A key to success in management and in your career is knowing what

motivates YOU
1. ________High pay
2. ________Good working conditions
3. ________Friendly and supportive colleagues
4. ________Flexible working hours
5. ________Opportunities for growth and new challenges
6. ________Considerate boss
7. ________Inclusion in decisions that affect you
8. ________Fair and equitable treatment
9. ________Job security
10. ________Promotion potential
11. ________Excellent benefits (vacation time, retirement contributions, etc.)
12. ________Freedom and independence
• Now, compare your list with others in your class. How similar were your preferences?
It’s rare for lists to be exactly the same. This tells us that people differ in terms of
what they value.
• Second, use these results to better understand what you’re looking for in a job.
 Ch-8 Motivation

What Is Motivation?
• Define motivation.
• Explain motivation as a need-satisfying process.
Early Theories of Motivation
• Describe Maslow’s hierarchy of needs and how it can be used to motivate.
• Discuss how Theory X and Theory Y managers approach motivation.
• Describe Herzberg’s motivation-hygiene theory.
• Explain Herzberg’s views of satisfaction and dissatisfaction.
Contemporary Theories of Motivation
• Describe the three needs McClelland proposed as being present in work settings.
• Explain how goal-setting and reinforcement theories explain employee motivation.
• Discuss the motivation implications of equity theory.
 What Is Motivation?
• Motivation
• Is the result of an interaction between the person and a situation; it is not a
personal trait.
• Is the process by which a person’s efforts are energized, directed, and
sustained towards attaining a goal.
• Energy: a measure of intensity or drive.
• Direction: toward organizational goals
• Persistence: exerting effort to achieve goals.
• Individual performance is generally determined by three things: motivation
(the desire to do the job), ability (the capability to do the job), and the work
environment (the resources needed to do the job).
• If an employee lacks ability, the manager can provide training or replace the
worker.
• If there is a resource problem, the manager can correct it.
• But if motivation is the problem, the task for the manager is more
challenging.
Early Theories of Motivation

• Maslow’s Hierarchy of Needs

• MacGregor’s Theories X and Y
• Herzberg’s Two-Factor Theory
 Early Theories of Motivation
• Maslow’s Hierarchy of Needs Theory
• Needs were categorized as five levels of lower- to higher-order needs.
• Individuals must satisfy lower-order needs before they can satisfy
higher order needs.
• Satisfied needs will no longer motivate.
• Motivating a person depends on knowing at what level that person is
on the hierarchy.
• Hierarchy of needs
• Lower-order (external): physiological, safety
• Higher-order (internal): social, esteem, self-actualization
Exhibit 8–1 Maslow’s Hierarchy of Needs

Organizational Examples
Challenging job

Job Title

Friends at Work

Pension Plan

Base Salary
Cont’d
• physiological needs—things like food, water and air, which represent
basic issues of survival and biological function.
• In organizations, these needs are generally satisfied by adequate
wages and the work environment itself, which provides restrooms,
adequate lighting, comfortable temperatures, and ventilation
• Next are the security needs for a secure physical and emotional
environment.
• These needs can be satisfied in the workplace by job continuity (no
layoffs), a grievance system (to protect against arbitrary supervisory
actions), and an adequate insurance and retirement benefit package
(for security against illness and provision of income in later life).
 Cont’d
• Belongingness needs relate to social processes. include the need for love and
affection and the need to be accepted by one’s peers.
• A manager can help satisfy these needs by allowing social interaction and by making
employees feel like part of a team or work group.
• Esteem needs- comprise two different sets of needs: the need for a positive
self-image and self-respect, and the need for recognition and respect from others.
• A manager can help address these needs by providing a variety of extrinsic
symbols of accomplishment, such as job titles, nice offices, and similar rewards.
At a more intrinsic level, the manager can provide challenging job assignments and
opportunities for the employee to feel a sense of accomplishment.
• self-actualization needs- involve realizing one’s potential for continued growth
and individual development.
• The self-actualization needs are the most difficult for a manager to address. In
fact, it can be argued that these needs must be met entirely from within the
individual. But a manager can help by promoting a culture wherein self-actualization
is possible.
• For instance, a manager could give employees a chance to participate in making
decisions about their work and the opportunity to learn new things
 Early Theories of Motivation (cont’d)
• Douglas McGregor is best known for proposing two assumptions about
human nature Theory X and Theory Y
• Theory X
• Assumes that workers have little ambition, dislike work, avoid
responsibility, and require close supervision.
• Theory Y
• Assumes that workers can exercise self-direction, desire
responsibility, and like to work.
• To maximize employee motivation, use Theory Y practices—allow
employees to participate in decisions, create responsible and
challenging jobs, and encourage good group relations.
 Early Theories of Motivation (cont’d)
• Herzberg’s Motivation-Hygiene Theory
• Job satisfaction and job dissatisfaction are created by
different factors.
• Hygiene factors: extrinsic (environmental) factors that create
job dissatisfaction.
• Motivators: intrinsic (psychological) factors that create job
satisfaction.
• Attempted to explain why job satisfaction does not result in
increased performance.

