LEADERSHIP & ORGANISATIONAL

BEHAVIOUR
Dr(mrs) f. ellis
 LECTURE CONTENTS

Part (UNIT) Two: individuals in

organisations

• individual differences and personality

• Perception and attribution
• The nature of learning
• The nature of motivation at work
Lecture (unit) five:
motivation in the work setting
(INDIVIDUALS In
organisations)
 LECTURE OBJECTIVES

After completing this lecture, you should

be able to:
 Define motivation
 Know the main schools of thought and
prime contributors to the theory of
workplace motivation
 Appreciation the application of
motivation theories to practice
introduction

Motivation represents the forces acting

on or within a person that causes the
person to behave in a specific, goal-
directed manner.
Because the specific work motives of
employees affect productivity, one of
management’s job is to channel employee
motivation effectively toward achieving
organisational goal.
 Introduction cont’d

Surprisingly, many managers are not sure which

rewards their employees value. As a result,
experts might not agree everything that motivates
employees-and the effects of working conditions
over their careers- but they do agree that an
organisation must:
 Attract people to the organisation and
encourage them to remain in it;
 Allow people to perform their tasks for which
they were hired; and
Introduction cont’d

Stimulate people to go beyond routine

performance and become creative and innovative
at work.
The observed differences in job performance
among people doing identical work reflect
differences in individual knowledge, skills and
abilities.
Variations in work performance among
employees doing identical work can also reflect
differences in the extent to which individuals are
prepared to direct their occupational energies.
 Introduction cont’d

Employee performance is contingent upon two
different kinds of variables:
1.the ability and skill of the individual,
2.His or her motivation to make use of this ability
and skill in the actual performance of the paid work.

This contingency is often expressed by the formula:
Performance = ƒ (ability x motivation)
According to this principle, no task can be performed
unless the person who is to carry it out has the ability
to do so.
 Introduction cont’d

 Ability is the person’s talent (e.g. intellectual

competence and manual competence) for
performing goal-related tasks.
 The word ‘motivation’ comes from the latin
word ‘movere’, ‘to move’ and organisational
psychologists have identified factors that move
employees towards accomplishing
organisational goals.
Introduction cont’d

Work motivation can be defines as the

psychological forces within a person that
determines the direction of that person’s behaviour
in an organisation.
(George and Jones, 2008:183)

Motivation is a cognitive decision making process

that influences the persistence and direction of goal
directed behaviour.
(Bratton et al., 2007:248)
Element in the definitions are:

(1). ‘effort’ - a measure of intensity that

maximises employees potential capacity to work
in a way that is appropriate to the job.
(2). ‘persistence’ – the application of effort
work-related tasks employees display over a time
period.
(3). ‘direction’ – emphasises that persistent high
level of work-related effort should be channelled
in a way that benefits the work environment.
Element in the definitions

 The issue of motivating employees is as old

as management itself, and underscores the
nature of the employment relationship.

 The employment contract represents the

exchange of effort or knowledge for pay.
 NEEDS AND EXPECTATIONS AT WORK

The three-fold classification for the motivation at

work are:
 Economic rewards – such as pay, fringe
benefits, pension rights. This is an instrumental
orientation to work and concerns ‘other things’
 Intrinsic satisfaction – derived from the nature
of the work itself, material goods and security,
and personal growth. This is a personal
orientation to work and is concerned with
‘oneself’.
NEEDS AND EXPECTATIONS AT WORK CONT’D

Social relationships – such as friendship, group

working, and the desire for affiliation. This is a
relational orientation to work and concerned
with ‘other people’.

NEEDS AND
Economic EXPECTATIO Intrinsic
rewards NS satisfaction
AT WORK

Social
relationships
THEORIES OF MOTIVATION

 Motivation theories are central and important to

the discipline of organisational behaviour.
 However, many of the theories underlying the
concept of motivation at work still date back to
the 1960s and 1970s.
 There is no one theory of motivation and
therefore this lecture will review both
traditional and contemporary theories.
INTRINSIC MOTIVATION

Intrinsic motivated work behaviour stems from a

person’s ‘internal’ desire to do something, or is
related to ‘psychological’ rewards such as
opportunity to use one’s ability, receiving
recognition and is therefore usually ‘self applied’
e.g. One may keenly participate in hobbies or
sports without any thought of financial reward
because it is expected to provide a personal
satisfaction.
In the workplace, pure interest in a project or a
positive recognition from colleagues are examples
of intrinsic motivation.
EXTRINSIC MOTIVATION

 Extrinsic motivated work behaviour stems

from outside the individual, and generally
applied by others higher in the
organisation’s hierarchy and includes
tangible rewards such as pay, bonuses, and
promotion.
INTRINSIC AND EXTRINSIC MOTIVATION
THEORIES OF MOTIVATION

