MOTIVATION

ORGANISATIONAL BEHAVIOUR
UNIT 4

R. ESI ASANTE
UPSA SOGS
LEARNING OUTCOMES
By the end of this topic, you should be able to:

1. Discuss the motivation process;

2. Describe early motivation theories;
3. Explain contemporary theories of motivation;
4. State the impact of under-rewarding employees;
5. Identify the implications of motivation theories; and
6. Explain how the contemporary theories of motivation
complement
each other.
INTRODUCTION

Managers need to motivate their employees and

all organisations need people who are motivated
to work hard and smart.
The theories which provide insights for managers
vary.
 Motivation theories can be categorised into two
segments, namely early theories of motivation
and contemporary theories of motivation.
They have implication of for managers hence the
need to study and know/understand them how to
integrate them into organisations.
WHAT IS MOTIVATION

Many people incorrectly view motivation as a personal trait that is, some
have it and others do not.
In reality, motivation is the result of the interaction of the individual and
the situation.
According to Robbins (2003), motivation is “the processes that
account for an individual’s intensity, direction and persistence of
effort toward attaining a goal.”
Organisations are interested in human motivation towards organisational
goals, so that they can narrow the focus to organisational goals in order
to reflect their singular interest in work-related behaviour.
Fundamentals of Motivation
• Motivation comes from the Latin movere, “to
move”
• Motivation requires:
– arousal to initiate behavior toward a goal
– direction to properly focus that behavior
– persistence to ultimately attain the goal
• The motivation “toolkit” contains:
– content or need theories to help us understand
what people want
– process theories to understand the motivation
process
Elements

Three key elements can be derived from the definition. These

are intensity, direction and persistence as further explained
below:
(a) Intensity is concerned with how hard a person tries. This is
the element most of us focus on when we talk about
motivation.
(b) Direction is the orientation that benefits the organisation.
(c) Persistence is a measure of how long a person can
maintain his/her effort.
Motivated individuals stay with a task long enough to
achieve their goal.
 Overview of the main Theories of Work Motivation
EARLY THEORIES OF WORK MOTIVATION

Scientific management and the work of F. W. Taylor

The Hawthorne experiments and the Human Relations approach

Development of many competing theories on the nature of the work motivation

CONTENT THEORIES

Emphasis on what motivates individuals. Major writers include

Maslow, Alderfer, Nohria, Herzberg and McClelland

PROCESS THEORIES

Emphasis on the actual process of motivation. Major theories under this

include: Expectancy theories, Equity theory, Goal Theory, Attribution theory.
THE VARIOUS THEORIES ARE NTO CONCLUSIVE BUT PROVIDE A USEFUL FRAMEWORK IN WHICH TO DIRECT STUDY
 EARLY THEORIES OF MOTIVATION
 Earlier explanations of employee motivation are based on the
work of Fredrick W. Taylor and others in the scientific management
school.
 At the heart of this management approach to motivation are: the
division of labour, task specialisation, time management and use
of monetary rewards.
 Consequently in the 1950s a more focused research was carried
out specifically on motivation and three specific theories were
formulated which are commonly known as internal motivational
theories or needs theories of motivation
 . E.g. 1) Maslow’s hierarchy of needs theory, 2) Theories X and Y
and 3) Hezberg’s two-factor theory.

 These early theories are important to understand because they

represent a foundation from which contemporary theories have
grown
CONTENT THEORIES
Hierarchy of Needs Theory –
Abraham Maslow (1934 – 1970) developed the Hierarchy of
Needs model in 1940-50's in America, and this theory remains
valid today for understanding human motivation,
management training and personal development.
 Maslow's PhD in psychology in 1934 at the University of
Wisconsin formed the basis of his motivational research,
initially studying rhesus monkeys.
 Indeed, Maslow's ideas surrounding the Hierarchy of Needs
concerning the responsibility of employers to provide a
workplace environment that encourages and enables
employees to fulfil their own unique potential (self-
actualisation) are today more relevant than ever.
 Hierarchy of needs

Abraham Maslow’s
hierarchy of needs is the
most well-known theory
of motivation.
He hypothesised that
within every human
being there exists a
hierarchy of five needs as
depicted in the following
Figure
Levels of Need

 Starting from the lowest these needs can be explained as:

(a) Physiological: Includes hunger(food), thirst (water), shelter, air
and other bodily needs;
(b) Safety/security: Includes security and protection from physical
and emotional harm;
(c) Social/affiliation: Includes affection, belongingness,
acceptance and friendship;
(d) Esteem: Includes internal esteem factors such as self-respect,
autonomy, and achievement; and external esteem factors such
as status, recognition, and attention; and
(e) Self-actualisation: The drive to become what one is capable
of becoming; includes growth, achieving one’s potential, and
self-fulfillment.
 Assumptions
 As a need becomes substantially satisfied, the next need becomes
dominant.
 No need is ever fully gratified; a substantially satisfied need no
longer motivates.
 Maslow separated the five needs into higher and lower orders
needs.
 Physiological and safety needs are described as lower-order.
 Social, esteem and self-actualisation are as higher-order needs.
Higher-order needs are satisfied internally. While, lower order needs
are predominantly satisfied externally.
 Maslow’s need theory has received wide recognition, particularly
among practicing managers. In fact, many organisations apply
Maslow’s theory to employee motivation through their job design,
award and compensation and benefit programmes.
 However, research does not generally validate the theory.
Applying Maslow’s need hierarchy
McGreggor’s Theories X and Y
Theory X and Theory Y was propounded by Douglas
McGregor, an American social psychologist. He proposed it
in his famous book 'The Human Side of Enterprise’ in 1960 .
Theories X and Y are still referred to commonly in the field of
management and motivation, and whilst more recent
studies have questioned the rigidity of the model, Mcgregor's
X-Y Theory remains a valid basic principle from which to
develop positive management style and techniques.
McGregor's XY Theories remain central to organisational
development, and to improving organisational culture.
Douglas McGregor concluded that a manager’s view of the
nature of human beings is based on a certain grouping of
assumptions
Theory X Assumptions

 Theory X Assumptions are Basically Negative

(i) Employees inherently dislike work and, whenever possible, will

attempt to avoid it.

(ii) Since employees dislike work, they must be coerced,

controlled or threatened with punishment.

(iii) Employees will avoid responsibilities and seek formal direction

whenever possible.

(iv) Most workers place security above all other factors and will
display little ambition.
Theory X assumptions

Theory X assumptions are suited authoritarian

managers and typically the following are some of
the characteristics of a Theory X managers:
Results-driven and deadline-driven, to the exclusion
of everything else
Intolerant
Issues deadlines and ultimatums
Distant and detached
Aloof and arrogant
Elitist
Short tempered
Shouts
Theory Y Assumptions

Theory Y Assumptions are Basically Positive

(i) Employees can view work as being as natural as rest or

play.
(ii) People will exercise self-direction and self-control if they
are committed to the objectives.
(iii) The average person can learn to accept, even seek,
responsibility.
(iv) The ability to make innovative decisions is widely
dispersed throughout the population
Implications for managers

What are the implications for managers? This is best explained by

using Maslow’s framework:

 Theory X assumes that lower-order needs dominate individuals.

 Theory Y assumes that higher-order needs dominate individuals.
 McGregor himself held to the belief that Theory Y assumptions
were more valid than Theory X.
 There is no evidence to confirm that either set of assumptions is
valid.
 Either Theory X or Theory Y assumptions may be appropriate in a
particular situation.
Herzberg’s Two-factor Theory
 Frederick Herzberg (1923-2000), was a clinical psychologist and
pioneer of ‘job enrichment', regarded as one of the great original
thinkers in management and motivational theory.
 Frederick Herzberg's book 'The Motivation to Work', written with
research colleagues Bernard Mausner and Barbara Snyderman in
1959, first established his theories about motivation in the
workplace.
 Herzberg's survey work, originally on 200 Pittsburgh engineers and
accountants remains a fundamentally important reference in
motivational study.
 Herzberg expanded his motivation-hygiene theory in his
subsequent books: Work and the Nature of Man (1966); The
Managerial Choice (1982); and Herzberg on Motivation (1983).
Work satisfaction and dissatisfaction
 Herzberg was the first to show that satisfaction and dissatisfaction
at work nearly always arose from different factors, and was not
simply opposing reactions to the same factors, as had always
previously been believed.

 Frederick Herzberg investigated the question, “What do people

want from their jobs?” He asked people to describe, in detail,
situations in which they felt exceptionally good or bad about
their jobs.

 These responses were then tabulated and categorised as per

the table showing factors characterising events on the job that
led to extreme job dissatisfaction Source: Robbins 2003
Herzberg’s conclusion

From the categorised responses (refer to Figure), Herzberg concluded:

(a) Intrinsic factors, such as advancement, recognition, responsibility

and achievement seem to be related to job satisfaction.

(b) Dissatisfied respondents tended to cite extrinsic factors, such as

supervision, pay, company policies and working conditions.

(c) The opposite of satisfaction is not dissatisfaction.