• The opposite of satisfaction is not dissatisfaction, but rather

no satisfaction.
Cont’d
• Based on these findings, Herzberg argued that there are two stages in the
process of motivating employees.
• First, managers must ensure that the hygiene factors are not deficient.
• Pay and security must be appropriate, working conditions must be safe,
technical supervision must be acceptable, and so on.
• By providing hygiene factors at an appropriate level, managers do not stimulate
motivation but merely ensure that employees are “not dissatisfied.”
• Employees whom managers attempt to “satisfy” through hygiene factors alone
will usually do just enough to get by.
• Thus managers should proceed to stage two—giving employees the
opportunity to experience motivation factors such as achievement and
recognition.
• The result is predicted to be a high level of satisfaction and motivation.
• Herzberg concluded that the traditional view—the opposite of satisfaction is
dissatisfaction— was wrong.
◾ He believed that the factors that led to job satisfaction were separate and
distinct from those that led to job dissatisfaction.
Exhibit 8–3 Contrasting Views of Satisfaction-Dissatisfaction
 Motivation and Needs
• Three-Needs Theory (McClelland)
• There are three major acquired (innate) needs that are major
motives in work.
1. Need for achievement (nAch)
The drive to excel and succeed
2. Need for power (nPow)
The need to influence the behavior of others
3. Need of affiliation (nAff)
•The desire for interpersonal relationships
 Cont’d
• The need for achievement, the best known of the three, is the desire to
accomplish a goal or task more effectively than in the past.
• People with a high need for achievement have a desire to assume personal
responsibility, a tendency to set moderately difficult goals, a desire for
specific and immediate feedback, and a preoccupation with their task
• The need for affiliation is less well understood. Like Maslow’s
belongingness need, the need for affiliation is a desire for human
companionship and acceptance. People with a strong need for affiliation are
likely to prefer (and perform better in) a job that entails a lot of social
interaction and offers opportunities to make friends
• The need for power has also received considerable attention as an
important ingredient in managerial success.
• The need for power is the desire to be influential in a group and to
control one’s environment.
• Research has shown that people with a strong need for power are likely to
be superior performers, have good attendance records, and occupy
supervisory positions
Contemporary Theories of Motivation

