistic perspective
• Recommended studying multiple needs together

Humanistic perspective
• Recognized that social dynamics, not just instinct, influence
motivation

Positive perspective
• Emphasized importance of self-actualization (growth needs)
• Foundation of positive OB
Compare the Early Theories of Motivation

Contrasting View of Satisfaction and Dissatisfaction

 Herzberg’s Two-Factor Theory

Comparison of Satisfiers and Dissatisfiers

Source: Based on Harvard Business Review, “Comparison of Satisfiers and Dissatisfiers,” An exhibit from One More Time:
How Do You Motivate Employees? by Frederick Herzberg, January 2003. Copyright © 2003 by the Harvard Business
School Publishing Corporation. All rights reserved.
Herzberg’s Two-Factor Theory Cont’d

Key Point: Satisfaction and dissatisfaction are not opposites

but separate constructs

Hygiene
Motivators
Factors

Company
Extrinsic and Growth Intrinsic and
Policies
Related to Related to
Dissatisfaction Salary Responsibility Satisfaction

Work
Achievement
Conditions
Criticisms of Two-Factor Theory

Herzberg says that hygiene factors must be met to remove

dissatisfaction. If motivators are given, then satisfaction
can occur.

➢Herzberg is limited by his procedure

– Participants had self-serving bias
➢Reliability of raters questioned
– Bias or errors of observation
➢No overall measure of satisfaction was used
➢Herzberg assumed but didn’t research, a strong
relationship between satisfaction and productivity
 Exercise: Short Scenario
The church you go to every Sunday is made up of people who
have very different lifestyles and are at different stages in
their life.
➢ Joanna is a 23-year-old single parent who works for
minimum wage and shifts from motel to motel for
accommodation.
➢ Joseph is a single, 45-year-old woman who earns a decent
salary and has few interests and friends outside her office.
➢ John is 60 years old, extremely wealthy, has a loving
family, and enjoys his work.
You have decided to apply Maslow's hierarchy of needs to
determine what motivates each of these individuals.
 In-Class Exercise

According to Maslow's hierarchy of needs, which of the following is a

lower-level need?
A) social-belongingness
B) safety-security
C) esteem
D) self-actualization
E) Recognition

According to Herzberg, when ________ are adequate, people won't be

dissatisfied, but they will also not be satisfied.
A) achievement needs
B) affiliation needs
C) motivational factors
D) power needs
E) hygiene factors
 Contemporary Theories of Motivation

➢ Cognitive Evaluation Theory (Self- Determination)

➢ Goal-Setting Theory
– Management by Objectives (MBO)
➢ Self-Efficacy Theory
– Also known as Social Cognitive Theory or Social Learning
Theory
➢ Reinforcement Theory
➢ Equity Theory
➢ Expectancy Theory
 Adams’ Equity Theory

➢ Employees compare their ratios of outcomes-to-inputs

of relevant others.
– When ratios are equal: state of equity exists – there is
no tension as the situation is considered fair
– When ratios are unequal: tension exists due to
unfairness
• Under rewarded states cause anger
• Overrewarded states cause guilt
– Tension motivates people to act to bring their situation
into equity
Adams’ Equity Theory
Equity Theory’s “Relevant Others”

➢ Can be four different situations:

Self-Inside
– The person’s experience in a different job in the same organization
Self-Outside
– The person’s experience in a different job in a different organization
Other-Inside
– Another individual or group within the organization
Other-Outside
– Another individual or group outside of the organization
Reactions to Inequity
➢ Employee behaviors to create equity:
– Change inputs (slack off)
– Change outcomes (increase output)
– Distort/change perceptions of self
– Distort/change perceptions of others
– Choose a different referent person
– Leave the field (quit the job)
➢ Propositions relating to inequitable pay:
– Paid by time:
• Overrewarded employees produce more
• Under rewarded employees produce less with low quality
– Paid by quality:
• Overrewarded employees give higher quality
• Under rewarded employees make more of low quality
 In-Class Exercise

(Q) Jim is a salaried employee whose job is to develop content for

online Web sites. He discovers that he is paid substantially more than
his colleagues even though their jobs and levels of performance are
very similar. According to the equity theory, what impact is this
discovery most likely to have on his behavior and performance?
A) He will reduce the amount of work that he does on a daily basis.
B) He will compare his earnings to those of another group of
employees.
C) He will increase his productivity and/or the overall quality of his
work.
D) He will seek a position within the company commensurate with his
pay.
E) He will begin to look for a position outside of the company.
Justice and Equity Theory
 Vroom’s Expectancy Theory

The strength of a tendency to act in a certain way depends

on the strength of an expectation that the act will be
followed by a given outcome and on the attractiveness of
the outcome to the individual.
Expectancy of Instrumentality Valuation of the
performance of success in reward in
success getting reward employee’s eyes
Vroom’s Expectancy Theory Cont’d
Expectancy Theory in Practice

Increasing E-to-P Expectancies

• Hire/train staff, and adjust job duties to skills
• Provide sufficient time and resources
• Provide coaching and behavioural modelling (examples of successful
coworkers) to build self-efficacy
Increasing P-to-O Expectancies
• Measure performance accurately
• Explain how rewards are linked to performance
• Provide examples of coworkers rewarded for performance
Increasing Outcome Valences
• Ensure that rewards are valued
• Individualize rewards
• Minimize counter valent outcomes
 In-Class Exercise

(Q) Logan is an employee who processes health insurance forms.