(d) Removing dissatisfying characteristics from a job does not

necessarily make the job satisfying.
 Examples of Motivator and Hygiene Factors

Motivator Factors Hygiene Factors

(Sources of Job Satisfaction and (Sources of Job Dissatisfaction; Neutral
Motivation) to Motivation)

• Challenge of the work itself • Physical working conditions

• Responsibility Recognition • Company policies Quality of
Achievement supervision Coworker relationships
• Job advancement and Salary
professional growth • Status
• Job security
• Benefits, including work habits and
time management
Managing satisfaction and dissatisfaction factors

This theory also denotes that job satisfaction factors are

separate and distinct from job dissatisfaction factors.

Managers who eliminate job dissatisfaction factors may not

necessarily bring about motivation.

When hygiene factors are adequate, people will not be

dissatisfied; neither will they be satisfied.

To motivate people, emphasise factors intrinsically

rewarding that are associated with the work itself or to
outcomes directly derived from it.
CONTEMPORARY THEORIES OF MOTIVATION
 Contemporary Theories of Motivation are the second type of
theories which deal with employee motivation.

 It may be noted that these theories are considered contemporary

not because they necessarily were developed recently, but
because they represent the current state-of-the-art in explaining
employee motivation. They include both process and needs
theories.

 The following are some of the motivation theories which are known
as contemporary motivation theories. These are:

 Alderfer’s ERG Theory, McClelland’s Theory of Needs, Cognitive

Evaluation Theory, Goal-setting Theory, Reinforcement Theory,
Equity Theory, Expectancy Theory.
Alderfer’s ERG Theory
It is an advancement of Maslow’s original theory
developed by Clayton Alderfer who reworked with
Maslow’s need hierarchy to align it with the empirical
research. It is a needs theory.

His revised need hierarchy is labelled ERG theory. ERG

stands for three categories:
existence (E),
relatedness (R) and
growth (G).

He further argues that there are three groups of these core
needs: existence, relatedness and growth.
Groups
(a) The Existence Group
 (i) Provides our basic material existence requirements.
 (ii) They include Maslow’s physiological and safety needs.
(b) The Relatedness Group
 (i) The desire we have for maintaining important interpersonal
relationships.
 (ii) These social and status desires require interaction with others.
 (iii) They align with Maslow’s social need and the external
component.
(c) The Growth Group
 (i) An intrinsic desire for personal development
 (ii) These include the intrinsic component from Maslow’s esteem
category and the characteristics included under self-actualisation.
Difference
In addition to collapsing Maslow’s five needs into three,
Alderfer’s ERG theory also differs from Maslow’s in that it
further asserts the following:

More than one need may be operative at the same

time.
If the gratification of a higher-level need is stifled, the
desire to satisfy a lower level need increases.
ERG theory does not assume that there exists a rigid
hierarchy.
A person can be working on growth even though
existence or relatedness needs are unsatisfied, or all
three need categories could be operating at the same
time.
Alderfer’s ERG Theory

Growth Needs
1.Internal Self-Esteem Needs
2.Self-Actualization Needs

Relatedness Needs
1.Social Needs
2. Social Esteem Needs
3.Interpersonal Safety Needs

Existence Needs
1.Physiological Needs
2.Material Safety Needs
Growth Opportunities Satisfying
• Challenging Job • Autonomy
• Creativity • Interesting Work Existence,
• Organizational Advancement Achievement
• Responsibility
•
• Participation
Relatedness,
and Growth
Needs
Relatedness Opportunities
• Friendship • Quality Supervision
• Interpersonal Security • Work Teams
• Athletic Teams • Social Events
• Social Recognition

Existence Opportunities
• Heat • Air Conditioning • Clean Air
• Lighting • Rest Rooms • Drinking Water
• Base Salary • Cafeteria • Safe Conditions
• Insurance • Job Security • No Layoffs
• Retirement • Health Programs • Time Off
 Alderfer’s ERG Theory

SA Growth
Esteem

Love (Social) Relatedness

Safety & Security
Existence
Physiological
McClelland’s Theory of Needs

American David Clarence McClelland (1917-98)

achieved his doctorate in psychology at Yale in 1941 and
became a professor at Wesleyan University.
McClelland is chiefly known for his work on
achievement motivation and his thoery is known as
McClelland theory of needs.
His ideas have since been widely adopted in many
organisations, and relate closely to the theory of
Frederick Herzberg.
 The three Needs
The theory focuses on three needs: achievement, power and
affiliation.
(a) Need for achievement (n-ach)
The drive to excel, to achieve in relation to a set of standards,
to strive to succeed. The need to do well no matter what goal
is pursued.
(b) Need for power (n-pow)
The need to make others behave in a way that they would not
have behaved otherwise. The desire to control others,
influence behaviour and be responsible for them.
(c) Need for affiliation (n-affil)
The desire for friendly and close interpersonal relationships. The
desire to establish and maintain friendly and warm relationships
with other people.
Characteristics - Need for Achievement (nAch)

Some people have a compelling drive to succeed.