1. Goal-Setting Theory
2. Reinforcement Theory
3. Equity Theory
4. Expectancy Theory
Motivation and Goals
• Goal-Setting Theory
• Proposes that setting goals that are accepted, specific, and
challenging yet achievable will result in higher performance than
having no or easy goals.
• Benefits of Participation in Goal-Setting
1.Increases the acceptance of goals.
2.Fosters commitment to difficult, public goals.
3.Provides for self-feedback (internal locus of control) that guides
behavior and motivates performance (self-efficacy).
 Goal-Setting Theory (cont’d)
• Goal Difficulty is the extent to which a goal is challenging and requires
effort. If people work to achieve goals, it is reasonable to assume that they
will work harder to achieve more difficult goals. But a goal must not be so
difficult that it is unattainable.
• If a new manager asks her sales force to increase sales by 300 percent, the
group may become disillusioned. A more realistic but still difficult goal—
perhaps a 30 percent increase—would be a better incentive.
• Goal Specificity is the clarity and precision of the goal. A goal of
“increasing productivity” is not very specific; a goal of “increasing
productivity by 3 percent in the next 6 months” is quite specific.
• Goal acceptance is the extent to which a person accepts a goal as his or
her own.
• Goal commitment is the extent to which s/he is personally interested in
reaching the goal.
• The manager who vows to take whatever steps are necessary to cut costs
by 10 percent has made a commitment to achieve the goal.
 Motivation and Behavior

• Reinforcement Theory
• Assumes that a desired behavior is a function of its consequences, is
externally caused, and if reinforced, is likely to be repeated.
• Positive reinforcement is preferred for its long-term effects on
performance
• Ignoring undesired behavior is better than punishment which may
create additional dysfunctional behaviors.
 Reinforcement Theory
• why some behaviors are maintained over time and why other
behaviors change?
• reinforcement theory argues that behavior that results in
rewarding consequences is likely to be repeated, whereas
behavior that results in punishing consequences is less likely to
be repeated
• Kinds of Reinforcement in Organizations
• There are 4 basic kinds of reinforcement that can result from
behavior—positive reinforcement, avoidance, punishment, and
extinction.
• Two kinds of reinforcement strengthen or maintain behavior,
whereas the other two weaken or decrease behavior
 cont’d
• Positive reinforcement, a method of strengthening behavior, is a reward or a
positive outcome after a desired behavior is performed. When a manager observes
an employee doing a good job and offers praise
• Other positive reinforcers in organizations include pay raises, promotions, and
awards.
• The other method of strengthening desired behavior is through avoidance. An
employee may come to work on time to avoid a warning. In this instance, the
employee is motivated to perform the behavior of punctuality to avoid an
unpleasant consequence.
• Punishment is used by some managers to weaken undesired behaviors. When an
employee is doing poor work, or interfering with the work of others, the manager
might resort to discipline, or fines.
• Given the counterproductive side effects of punishment (such as hostility), it is
often advisable to use the other kinds of reinforcement if at all possible.
• Extinction can also be used to weaken behavior, especially behavior that has
previously been rewarded.
• When an employee tells an improper joke and the boss laughs, the laughter
reinforces the behavior and the employee may continue to tell improper jokes.
• By simply ignoring this behavior and not reinforcing it, the boss can cause the
behavior to eventually become “extinct.”
 Motivation and Perception
• Equity Theory
• Proposes that employees perceive what they get from a job
situation (outcomes) in relation to what they put in (inputs) and
then compare their inputs-outcomes ratio with the inputs-
outcomes ratios of relevant others.
If the ratios are perceived as equal then a state of equity
(fairness) exists.
If the ratios are perceived as unequal, inequity exists and the
person feels under- or over-rewarded.
• When inequities occur, employees will attempt to do something
to rebalance the ratios (seek justice).
Equity is an individual’s belief that the treatment s/he is
receiving is fair relative to the treatment received by others
Cont’d
• According to equity theory, outcomes from a job include pay,
recognition, promotions, social relationships
• To get these rewards, the individual makes inputs to the job, such as
time, experience, effort, education, and loyalty.
• The theory suggests that people view their outcomes and inputs as a
ratio and then compare it to someone else’s ratio.
• Both the formulation of the ratios and comparisons between them are
very subjective and based on individual perceptions.
• As a result of comparisons, 3 conditions may result:
1.The individual may feel equitably rewarded,
2.Under rewarded, or
3. over rewarded.
• A feeling of equity will result when the two ratios are equal
Cont’d
People who feel underrewarded try to reduce the inequity.
• Such an individual might decrease her inputs by exerting less effort,
increase her outcomes by asking for a raise, distort the original ratios
by rationalizing, try to get the other person to change her or his
outcomes or inputs, Quit their job.
An individual may also feel overrewarded relative to another person.
• This is not likely to be disturbing to most people, but research
suggests that some people who experience inequity under these
conditions are somewhat motivated to reduce it.
• Under such a circumstance, the person might increase his inputs by
exerting more effort, reduce his outcomes by producing fewer units
(if paid on a per-unit basis), distort the original ratios by rationalizing,
or try to reduce the inputs or increase the outcomes of the other
person.
Exhibit 8–8 Equity Theory
 Expectancy Theory

