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 CLASSICAL THEORY

• Assumptions:
• How a specific job was done, what steps were taken by an employee to
complete the work, and the amount of time it took a worker to complete
a task using different methods
• Determine the most effective way of completing a task
• Critics:
• Harmful effects on workers
• Not created mental revolution
• Created an attitude among managers
• Unrealistic to expect that standardization among emotional beings
 NEO-CLASSICAL THEORY

• The role of management is to use employees to get

things done in organizations
• Related to the best way to motivate, structure, and
support employees within the organization
• “Organizations did not and could not exist as self-
contained islands isolated from their environments”
Chester Bernard
 Hawthorne Effect
(Elton Mayo)

Hawthorne experiment at Western

Electric's Hawthorne plant in 1927
•To determine the optimal amount of
lighting, temperature, and humidity
for assembling electronic components
•Further experiments over the next
five years, to test that human factors
played a large role in workplace
motivation and productivity
• Relay assembly experiment:
• researchers chose two women as test subjects and asked
them to choose four other workers to join the test group
• giving two 5-minute breaks, and then changing to two 10-
minute breaks
• providing food during the breaks
• shortening the day by 30 minutes, shortening it more,
returning to the first condition
• Suggestions:
• Social factors were an important factor for
managers to consider i.e. employee relationships
• Employees could be structured in a way that they
could share tasks, information, and knowledge with
one another
 Hierarchy of Needs Theory
(Abraham Maslow)

• Assumptions:
• Man is a wanting being
• Needs have a definite hierarchy of importance
• Once needs on a lower level are fulfilled, the next level will
emerge and demand satisfaction
• A satisfied need no more acts as a motivator
• As one need is satisfied, another replaces it
 ERG THEORY

• Clayton Alderfer modified Maslow’s Hierarchy of Needs and

distinguished three categories of human needs that influence
workers’ behavior
• Existence Needs: physiological and safety needs i.e.
food, water, air, salary, welfare
• Related Needs: social and external esteem i.e.
relationships with family, friends, co-workers,
employers
• Growth Needs: internal esteem and self-actualization
i.e. desires of creativity, productive, and achievement
• Assumptions:
• Needs are not stepped in any way
• The 3 categories may vary for each
individual
• If a higher level need remain unfulfilled, the
individual may regress to lower level needs
that appear easier to satisfy
 X-Y THEORY
(DOUGLAS MCGREGOR)

• Two contrasting models of workforce

motivation
• There are two types of employees that
managers may encounter in the
workplace
 Theory Z
(William Ouchi)
 Achievement Motivation Theory
(David I. McClelland)

• Explain how different types of motivation affect

people’s performance
• The levels of needs vary in person
• A person’s motivation and effectiveness in certain job
functions are influenced by 3 needs
• The theory helps to identify the “Dominant
Motivators” of people
1. Need for Achievement: strong needs to set and
accomplish challenging goals, takes risks to accomplish
goals, like to receive feedback on their progress, like to
work individually
2. Need for Affiliation: wants to be liked and belong to
group, often go along with the rest of the group, favor
collaboration over competition, doesn’t take risk
3. Need for Power: wants to influence others, likes to win
arguments, enjoys competition and winning, desires status
and recognition
EXPECTANCY THEORY OF MOTIVATION
(VICTOR H. VROOM)

•It provides an explanation to why an individual

cognitive process that evaluates the motivational force
of the different behavioral options based on the
individual’s own perception of the probability of
attaining his desired outcome
Motivational force can be explained by the following equation:

MF = Expectancy x Instrumentality x Valence

• Expectancy = effort-performance relation; the perception of
the individual that effort that put forward will result in the
attainment of the performance
• Instrumentality = performance-reward relation; the
individual evaluates the likelihood that achieving the
performance level will result in attainment of reward
• Valence = the value that individual associates with the
outcome
• Assumptions:
• There is a positive correlation between efforts and
performance
• Favorable performance will result in a desirable reward
• The reward will satisfy the need
• The desire to satisfy the need is strong enough to make the
effort worthwhile
• Hypothesis:
If a worker sees high productivity as a path leading to the
attainment of one more of his personal goals, he will tend to
be a high producer. If he sees low productivity as a path to the
achievement of his goals, he will tend to be low producer
 Two-Factor Theory
(Frederick Herzberg)

• Motivation and Hygiene factors

• based on the idea of how hygiene factors and
motivators are used to provide satisfaction to
employees in work environments
• The two-factor theory is based on the assumption
that there are two sets of factors that influence
motivation in the workplace by either enhancing
employee satisfaction or hindering it
• ‘Hygiene' to describe factors that cause dissatisfaction
in the workplace, are extrinsic (or independent of the
work itself

• Motivators or satisfiers are linked to employee

motivation and arise from intrinsic, or dependent,
conditions of the job itself.
• Keywords:
• KITA (positive and negative)
• Motivation (hygiene and motivator)
• Job attitude (job satisfaction and job
dissatisfaction)
• Job enrichment VS. Job enlargement
• Personnel management should be to invent the
most appropriate incentive system and to
design the specific working conditions in a way
that facilitates the most efficient use of the
human machine
• Proper attitudes will lead to efficient job and
organizational structure
• Job enrichment provides the opportunity for the
employee’s psychological growth, while job
enlargement makes a job structurally bigger