They are striving for personal achievement rather
than the rewards of success per se.
This drive is the achievement need (nAch).
McClelland found that high achievers differentiate
themselves from others by their desire to do things
better. These types of people share the following
characteristics:
(i) They seek personal responsibility for finding
solutions to problems;
Need for Achievement (nAch)

(ii) They want to receive rapid feedback on their

performance so they can tell easily whether they are
improving or not;
(iii) They can set moderately challenging goals. High
achievers are not gamblers, they dislike succeeding
by chance;
(iv) High achievers perform best when they perceive
their probability of success as 50-50; and
(v) They like to set goals that require stretching
themselves a little.
Characteristics - Need for Power (nPow)
The theory further states that the need for power
(nPow) is the desire to have impact, to be influential
and to control others. This type of people shares the
following characteristics:
 Individuals high in nPow enjoy being “in charge”;
Strive for influence over others;
Prefer to be placed into competitive and status-
oriented situations; and
Tend to be more concerned with prestige and
gaining influence over others than with effective
performance.
Characteristics - Need for Affiliation (nAff)
The third need isolated by McClelland is affiliation (nAfl).
These types of people share the following characteristics.
 This need has received the least attention from researchers;
Individuals with a high affiliation motive strive for friendship;
 Prefer cooperative situations rather than competitive ones;
and
Desire relationships involving a high degree of mutual
understanding.
Relying on an extensive amount of research, some
reasonably well-supported predictions can be made based
on the relationship between achievement need and job
performance.
 Three solid reason for higher offers
• Relying on an extensive amount of research, some reasonably
well-supported predictions can be made based on the
relationship between achievement need and job performance.

• individuals with a high need to achieve prefer job situations with

personal responsibility, feedback and an intermediate degree of
risk. When these characteristics are prevalent, high achievers will
be strongly motivated.

• Second, a high need to achieve does not necessarily lead to

being a good manager, especially in large organisations.

• People with a high achievement need are interested in how well

they do personally and not in influencing others to do well.
 Third, the needs for affiliation and power tend to be closely related to
managerial success. The best managers are high in their need for power and
low in their need for affiliation.

 Finally, employees have been successfully trained to stimulate their

achievement need. Trainers have been effective in teaching individuals to
think in terms of accomplishments, winning and success, and then helping
them to learn how to act in a high achievement way by preferring situations
where they have personal responsibility, feedback and moderate risks.

 McClelland further claims that many successful managers do not have a

high affiliation need because it gets in their way of achieving things.
Furthermore as an employee moves up the organisation, the need for
affiliation tends to decline.

 Interestingly, while high achievers get things done themselves they are often
ineffective as managers. They tend to be good entrepreneurs.
 A Graphic Comparison of Four
Content Approaches to Motivation

Maslow Herzberg Alderfer McClelland

Self- The work itself Growth Need for

actualization - Responsibility achievement
Esteem - Advancement
Higher - Growth Need for power
Motivators
order needs
Belongingness, Achievement
social, and love Relatedness
Recognition
Need for
Quality of inter-
Safety and personal relations affiliation
security among peers, with
Basic Hygiene supervisors Existence
needs Physiological conditions
Job security
Salary
 Implications of Need Theories
• Different people have different needs structures as
well as different needs that may be salient at a
given time.
• While satisfaction occurs when needs are met,
motivation flows from lack of
• A reward may satisfy multiple needs.
• Needs appear to form two or three
clusters.
Cognitive Evaluation Theory
 In the late 1960s, one researcher proposed that the
introduction of extrinsic rewards, such as pay-for-work effort
that had been previously intrinsically rewarding due to the
pleasure associated with the content of the work itself, would
tend to decrease the overall level of motivation.

 There was a growing realisation that traditional models of

motivation did not explain the diversity of behaviour found in
organisational settings.