• Expectancy theory suggests that motivation depends on two things—

how much we want something and how likely we think we are to get it.
• Assume that you are approaching graduation and looking for a job. You
see in the ads that ETH airlines is seeking a new vice president with a
starting salary of Brr100,000 per month. Even though you might want
the job, you will not apply because you realize that you have little
chance of getting it.
• Then you see an ad for a management trainee at CBE, with a starting
salary of birr 25,000. You will probably apply for this job because you
want it and you think you have a reasonable chance of getting it
 Motivation and Behavior
• Expectancy Theory
• States that an individual tends to act in a certain way based on the
expectation that the act will be followed by a given outcome
and on the attractiveness of that outcome to the individual.
• Key to the theory is understanding and managing employee goals
and the linkages among and between effort, performance and
rewards.
• Effort: employee abilities and training/development
• Performance: valid appraisal systems
• Rewards (goals): understanding employee needs
Exhibit 8–9 Simplified Expectancy Model
 Motivation and Behavior (cont’d)
• Expectancy Relationships
• Expectancy (effort-performance linkage)
• The perceived probability that an individual’s effort will result in a certain
level of performance.
• Instrumentality/performance-reward linkage
• The perception that a particular level of performance will result in the
attaining a desired outcome (reward).
• For example, if the individual believes that high performance will result in
a pay raise, the performance to-outcome expectancy is high.
• Valence/attractiveness of reward
• The attractiveness/importance of the performance reward (outcome) to
the individual.
• A high performer, for example, may get bigger pay raises, faster
promotions, and more praise from the boss.
• On the other hand, s/he may also be subject to more stress and incur
resentment from coworkers.
• Each of these outcomes also has an associated value, or valence—an index
of how much an individual values a particular outcome.
• If the individual wants the outcome, its valence is positive; if the
individual does not want the outcome, its valence is negative.
 Current Issues in Motivation
Motivating Unique Groups of Workers
Motivating a diverse workforce through flexibility:
• Men desire more autonomy than do women.
• Women desire learning opportunities, flexible work schedules,
and good interpersonal relations.
Motivating Contingent Workers
• Opportunity to become a permanent employee
• Opportunity for training
• Equity in compensation and benefits
 Current Issues in Motivation (cont’d)
• Motivating Professionals
• Characteristics of professionals
• Strong and long-term commitment to their field of expertise.
• Loyalty is to their profession, not to the employer.
• Have the need to regularly update their knowledge.
• Don’t define their workweek as 8:00 am to 5:00 pm.
• Motivators for professionals
• Job challenge
• Organizational support of their work
 Current Issues in Motivation (cont’d)
• Designing Appropriate Rewards Programs
1. Employee recognition programs
• Giving personal attention and expressing interest, approval, and
appreciation for a job well done.
2. Pay-for-performance
• Variable compensation plans that reward employees on the basis
of their performance:
• Piece rates, wage incentives, profit-sharing, and lump-sum
bonuses
 From Theory to Practice:
Guidelines for Motivating Employees

• Use goals • Check the system for equity

• Ensure that goals are perceived as • Use recognition
attainable • Show care and concern for
• Individualize rewards employees
• Link rewards to performance • Don’t ignore money