Unit: 4 Motivation & Leadership

Motivation:
Theories of Motivation –Maslow, Herzberg’s Two
Factor Theory, ERG, McClelland , Equity and
Vroom’s Expectancy Theory
Leadership :
Introduction, Leadership Theories -Trait Theories,
Behavioral Theories and Situational Theories
M
MOTIVATION
OTIVATION IN
IN ORGANIZATIONS
ORGANIZATIONS

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Motivation is one of three key performance elements. In fact,
research suggests that performance is a function of ability,
motivation and opportunity:
Performance = Function {Ability × Motivation ×
Opportunity}

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Motivation results when an individual interacts with a
situation. It’s a state of mind where the individual determines
the level of desire, interest and energy that will translate into
action.
Motivation = Intensity + direction + persistence of effort

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Motivation can be described as the internal force that
impacts the direction, intensity, and endurance of a
person’s voluntary choice of behavior. It consists of −
•Direction − focused by goals.
•Intensity − bulk of effort allocated.
•Persistence − amount of time taken for the effort to
be exerted.
Example − A team leader encourages team members
to work efficiently.

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Features of Motivation:

Motivation is an internal feeling, that is, it defines the

psychological state of a person. It is a continuous process and
we should make sure that it is not disturbed. A person should
be encouraged completely.
Motivation consists of three interacting and dependent
elements −
Needs − The requirements or deficiency which is created
whenever there is physiological imbalance.
Drives − The various camps or events organized to motivate
the employees and give them new opportunities.
Incentives − Employees need to be rewarded for their nice
work in order to keep them encouraged.
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Importance of Motivation
We need to motivate employees because of the following
reasons −
Motivated employee are more quality oriented.
Highly motivated employees are more productive as
compared to other employees.
It helps in achieving three behavior dimension of human
resource namely
• Candidates must be attracted not only to join but also
remain in the firm.
• Employees must perform task in a dependable manner.
• Employees should be creative, spontaneous and
innovative at work.

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 Motivation
Equilibrium
Energizes Behavior
Drives
Compulsions
Deprivation/ Satisfaction Need
Directs Behavior
Disequilibrium
Goals
Organization of Effort
Reaching Equilibrium Drive

Sustains Behavior
Maintaining motivation
Persistance
Ability to change course
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Importance of Feedback 8
Motivation: Its Basic Components
Arousal Direction Maintenance Goal

t
Persis

e nt w o rk
Desire to Comp
li m Good
make a good Work extra hard Persist impression
impression Do spe made
cial fav
ors
Persis
t

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Intrinsic and Extrinsic Motivators

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intrinsic motivation comes from within, and
it’s usually driven by individuals’ needs to do
something for themselves. Each person has
unique desires.
Extrinsic motivation comes from an external
source.

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Needs-Oriented Theories
At its most basic, motivation can be defined as the fulfillment of
various human needs. These needs can encompass a range of human
desires, from basic, tangible needs of survival to complex, emotional
needs surrounding an individual’s psychological well-being.
The most well-known example of a needs-oriented theory of
motivation is Maslow’s Hierarchy of Needs. Maslow
postulated that needs should be fulfilled in a particular order,
with food, water, and shelter in the bottom, most fundamental
two tiers and intangible needs such as fulfillment, self-esteem,
and a sense of belonging in the upper three tiers. While this
framework makes a certain amount of logical sense, critics
have noted that there have been minimal data that suggest
employees strive to satisfy needs in the workplace in
accordance with this hierarchical framework. But the
fundamental idea behind Maslow’s model is that individuals
have various tangible and intangible desires that can be
leveraged in the use of motivational incentives.
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Maslow’s Hierarchy of Needs Theory:

Psychologist Abraham Maslow proposed Maslow’s Hierarchy of Needs

 theory in psychology in 1940. Maslow’s hierarchy of needs is one of the
earliest and best-known of motivation theories.

This theory was produced in order to answer the question “What

motivates an individual”. Every second need comes to force when the
first need is satisfied completely. Maslow explained the hierarchy of
needs by grouping them into two: deficiency needs and growth needs.

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1.Physiological Needs:

Every individual needs to take care of the basic requirements

required to sustain. These requirements include food to eat,
clothing to wear and shelter to live in. These necessities are
relatively independent of each other but are finite.

2.Safety Needs
Everybody wants to stay in a protected environment with minimal
danger so that they can have a peaceful life. Safety needs
basically includes protection from physiological danger like
accident and having economic security like bank accounts, health
insurance
In an enterprise, it includes job security, salary increment, etc.
The managerial practice to satisfy this involves offering pension
scheme, provident fund, gratuity etc.
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3.Social Needs:
We have all heard that man is a social animal, we want to be
there with those people where we are loved and we are
accepted as we are; nobody wants to be judged. This is a
common requirement every human desires.
This theory helps managers to think about encouraging their
employees by identifying employee needs. In short, it
presents motivation as constantly changing force, expressing
itself to the constant need for fulfilment of new and higher
levels of needs.