Initially he was criticized by his supervisor for sloppy work, but
thereafter he improved considerably. Now he consistently processes his
forms without errors and even does more than his fair share of work.
However, Logan's supervisor has not responded to the extra effort he
has put in, giving him no praise or monetary benefits. This leads Logan
to believe that his supervisor is biased against him. According to the
expectancy theory, in this situation, there is a problem in the ________
relationship.
A) rewards-personal goals
B) performance-awareness
C) performance-reward
D) performance-objectives
E) performance-achievement
 Motivation by Job Design: The JCM

➢ Job Characteristics Model (JCM)

– Hackman and Oldham’s concept that any job can be
described through five core job dimensions:
• Skill variety – Requirements for different tasks in the
job.
• Task identity – Completion of a whole piece of work.
• Task significance – The job’s impact on others.
• Autonomy – Level of discretion in decision making.
• Feedback – Amount of direct and clear information on
performance.
– The way elements in a job are organized (job design) impacts
motivation, satisfaction, and performance.
 The Job Characteristics Model

Employee growth-need strength moderates the relationships.

Source: J.R. Hackman and G.R. Oldham, Work Design (excerpted from pp. 78–80). © 1980 by Addison-Wesley Publishing Co., Inc. Reprinted by permission of
Addison-Wesley Longman, Inc.
 How Can Jobs Be Redesigned?
➢ Job Rotation
– The periodic shifting of a worker from one task to
another

➢ Job Enlargement
– The horizontal expansion of jobs

➢ Job Enrichment
– The vertical expansion of jobs
 Guidelines for Enriching a Job

Source: J.R. Hackman and J.L. Suttle, eds., Improving Life at Work (Glenview, IL: Scott Foresman, 1977), p. 138.
 Using Rewards to Motivate Employees
➢ Although pay is not the primary factor driving job
satisfaction, it is a motivator.
– Establish a pay structure
– Variable-pay programs
Four Major Strategic Reward Decisions

1. What to pay? (pay structure)

2. How to pay individuals? (variable pay plans and

skill-based pay plans)

3. What benefits to offer? Do we offer choice of

benefits? (flexible benefits)

4. How to build recognition programs?

 Establishing a Pay Structure

• Setting pay levels can be complex and requires a balance

of internal and external pay equity.
• Internal equity looks at the worth of the job to the
organization and compares it with what others are
making within the organization. External equity looks at
the external competitiveness of an organization’s pay
relative to pay elsewhere.

Internal Pay External

Equity Pay Equity
 What to Pay – Pay Structure
➢ Internal equity
– The worth of the job to the organization
– Determined by job evaluations
➢ External equity
– The competitiveness of the company’s pay relative to pay
elsewhere in the industry
– Determined through pay surveys
➢ Choose organizational position
– Pay leaders
• Greater employee loyalty
• Attracts better-quality employees
– Pay laggards – accept high turnover for low hourly costs
Integrating Contemporary Motivation Theories
Summary and Managerial Implications

➢ To Motivate Employees
– Recognize individual differences
– Use goals and feedback
– Allow employees to participate in decisions that affect
them
– Link rewards to performance
– Check the reward system for equity
 Global Implications
➢ Motivation theories are often culture-bound.
– Maslow’s Hierarchy of Needs Theory
• Order of needs is not universal
– McClelland’s Three Needs Theory
• nAch presupposes a willingness to accept risk and performance
concerns – not universal traits
– Adams’ Equity Theory
• A desire for equity is not universal
• “Each according to his need” – socialist/former communists
➢ Desire for interesting work seems to be universal.
– There is some evidence that the intrinsic factors of
Herzberg’s Two-Factor Theory may be universal
 References & Useful Weblinks
❑ The content of this PowerPoint presentation has been derived from the below mentioned
sources:
• Robbins, S. P., Judge, T. and Vohra, N. (2020). Organizational Behavior”, 19 th Ed.,
Pearson Education, New Delhi.
• McShane and Von Glinow (2017). Organizational Behaviour, 6th Ed., McGraw Hill, New
Delhi.

❑ The students may also refer to the below mentioned Weblinks for more clarification of the
concepts discussed in the chapter:
• https://youtu.be/O-4ithG_07Q - Maslow's Hierarchy of Needs
• https://youtu.be/dyr7wg9s7gM - Intrinsic vs. Extrinsic Motivation
• https://youtu.be/IpnzW06shsM - Vrooms Expectancy Theory
• https://youtu.be/QfovAw6Ix2s - Equity Theory

❑ The student may also read the following:

• Valcour, M. (2017). Motivating People Starts with Having the Right Attitude. Harward
Business review.
• Flexible Work Can Dampen Motivation by Laura M. Giurge and Kaitlin Woolley (HBR,
April 25, 2022)
 Thank You and Have a great day!
For any queries, please email
shubhi.gupta@fsm.ac.in

These slides contain copyrighted material. Please do not repost. Intended for class use
only at FORE School of Management, New Delhi