 While research and theory building in the areas of goal setting,

reward systems, leadership, and job design had advanced our
understanding of organisational behaviour, most of that work
was built on the premise that individuals act in ways to
maximise the value of exchange with the organisation.
Cognitive Evaluation Theory
 In an effort to address these issues, some researchers turned to self-
theory as an alternative explanation for organizational behaviour.
This has come to be called the cognitive evaluation theory.
 Well researched and supported theorists have assumed that
intrinsic motivations, such as achievement, etc., are independent
of extrinsic motivators such as high pay, promotions, etc. Cognitive
evaluation theory suggests otherwise.
 When extrinsic rewards are used by organisations as payoffs for
superior performance, the intrinsic rewards, which are derived from
individuals doing what they like, are reduced.
 The popular explanation is that the individual experiences a loss of
control over his or her own behaviour so that the previous intrinsic
motivation diminishes.
 Furthermore, the elimination of extrinsic rewards can produce a
shift from an external to an internal explanation in an individual's
perception of causation of why he or she works on a task
Implications of cognitive evaluation theory

 If the cognitive evaluation theory is valid, it should have the following

major implications for managerial practices.

(a) If pay or other extrinsic rewards are to be effective motivators, they

should be made contingent on an individual’s performance.
(b) Cognitive evaluation theorists would argue that this will tend only to
decrease the internal satisfaction that the individual receives from doing
the job.
(c) If correct, it would make sense to make an individual’s pay non-
contingent on performance in order to avoid decreasing intrinsic
motivation.

 cognitive evaluation theory has also met with attacks, specifically on

the methodology used and in the interpretation of the findings.
Goal-setting Theory
 In the late 1960s, Edwin Locke proposed that intentions to work
toward a goal are a major source of work motivation and as such
the start of this theory.

 Goal Setting Theory holds that individual develop a set of conscious

goals that are the prime focus of their behaviour.

 Individuals make choices among behavioural alternatives based on

the belief that these behaviours will be instrumental in achieving
these goals.

 Goal-setting theory posits that certain perceived characteristics of

individual goals affect the individual's motivation to achieve them.

 Furthermore, when goals have these attributes, they tend to lead

to higher levels of performance.
Goal Attributes
 These goal attributes are as follows:

(a) Goals tell an employee what needs to be done and how much effort
is needed. The evidence strongly supports the value of goals.

(b) Specific hard goals produce a higher level of output than do the
generalized goals.

(c) If factors like ability and acceptance of the goals are held constant, we
can also state that the more difficult the goal, the higher the level of
performance.

(d) People will do better when they get feedback on how well they are
progressing toward their goals. Self-generated feedback is more powerful a
motivator than externally generated feedback.
Goal Attributes

 The evidence is mixed regarding the superiority of participative over assigned

goals.

 If employees have the opportunity to participate in the setting of their own goals,
will they try harder?

 A major advantage of participation may be in increasing acceptance.

 If people participate in goal setting, they are more likely to accept even a
difficult goal than if they are arbitrarily assigned it by their boss.

 There are contingencies in goal-setting theory.

 In addition to feedback, four other factors influence the goals-performance

relationship.
 Factors influence the goals-performance relationship

(i) Goal commitment: Goal-setting theory presupposes that an individual is committed to the goal.

(ii) Adequate self-efficacy: Self-efficacy refers to an individual’s belief that he or she is capable of
performing a task. The higher your self-efficacy, the more confidence you have in your ability to
succeed in a task.

(iii) Task characteristics: Individual goal setting does not work equally well on all tasks. Goals seem to
have a more substantial effect on performance when tasks are simple, well-learned and
independent.

(iv) National culture: Goal-setting theory is culture bound and it is well adapted to North American
cultures.

 The overall evaluation about goal theory is that intentions, as articulated in terms of hard and
specific goals, are a potent motivating force. However, there is no evidence that such goals are
associated with increased job satisfaction
Reinforcement/Learning Theory of Motivation

Fundamentals of reinforcement theory …

◦ Reinforcement theory focuses on the impact of external

environmental consequences on behavior.

◦ Law of effect — impact of type of consequence on future

behavior.
◦ Operant conditioning: Developed by B.F. Skinner. Applies
law of effect to control behavior by manipulating its
consequences.
 Reinforcement/Learning Theory of Motivation
In contrast to Goal-setting theory, which is a cognitive
approach, Reinforcement theory is behaviouristic
approach.
It argues that reinforcement conditions behaviour.
Reinforcement theorists see behaviour as being
environmentally caused.
It ignores the inner state of the individual and
concentrates solely on what happens to a person when
he or she takes some action.
Reinforcement also known as Learning theory focuses on
dominant behaviour. It is based on two fundamental
concepts: Types of Reinforcement; and Reinforcement
Schedules
 Type of Reinforcement

 There are four basic types of reinforcement.

