 EXISTENCE NEEDS : THESES INCLUDE VARIOUS FORMS OF MATERIAL AND

PHYSIOLOGICAL DESIRES SUCH AS FOOD, SHELTER, PAY, FRINGE BENEFITS,

PHYSICAL WORKING CONDITIONS.

 RELATEDNESS NEEDS : THEY ADRESS OUR RELATIONSHIP WITH

SIGNIFICANT OTHERS SUCH AS FAMILY, FRIENDSHIP GROUPS, WORK
GROUPS, PROFESSIONAL GROUPS DRIVEN BY OUR NEEDS TO BE ACCEPTED
BY OTHERS AND TO INFLUENCE THOSE WITH WHOM WE INTERACT ON
GOING BASIS.

 GROWTH NEEDS : IMPLIES CREATIVITY AND INNOVATION ALONG WITH A

DESIRE TO HAVE A PRODUCTIVE IMPACT ON OUR SURROUNDINGS.
 ACCORDING TO ERG THEORY, WE GENERALLY TEND TO
CONCENTRATE FIRST ON OUR MOST CONCRETE REQUIREMENTS.

 AS EXISTENCE NEEDS ARE RESOLVED, WE HAVE MORE ENERGY

AVAILABLE FOR CONCENTRATING ON RELATEDNESS NEEDS WHICH
OFFER A POTENTIAL SOURCE OF SUPPORT THAT CAN HELP IN
SATISFYING GROWTH NEEDS.

 ALTHOUGH GENERAL LEVEL OF HIERARCHY IS RETAINED,

ALDERFER OBSERVES THAT ONE CAN BE CONCERNED WITH MORE
THAN ONE NEED AT THE SAME TIME.
 THUS ERG THEORY SUPPORTS “SATISFACTION

PROGRESSION” PRINCIPLE SIMILAR TO THAT OF

MASLOW IN THAT SATISFACTION OF ONE LEVEL OF

NEED ENCOURAGES CONCERN WITH THE NEXT LEVEL.

 HOWEVER, ERG THEORY ALSO INCORPORATES A
“FRUSTRATION – REGRESSION” PRINCIPLE. THIS
PRINCIPLE STATES THAT IF WE ARE CONTINUALLY
FRUSTRATED IN OUR ATTEMPTS TO SATISFY A HIGHER
LEVEL NEED, WE MAY CEASE TO CONCERN ABOUT
THAT NEED. INSTEAD, WE MAY REGRESS TO
EXHIBITING GREATER CONCERN FOR A LOWER LEVEL
NEED.
 HERZBERG CONDUCTED STUDY WITH 200 ENGINEERS AND ACCOUNTS

AND ASKED THEM TO RESPOND TO TWO QUESTIONS:

1. WHEN YOU FEEL PARTICULARLY GOOD ABOUT YOUR JOB – WHAT ARE

THE INCIDENTS IN YOUR JOB THAT MADE YOU FEEL SATISFIED?

2. WHEN DID YOU FEEL EXCEPTIONALLY BAD ABOUT YOUR JOB – WHAT

ARE THE INCIDENTS IN JOB THAT MADE YOU FEEL DISSATISFIED?

 HYGIENE FACTORS:

JOB DISSATISFACTION OCCURS WHEN THE HYGIENE FACTORS ARE

EITHER NOT PRESENT OR NOT SUFFICIENT. THESE ARE SUPPORT
FACTORS.

THEY DO NOT DIRECTLY AFFECT MOTIVATION BUT INFLUENCE

THE EXTENT OF EMPLOYEES DISSATISFACTION BUT CANNOT
STIMULATES PSYCHOLOGICAL GROWTH OR DEVELOPMENT.
EXCELLENT HYGIENE FACTORS RESULTS IN EMPLOYEES NOT BEING
DIS-SATISFIED AND REDUCES COMPLAINTS.
 MOTIVATING FACTORS:

JOB SATISFACTION OCCURS WHEN THE MOTIVATING FACTORS ARE

PRESENT. THEY PRODUCE JOB ENRICHMENT AND LEAD TO
SUPERIOR PERFORMANCE.