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4.Self Esteem(status, prestige)
Esteem means the typical human desire to be accepted and
valued by others. People often involve in a profession or hobby
to gain recognition, earn fame and respect. According to
Maslow, the needs of humans have strict guidelines - the
hierarchies rather than being sharply separated, are interrelated.
This means that esteem and the consequent levels are not strictly
separated but are closely related.

5.Self-Actualization
Self-actualization means realizing one’s full potential. Maslow
describes this as a desire to complete everything that one can, to
become the most that one can be

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Herzberg's motivation-hygiene theory/ two
factor theory
• The two-factor theory (also known as Herzberg's motivation-hygiene
theory and dual-factor theory) states that there are certain factors in
the workplace that cause job satisfaction while a separate set of
factors cause dissatisfaction, all of which act independently of each
other
• In 1959, Frederick Herzberg, a behavioural scientist proposed a two-
factor theory or the motivator-hygiene theory. According to
Herzberg, there are some job factors that result in satisfaction while
there are other job factors that prevent dissatisfaction. According to
Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the
opposite of “Dissatisfaction” is “No Dissatisfaction”.
•

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Herzberg classified these job factors into two
categories-

• Hygiene factors- Hygiene factors are those job factors which are

essential for existence of motivation at workplace. These do not lead
to positive satisfaction for long-term. But if these factors are absent /
if these factors are non-existant at workplace, then they lead to
dissatisfaction. In other words, hygiene factors are those factors
which when adequate/reasonable in a job, pacify the employees and
do not make them dissatisfied. These factors are extrinsic to work.
Hygiene factors are also called as dissatisfiers or maintenance
factors as they are required to avoid dissatisfaction. These factors
describe the job environment/scenario. The hygiene factors
symbolized the physiological needs which the individuals wanted and
expected to be fulfilled. Hygiene factors include:

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• Pay - The pay or salary structure should be appropriate and reasonable. It
must be equal and competitive to those in the same industry in the same
domain.
• Company Policies and administrative policies - The company policies should
not be too rigid. They should be fair and clear. It should include flexible
working hours, dress code, breaks, vacation, etc.
• Fringe benefits - The employees should be offered health care plans
(mediclaim), benefits for the family members, employee help programmes,
etc.
• Physical Working conditions - The working conditions should be safe, clean
and hygienic. The work equipments should be updated and well-maintained.
• Status - The employees’ status within the organization should be familiar
and retained.
• Interpersonal relations - The relationship of the employees with his peers,
superiors and subordinates should be appropriate and acceptable. There
should be no conflict or humiliation element present.
• Job Security - The organization must provide job security to the employees

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• Motivational factors- According to Herzberg, the hygiene factors
cannot be regarded as motivators. The motivational factors yield
positive satisfaction. These factors are inherent to work. These
factors motivate the employees for a superior performance. These
factors are called satisfiers. These are factors involved in performing
the job. Employees find these factors intrinsically rewarding. The
motivators symbolized the psychological needs that were perceived
as an additional benefit. Motivational factors include:

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Cont…

• Recognition - The employees should be praised and recognized for

their accomplishments by the managers.
• Sense of achievement - The employees must have a sense of
achievement. This depends on the job. There must be a fruit of some
sort in the job.
• Growth and promotional opportunities - There must be growth and
advancement opportunities in an organization to motivate the
employees to perform well.
• Responsibility - The employees must hold themselves responsible for
the work. The managers should give them ownership of the work.
They should minimize control but retain accountability.
• Meaningfulness of the work - The work itself should be meaningful,
interesting and challenging for the employee to perform and to get
motivated.

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ERG Theory of Motivation

• To bring Maslow’s need hierarchy theory of motivation in synchronization

with empirical research, Clayton Alderfer redefined it in his own terms. His
rework is called as ERG theory of motivation. He recategorized Maslow’s
hierarchy of needs into three simpler and broader classes of needs:
• Existence needs- These include need for basic material necessities. In short,
it includes an individual’s physiological and physical safety needs.
• Relatedness needs- These include the aspiration individual’s have for
maintaining significant interpersonal relationships (be it with family, peers or
superiors), getting public fame and recognition. Maslow’s social needs and
external component of esteem needs fall under this class of need.
• Growth needs- These include need for self-development and personal
growth and advancement. Maslow’s self-actualization needs and intrinsic
component of esteem needs fall under this category of need.

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Difference between Maslow Need
Hierarchy Theory and Alderfer’s ERG
Theory
• ERG Theory states that at a given point of time, more than one need
may be operational
• ERG Theory also shows that if the fulfillment of a higher-level need is
subdued, there is an increase in desire for satisfying a lower-level
need.
• According to Maslow, an individual remains at a particular need level
until that need is satisfied. While according to ERG theory, if a higher-
level need aggravates, an individual may revert to increase the
satisfaction of a lower- level need. This is called frustration-
regression aspect of ERG theory. For instance- when growth need
aggravates, then an individual might be motivated to accomplish the
relatedness need and if there are issues in accomplishing relatedness
needs, then he might be motivated by the existence needs. Thus,
frustration/aggravation can result in regression to a lower-level need.
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Cont..