 Two of these types of reinforcement act to encourage desired
behaviour (positive reinforcement and native reinforcement)
while
 The other two acts to reduce the probability of existing
behavioural patterns (punishment and extinction).
 It is important to note that reinforcement can either be socially or
naturally applied.
 Social application means that another individual is attempting to
modify your behaviour by controlling the type of reinforcement
and reinforce the schedule.
 Natural reinforcement occurs when conditions in the environment
reinforce the behaviour without human intervention.
 Positive Reinforcement
Positive Reinforcement increases the probability that
an exhibited behaviour will occur again in the future
by following this behaviour with a positive reinforce
(consequence that is desirable to the individual).

Positive reinforces may include bonuses, promotions,

public recognition, verbal praise, physical pleasure,
etc.

Negative Reinforcement also increases the likelihood

that a given behaviour will be exhibited again.
Negative Reinforcement

Negative reinforcement occurs when an

undesirable consequence is removed as result of
the behaviour. For example, suppose you are
feeling stressed out over an upcoming exam.

If spending time studying for the exam removes

the stress, the studying behaviour will be
reinforced. Likewise, if going out drinking removes
the stressful feeling, then that behaviour will be
reinforced.
 Punishment and Extinction

Punishment has the effect of decreasing the likelihood of

exhibited behaviours by following these behaviours with
undesirable consequence.
It is important to understand that punishment does not increase
behaviour and does not generate potential for Extra Role
Behaviour, but it's only capable of eliminating behaviour that is
undesirable from the point of view of the individual doing the
reinforcing.
From a management perspective, one might be successful in
eliminating certain undesirable behaviours, but punishment
alone, we have little control over what you behaviours might
replace these undesirable behaviours.
 Punishment and Extinction

Extinction reduces the likelihood that a given

behaviour will occur by eliminating any positive
reinforcement that motivates that behaviour.

According to operant conditioning principles, for a

behavioural pattern to be maintained, it must be
continually reinforced. Removing the source of
reinforcement will eliminate behavioural pattern
 Reinforcement Schedules
Reinforcement Schedules described the pattern of
reinforcement that is applied to a given behavioural
pattern. There are five basic reinforcement
schedules:
(i) Continuous Reinforcement - Behaviour is reinforced
every time that it occurs.
(ii) Fixed Interval Reinforcement - A behaviour is
reinforced based on a fixed time based schedule.
(iii) Variable Interval Reinforcement - The period of time
between instances, in which the behaviours reinforced,
varies.
Reinforcement Schedules

(iv) Fixed Ratio Reinforcement - Behaviour is reinforced every

nth time the behaviour is exhibited, where n is a constant
number of instances.
(v) Variable Ratio Reinforcement - Behaviour is reinforced
every nth time the behaviour is exhibited, where n is a
variable number of instances.

The two theories are clearly at odds philosophically.

Reinforcement is undoubtedly an important influence on
behaviour, but few scholars are prepared to argue that it is
the only influence
 Equity Theory (Adams, 1963)
What role does equity play in motivation? Equity plays a major role! Equity
(or inequity) is a psychological state residing within an individual. It creates
a feeling of dissonance that the individual attempts to resolve in some
manner.
Equity is a social comparison process, resulting when individuals compare
their pay to the pay of others. There is no "rational" or single "equitable pay
rate" for any given job or individual. Equity is a subjective evaluation, not an
objective one.
Based on the comparison that individuals use, each individual is likely to
develop different perceptions of equity. The comparisons individuals use
tend to fall into five classes of comparison:
 Categories for perceptions of equity.
(a) Job Equity - Individuals compare their pay to
the pay of other individuals in the same position
they hold within their organization (Department
Equity at a university, e.g., chemistry professors
comparing to other chemistry professors).

(b) Company Equity - Individuals compare their

pay to the pay of other individuals holding the
different positions within their organisation
(University Equity at one university, e.g., art
professors comparing to accounting professors).
(c) Occupational (Market) Equity - Individuals
compare their pay to the pay of other individuals
holding the same position in other organisations
(Market Equity. e.g., economics professors at one
university such as URI comparing to economics
professors at UCONN).
(d) Cohort Equity - Individuals compare their pay to
the pay of others in similar cohort groups, generally
age and education.
(e) Self-equity - Individuals compare their pay to the
pay they received at another point in time.
Referent comparisons
The key premise of this theory is that if we perceive our
ratio to be equal to that of the relevant others with
whom we compare ourselves, a state of equity is said to
exist. We perceive our situation as fair.

Alternatively, when we see the ratio as unequal, we

experience equity tension.

Additionally, the referent that an employee selects adds

to the complexity of equity theory.

There are four referent comparisons that an employee

can use:
Four referent comparisons
(i) Self-inside: An employee’s experiences in a different
position inside his or her current organisation.