THEY LEAD TO POSITIVE MENTAL ASPECTS AND LEAD PEOPLE TO

GROW IN AND CONTRIBUTE TO WORK ENVIRONMENT. WHEN
THEY ARE ABSENT EMPLOYEES WILL BE DEMOTIVATED TO
PERFORM WELL AND ACHIEVE EXCELLENCE.
 HYGIENE FACTORS:  MOTIVATING
FACTORS
1. POLICY AND ADMN.
2. SUPERVISION 1. ADVANCEMENT
INTERPERSONAL
3.
2. RECOGNITION
RELATIONS
4. WORKING 3. WORK ITSELF
CONDITIONS 4. RESPONSIBILITY
5. SALARY 5. ACHIEVEMENT
6. STATUS 6. GROWTH
7. SECURITY
 The theory is based on three variables:
1. Valence
2. Instrumentality
3. Expectancy
 Valence (V) = Values of outcomes to an individual.
 Valance is ‘Positive’ when one prefers attaining an
outcome than to not attaining it.
 Valance is ‘Zero’ when one is indifferent to an
outcome.
 Valance is ‘Negative’ when one prefers not
attaining an outcome.
 Instrumentality ( I ):

It refers to the “degree” to which “first level”

outcome would help in attaining the desired
“second level” of outcome.
Instrumentality serves as an input for
valence.
 Expectancy (E):
It is the probability (0 to 1) that specific
action would produce a particular first level
outcome or effort.
Expectancy relates to person’s effort to first
level outcome.
And Instrumentality relates “first level
outcome” to “second level of outcome.”
 Effort Performance Outcome

Expectancy Instrumentality Valence

Belief that if I try hard, I Belief that if I do better, I And I value the reward
can do better get better reward
Motivational forces =

Valence (V) x Instrumentality (I) x Expectancy

(E)
 It is an extension of Vroom’s theory and explores
complex relationship among, motivation, satisfaction,
performance.

 It points out that efforts put in by an employee did

not directly result in performance.

 And not necessarily employee satisfaction will always

result into high productivity.
 According to the Porter Lawler Model performance
of an employee depends on three factors :

1. An employee should have motivation to perform

and accomplish assigned task.
2. Motivation alone cannot ensure successful
performance of a task. Employee should have
abilities and skills required for the same.
 3. The employee should have a clear

perception of his role in the organization

and an accurate knowledge of job

requirement which will enable him to focus

his efforts to accomplish the assigned

tasks.
 Important variables in the model:

1. Effort

2. Performance

3. Rewards

4. Satisfaction
 Effort :

This denotes the energy expended by an

individual to perform a specific task. It
depends on how attractive the reward is and
perception of the probability that his efforts
will lead to the reward. Motivation is an force
that drives an individual to make an effort to
perform a certain task.
Performance :

However making an effort does not deliver

performance on its own. It depends on his

abilities and skills and ways he perceives his

role in accomplishing the task. Thus there is

no perfect match between effort and

performance.
Reward :
An employee is rewarded based on his
performance which may be intrinsic or extrinsic
in nature.

Since intrinsic rewards are given by person

himself , they are less likely to be affected by
disturbing or negative thoughts and influences
of others. Extrinsic thoughts are likely to be
affected by others.
 Satisfaction:

It depends on whether the actual reward

offered, falls short of, match or exceed what
individual perceives as an equitable level of
reward.

Satisfaction takes place when actual rewards

exceed the perceived rewards and vice-versa
for dis-satisfaction.
1. The degree of equity or inequity perceived by an
employee with reference to his work situation plays
a major role in work performance and motivation.
2. Employee compare outcomes of the job in relation
to what he gives to the job (input).
3. Inputs includes, beside effort, other aspects like
experience, training, qualification, personal
characteristics etc. and outcomes are pay, fringe
benefits, incentives, promotion etc.
Employees compare outcome input ratio with that of
“others”.

Equity is represented schematically as :-

Person’s outcomes / Person’s inputs = Others’

outcomes / Others’ inputs.

Inequity occurs when:

Person’s outcomes / Person’s inputs < Others’

outcomes / Others’ inputs.
 An important variable is the referent chosen by the
employee.

A referent is an object of reference or individual with

whom the employee compares himself. The various
referent comparisons are :
1. Self inside : Comparison with those holding similar
positions in the same organization.
2. Self outside: Comparison with those holding similar
positions in other organizations.
 An important variable is the referent chosen by
the employee.

3. Other inside : Compares with others holding

different positions in the same organization.
4. Other outside : Compares with others
holding different positions in other
organizations.
There are four variables that influence an employees
choice of referent :

1. Gender of the employee.

2. Length of tenure of the employee in an
organization.
3. Level at which the employee is working in the
organization.
4. Level of education or professional qualification of the
employee.