• While Maslow’s need hierarchy theory is rigid as it assumes that the

needs follow a specific and orderly hierarchy and unless a lower-level
need is satisfied, an individual cannot proceed to the higher-level
need; ERG Theory of motivation is very flexible as he perceived the
needs as a range/variety rather than perceiving them as a hierarchy.
According to Alderfer, an individual can work on growth needs even
if his existence or relatedness needs remain unsatisfied. Thus, he
gives explanation to the issue of “starving artist” who can struggle for
growth even if he is hungry.

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 Need Theories: A Comparison
Growth needs

5. Self-actualization needs
• Growth needs
4. Esteem needs
Deficiency Needs

3. Social needs • Relatedness needs

2. Safety needs
• Existence needs

1. Physiological needs

Maslow’s need hierarchy theory Alderfer’s ERG theory

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ERG Theory
(Aldefer)

Relatedness Needs

Existence Needs Growth Needs

Satisfaction/Progression
Frustration/Regression
Satisfaction/Strengthening

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VROOM’S Expectancy Theory: An
Overview
• In 1964, Canadian professor of psychology Victor Vroom from the
Yale School of Management developed this theory. In it, he studied
people’s motivation and concluded it depends on three
factors: expectancy, instrumentality and valence.

• Vroom distinguishes between the effort people put in, their

performance and the final result. His theory primarily relates to
motivation within a work environment. When employees can make
choices in their work, Victor Vroom argues that they will mostly
choose that what motivates them the most.

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 Expectancy Theory: An Overview

Effort Skills and

Expectancy abilities

Performance X
Instru- Job
mentality Motivation Performance
Rewards X
Valence of
Rewards Role perceptions
and opportunities

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Expectancy Model:
Components

Expectancy: The degree to which you

expect that hard work (effort)
will lead to good performance
or high accomplishments
Instrumentality: The perception that if you
perform well you will be
rewarded
Valence: How much do you value the
rewards you may receive
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 Expectancy Theory, con’t

• Force: the motivation to choose a particular course of action.

Force  E  (V * I )
Where: E= Expectancy (probability that effort leads to
performance)
V=Valence (rating of how satisfying various rewards
will be)
I=Instrumentality (relationship between taking this
option and gaining this reward)
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Application of Expectancy Theory

• Clarify expectancies between effort and performance and follow

through with rewards.
• Pay for performance
• Stock option plans and other incentive programs
• Provide valued rewards
• Cafeteria-style benefits

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McClelland's Need theory:

• McClelland's Human Motivation Theory states that every person has

one of three main driving motivators: the needs for achievement,
affiliation, or power. These motivators are not inherent; we develop
them through our culture and life experiences. Achievers like to solve
problems and achieve goals.
• According to David McClelland, people have motivating drivers that
are directly linked to need regardless of age, gender, culture or race.
As a result of the McClelland Motivation Theory, David McClelland
identified three types of motivational need:
1.Need for achievement
2.Need for power
3.Need for affiliation

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Motivating Jobs Through Job Redesign

• Scientifically managed jobs: boring,

repetitive, few skills utilized
• Job Enlargement: add more tasks of similar
skill level to the job Horizontal Loading
• Job Enrichment: add more responsibility
and autonomy to the job Vertical Loading

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 Job Enlargement and Job Enrichment: A Comparison
(high)
Enlarged Job

Level of Responsibility
(vertical job loading)
Job enlargement adds more tasks
at the same level of responsibility.

(high)
Task Task Task Task
Level of Responsibility

1 2 3 4
(vertical job loading)

Standard Job (low)

(low) Number of Tasks (high)
(horizontal job loading)
(high)
Level of Responsibility
Task Task (vertical job loading) Enhanced Job
1 2 Job enrichment adds
(low)
more responsibility
to the same number
(low) Number of Tasks (high) Task Task
of tasks.
(horizontal job loading) 1 2

(low)
(low) Number of Tasks (high)
(horizontal job loading)
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 Job Characteristics model
Job Characteristics Critical Psyc. States Job Outcomes

Internal work

}
Skill Variety Experienced
Meaningfulness of motivation
Task Identity
Work Job satisfaction
Task Significance
Growth
Responsibility for Satisfaction
Autonomy work outcomes Low absenteeism
High quality
Feedback Knowledge of performance
Results

Growth Need Strength

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Enriching Jobs: Some Suggestions From
the Job Characteristics Model

Principles of Job Description Core Job Dimensions

Incorporated

1. Combines jobs enabling worker to perform Skill variety

the entire job Task identity

2. Establishes client relationships allowing providers Skill variety

of a service to meet the recipients Autonomy
Feedback

3. Load jobs vertically allowing greater responsibility Autonomy

an control over work

4. Open feedback channels giving workers knowledge Feedback

of the results of their work

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