(ii) Self-outside: An employee’s experiences in a situation or

position outside his or her current organisation.

(iii) Other-inside: Another individual or group of individuals

inside the employee's organisation.

(iv) Other-outside: Another individual or group of individuals

outside the employee's organisation.
Moderating variables
Which referent an employee chooses will be
influenced by the information the employee holds
about referents, as well as by the attractiveness of
the referent.

There are four moderating variables:

gender,
length of tenure,
level in the organisation and
amount of education or professionalism.
 Moderating variables
Men and women prefer same-sex comparisons. This also
suggests that if women are tolerant of lower pay, it may
be due to the comparative standard they use.

Employees in jobs that are not sex-segregated will make

more cross-sex comparisons than those in jobs that are
either male or female dominated.

Employees with short tenure in their current organisations

tend to have little information about others. Employees
with long tenure rely more heavily on co-workers for
comparison.
Choices – when inequality is perceived
Upper-level employees tend to be more cosmopolitan
and have better information about people in other
organisations. Therefore, these types of employees will
make more other external comparisons.
When employees perceive an inequity, they can be
predicted to make one of six choices:
Change their inputs;
Change their outcomes;
Distort perceptions of self;
Distort perceptions of others;
Choose a different referent; and
Leave the field.
Propositions relating to inequitable pay

The theory establishes the following propositions relating to

inequitable pay:
Given payment by time, over-rewarded employees will
produce more than will equitably paid employees;
Given payment by quantity of production, over-rewarded
employees will produce fewer, but higher quality, units than
will equitably paid employees;
Given payment by time, under-rewarded employees will
produce less or poorer quality of output; and
Given payment by quantity of production, under-rewarded
employees will produce a large number of low-quality units in
comparison with equitably paid employees.
 Historic findings
Finally, recent research has been directed at
expanding what is meant by equity or fairness.
Historically, equity theory focused on distributive
justice or the perceived fairness of the amount and
allocation of rewards among individuals.
Equity should also consider procedural justice, the
perceived fairness of the process used to determine
the distribution of rewards.
The evidence indicates that distributive justice has a
greater influence on employee satisfaction than
procedural justice.
Historic findings

Procedural justice tends to affect an employee’s

organisational commitment, trust in his or her boss and
intention to quit.
By increasing the perception of procedural fairness,
employees are likely to view their bosses and the
organisation as positive even if they are dissatisfied with
pay, promotions and other personal outcomes.
Equity theory demonstrates that, for most employees,
motivation is influenced significantly by relative rewards as
well as by absolute rewards, but some key issues are still
unclear which needs further research and understandings.
 Expectancy Theory

Developed by Victor Vroom,

expectancy theory defines motivation as
a process governing choices among
alternative forms of voluntary activity.
The components of expectancy theory
are instrumentalities, valences, and
expectancies.
Expectancy Theory
Expectancy Theory is one of the most widely
accepted explanations of motivation. Victor
Vroom’s expectancy theory has its critics but
most of the research is supportive.

Expectancy theory argues that 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 that outcome to the
individual.
Expectancy Theory

It says that an employee will be motivated to exert

a high level of effort when he/she believes that:

(a) Effort will lead to a good performance appraisal;

(b) That a good appraisal will lead to organisational
rewards; and
(c) That the rewards will satisfy his/her personal goals.
Relationship of variables
Relationship among the variable
Relationships
(i) Effort-performance relationship: the probability
perceived by the individual that exerting a given
amount of effort will lead to performance.
(ii) Performance-reward relationship: the degree to
which the individual believes that performing at a
particular level will lead to the attainment of a
desired outcome.
(iii) Rewards-personal goals relationship: the
degree to which organizational rewards satisfy an
individual’s personal goals or needs and the
attractiveness of those potential rewards for the
individual
Relationship among variables

(i) Effort-performance relationship: the probability

perceived by the individual that exerting a given amount
of effort will lead to performance.
(ii) Performance-reward relationship: the degree to which
the individual believes that performing at a particular level
will lead to the attainment of a desired outcome.
(iii) Rewards-personal goals relationship: the degree to
which organizational rewards satisfy an individual's personal
goals or needs and the attractiveness of those potential
rewards for the individual.
 Expectancy Theory of Motivation: Key
Constructs
Valence - value or importance placed on a
particular reward

