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UGB111

ORGANIZATION STUDIES
Module 4:
Motivation

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Learning Objectives
At the end of this lecture, students should be able
to:

• To expose students to various motivation theories that
are important in motivating employees.

• To identify the motivational benefits of intrinsic rewards.


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Learning Outcomes
At the end of this lecture, students should be able to:

• Analyze the relationship between motivation and job
performance.

• Apply motivation theories in rewards and job design.

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What Is Motivation?
The processes that accounts for an
individual’s intensity, direction, and
persistence of effort toward attaining a
organizational goal
•Intensity – the amount of effort put forth to
meet the goal
•Direction – efforts are channeled toward
organizational goals
•Persistence – how long the effort is
maintained

Performance = function (ability motivation)
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Needs and expectations of People at Work
1. Economic reward – such as pay, fringe benefits,
pension rights, material goods and security. This is an
instrumental orientation to work.

2. Intrinsic satisfaction – derived from the nature of the
work itself, interest in the job, and personal growth and
development. This is a personal orientation to work and
concerned with ‘oneself’.

3. Social relationship – such as friendships, group
working and the desire for affiliation, status and
dependency. This is a relational orientation to work and
concerned with ‘other people’.
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An Overview of Main Theories of Work
Motivation
Content Theories
Process Theories
Emphasis on what motivates individuals.

 Maslow’s Hierarchy of Needs Theory
 Herzberg’s Two-Factor Theory
 McClellan’s Achievement Motivation Theory





Emphasis on actual process of motivation

Cognitive Evaluation Theory
Goal-Setting Theory
Equity Theory
Expectancy Theory





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1. Maslow’s Hierarchy of Needs Theory
Higher
level of
needs
Lower
level of
needs
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1. Maslow’s Hierarchy of Needs Theory
Needs Levels General Rewards Organizational Factors
Physiological Food, Water, Sex,
Shelter
Pay
Pleasant working conditions
Cafeteria
Safety Safety, Security,
Stability, Protection
Safe working conditions
Job security

Social Love, Affection,
Belongingness
Cohesive work group
Friendly supervision
Professional associations
Esteem Self-esteem, Self-
respect, Prestige,
Status
Social recognition
Job title
High-status job
Feedback from the job itself
Self-
actualization
Growth, Advancement,
Creativity
Challenging job
Advancement in the organization
Achievement in work
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2. Herzberg’s Two-Factor Theory

• Pay
• Job security
• Working conditions
• Level and quality of
supervision
• Company policies
• Interpersonal
Relations
Hygiene Factors

• Promotional opportunities
• Opportunities for
personal growth
• Recognition
• Responsibility
• Sense of Achievement
Motivation Factors

The Dissatisfiers

The Satisfiers
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2. Herzberg’s Two-Factor Theory
 Basic salary and incentive benefits does not motivate
employee, however its absence will cause
dissatisfaction to the employee.

 Motivator factors (personal growth opportunities,
recognition) are strong contributors to higher job
satisfaction.

 Hence, organization should emphasize on setting
adequate basic salary and incentives that meet hygiene
needs of employee.

 Additionally, organization should incorporate
performance-based-pay, promotion opportunities, job
recognitions as key motivator.
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3. McClelland's Theory of Needs
 Need for Achievement (nAch)
 The drive to excel
 Need for Power (nPow)
The need to make others behave in a way they would
not have behaved otherwise
 Need for Affiliation (nAff)
The desire for friendly and close interpersonal
relationships
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3. McClelland's High Achievers
 High achievers prefer jobs with:
 Personal responsibility
 Feedback
 Intermediate degree of risk (50/50)
 High achievers are not necessarily good
managers
 High nPow and low nAff is
related to managerial success
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4. Cognitive Evaluation Theory
 Proposes that the introduction of extrinsic rewards for
work (pay) that was previously intrinsically rewarding
tends to decrease overall motivation
 Verbal rewards increase intrinsic motivation, while
tangible rewards undermine it
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5. Goal-Setting Theory
 Goals increase performance when the goals are:
 Specific
 Difficult, but accepted by employees
 Accompanied by feedback (especially self-
generated feedback)
 Contingencies in goal-setting theory:
 Goal Commitment – public goals better!
 Task Characteristics – simple & familiar better!
 National Culture – Western culture suits best!
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5. Goal-Setting Theory
Values
Emotions
and
desires
Goals and
intentions
Responses or
actions
Work
behavior and
performance
Consequence
or feedback
Goal Difficulty
Level of Commitment
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6. Equity Theory
 Employees weigh what they put into a job situation
(input) against what they get from it (outcome).

 They compare their input-outcome ratio with the input-
outcome ratio of relevant others.
Your Output
Your Input
My Output
My Input
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6. Equity Theory
Person’s outcomes Other’s Outcomes
Inputs Inputs
Person’s outcomes Other’s Outcomes
Inputs Inputs
Perceived
Inequity

Tension

Motivation
Changes to
inputs
Changes to
outcomes
Cognitive
distortion
Acting on
others
Changing
the object of
comparison
Leaving
the field
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6. Equity Theory and Reactions to Inequitable
Pay
Employees are:
Paid by:
Piece Time
Over-Rewarded
Will produce
fewer, but higher-
quality units
Will produce
more
Under-
Rewarded
Produce large
number of low
quality units
Produce less
output or output
of poorer quality
Employee reactions in comparison to equitably-paid employees
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6. Equity Theory: Forms of Justice
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7. Expectancy Theory
Three key relationships:
1. Effort-Performance: perceived probability that
exerting effort leads to successful performance
2. Performance-Reward: the belief that successful
performance leads to desired outcome
3. Rewards-Personal Goals: the attractiveness of
organizational outcome (reward) to the individual
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7. The Expectancy Model of Motivation
Environment
Motivation Effort Performance
Ability
Outcome
Outcome
Outcome
Valence
Outcome Valence
Outcome Valence
Valence
Valence
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• Use rewards appropriate in terms of individual
performance.

• Establish clear procedures for the evaluation of
individual levels of performance.

• Minimize undesirable outcomes that may effect result of
performance, i.e industrial accidents or sanctions from
co-workers.
7. Expectancy Theory
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The Job Characteristics Model
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.
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REFERENCES
Main text:

• Robbins, S & Judge, T (2012). Organizational Behavior, 15 edn, Prentice-
Hall, US.

Supplementary text:

• McShane, S.L. & Von Glinow, M.A. (2008). Organizational Behavior, 4 edn,
McGraw-Hill, US.

• Jennifer, M.G. & Gareth, R.J. (2011). Understanding and Managing
Organizational Behavior, 6 edn, Prentice-Hall, US.

• Buelens, M., Sinding, K. & Waldstrom, C. (2011). Organizational Behavior,
4 edn, McGraw-Hill.

• Newstrom, J.W. (2007). Human Behavior at Work, McGraw-Hill