Expectancy - belief that effort leads to

performance

Instrumentality - belief that performance is

related to rewards
 Expectancy Theory

Expectancy Instrumentality Valence

(how well the (how well the (the value
person X that
the
Motivational = X person
Force believes he or believes that person
she cqn performance
perform the attaches
will lead to
task certain to the
outcomes) outcome)

person believes
he or she can
perform the
 Expectancy Model of Motivation

Effort
Effort Performance Reward

Perceived effort– Perceived Perceived

performance performance– value of reward
probability reward
probability “What
“If I work rewards
hard, will I “What rewards do I value?”
get the job will I get when
done?” the job is well
done?”
 Managerial Implications of Expectancy
Theory
• Determine the outcomes employees value.
• Identify good performance so appropriate
behaviors can be rewarded.
• Make sure employees can achieve targeted
performance levels.
• Link desired outcomes to targeted levels of
• performance.
• Make sure changes in outcomes are large enough
to motivate high effort.
• Monitor the reward system for inequities.
Summary
Expectancy theory helps explain why a lot of workers merely do
the minimum necessary to get by. For example: If I give a
maximum effort, will it be recognized in my performance
appraisal?
The key to expectancy theory is the understanding of an
individual’s goals and the linkage between effort and
performance, between performance and rewards, and finally,
between the rewards and individual goal satisfaction.
As a contingency model, expectancy theory recognises that
there is no universal principle for explaining everyone’s
motivations.
Some critics suggest that the theory has only limited use,
arguing that it tends to be more valid for predicting in situations
where effort-performance and performance-reward linkages
are clearly perceived by the individual
Ability and Opportunity
 Motivation is a complex and multi-faceted phenomenon and
one way of looking at it is also the ability of individual and the
opportunity on the job. Success on a job is facilitated or
hindered by the existence or absence of support resources.

 A popular although arguably simplistic way of thinking about

employee performance is as a function of the interaction of
ability and motivation; that is, performance = f(A M).

 If either is inadequate, performance will be negatively affected.

We need to add opportunity to perform to our equation -
performance = f(A M O).
Relationship among variables

When you attempt to assess why an employee may

not be performing to the level that you believe he or
she is capable of, look at the environment to see if it is
supportive.
Supportive environment positively contributes to
performance while the lack of it negatively affects
employee performance.
OB application of this phenomenon will be to provide
the employee with all the resources and support so he
or she is able to perform the job.
Job performance will ultimately lead to job
satisfaction as well as higher motivation.
IMPLICATION OF MOTIVATION THEORIES

Motivation theories give a manager an insight into

the following key areas:
(a) Identifying and understanding employee needs;
(b) Examining the range of employee behavioural
choices and their respective attractiveness;
(c) Clarifying goals and performance expectations;
(d) Ensuring that rewards are closely tied to
performance; and
(e) Ensuring that rewards satisfy needs that are
important to employees.
INTEGRATION OF CONTEMPORARY MOTIVATION
THEORIES
Most of the motivation theories have drawbacks. If you
wish to motivate others, it will be a good idea to take
help form all the theories and integrate these concepts
to a single model.
Robbins (2003) provides a model as provided below
which integrates much of what we know about
motivation. Its basic foundation is the expectancy model.
Expectancy theory predicts that an employee will exert a
high level of effort if he/she perceives that there is a
strong relationship between effort and performance,
performance and rewards, and rewards and satisfaction
of personal goals (refer to the figure).
Each of this relationship, in turn, is influenced by certain
factors. For effort to lead to good performance, the
individual must have the requisite ability to perform,
and the performance appraisal system must be
perceived as being fair and objective.
The final link in expectancy theory is the rewards-goals
relationship. ERG theory would come into play at this
point.
Motivation would be high to the degree that the
rewards an individual received for his or her high
performance satisfied the dominant needs consistent
with his or her individual goals.
The model considers the achievement, need,
reinforcement, and equity theories.
High achievers are internally driven as long as the jobs
they are doing provide them with personal
responsibility, feedback, and moderate risks.
 Reinforcement theory recognises that the
organization rewards reinforce the individual’s
performance.
Individuals will compare the rewards (outcomes) they
receive from the inputs they make with the outcome-
input ratio of relevant others and inequities may
influence the effort expended.
 Individual Exercise/Assignment

1. What are the key motivators used in your

organisations?
2. How effective are they as motivators?
3. What motives do they appeal to?
4. Which of the motivation theories discussed
has the most practical application in your
organisation? Why?
 Individual Exercise/Assignment

5. Do your organization’s recruitment

and selection practices attract high
achievers? If so, how?

6. In what ways is the climate of your

organization satisfying/dissatisfying to
high achievers?
Your should use the organization you work
for.

Provide an introduction of the organization

and what it does.

Your work should be typed, at most two

pages, double spaced

Submit your work in two weeks.

THANK YOU