Content theories attempt to identify and explain the

factors which motivate people. The theories thus
assume that all workers possess a common set of
basic ‘needs’
A need is a requirement for survival and well-being.
Content theories of motivation: workers with needs.
The four known theories are:
(1) Maslow’s hierarchy of needs
(2) Herzberg’s ‘two-factor’ need theory
(3) McClelland’s ‘three needs’ theory
(4) Alderfer’s ERG theory
 THEORIES OF MOTIVATION

Process theories focus on how a variety of

personal factors interact and influence human
behaviour.
Expectancy theory (Vroom)
Equity theory (Adams)
Goal Theory (Locke)
 Other contributions to work motivation
involves additional motivational theories that
can be used to try to understand work
motivation. They include:
THEORIES OF MOTIVATION

 Behaviourist theories assume that

behaviour is determined by consequences.
e.g Classical conditioning theory (Pavlov’s)
Operant conditioning (Skinner)
 Social- cognitive theory (SCT) assume that a
person’s factors and behaviour may influence
motivation.
e.g. learning (vicarious)(Bandura)
Content theories


The Content theories are:

Maslow’s hierarchy of needs

Herzberg’s ‘two-factor’ need theory

McClelland’s ‘three needs’ theory

Alderfer’s ERG theory

MASLOW’S HIERARCHY OF NEEDS

 Maslow proposed that people have a built-

in set of five basic needs, which can be
arranged as shown in the diagram.
 The lower-level needs (psychological,
safety and social) are at first predominant:
people’s behaviour is directed towards
satisfying these needs.
 Once the lower-level needs are met, people
direct their behaviour toward satisfying
their need for self-esteem and self-
actualisation (the ultimate motivator).
MASLOW’S HIERARCHY OF NEEDS cont’d

The needs are hierarchically ranked according to

their salience.
Hierarchy of Needs Theory
Physiological needs – a person’s needs for
food, drink, shelter, sex and other physical
requirements;
Safety needs – a person’s needs for security
and protection from physical and emotional
harm, as well as assurance that physical needs
will continue to be met.
 MASLOW’S HIERARCHY OF NEEDS cont’d

Social needs – a person’s needs for affection,

belongingness, acceptance, and friendship.
Esteem needs – a person’s needs for internal
esteem factors, such as self-respect, autonomy,
and external esteem factors, such as status,
recognition and attention.
Self-actualisation – a person’s needs for growth,
achieving one’s potential, and self-fulfilment; the
drive to become what one is capable of becoming.
MASLOW’S HIERARCHY OF NEEDS cont’d
Assessment of the theory (maslow’s HIERARCHY
OF NEEDS)

 Not everyone is motivated by only things that go

on inside the organisation. There are many people
who self-actualise outside the work setting such as
participating in a wide variety of other leisure
activities.
 People at different stages of their lives will be
motivated by different things.
 The amount of satisfaction needed at a specific
level before a higher level is activated is not
known.
HERZBERG’S ‘TWO-FACTOR’ NEED THEORY
(MOTIVATION-HYGIENE THEORY)
 The two factor theory of motivation are
categorised as motivators and hygiene
factors.
 Hygiene factor are those that, if absent,
caused dissatisfaction. They are
predominately concerned with the context
within which the job is carried out and other
extrinsic issues. They include:
 HYGIENE factors

Salary
Working conditions
Relationship with supervisor
Company policy and administrative
procedures
Relationship with peers
Supervision
Relationship with subordinates
Security
motivating factors


Motivating factors were those that could motivate the
individual to improve their work performance and
mainly concerned with the content of work as well as
the way in which it forms a meaningful whole. They
include:
Achievement
Work itself
Responsibility
Advancement
Growth
Assessment of the theory ((MOTIVATION-HYGIENE
THEORY)

It is perceived that cultural differences can affect the

motivation of employees. However, Herzberg believes
that despite cultural differences, motivators and hygiene
affect workers similarly around the world.
It does not provide for individual differences. For
example close supervision may be resented by some yet
welcomed by others.
Some researchers have found factors that can contribute
to both satisfaction and dissatisfaction, whereas others
have found that motivator factors can contribute to
dissatisfaction and hygiene factors con contribute to
satisfaction.
 MCCLELLAND’S ‘THREE NEEDS’ THEORY


McClelland (1961) needs theory identifies three basic
needs that people develop and acquire from life
experiences. Employees also differ in the extent to which
they experience drives or needs, which are learned and
reinforces through childhood learning and social norms.

need for achievement (nAch), - a learned need in which
people want to accomplish reasonably challenging goals
through their own efforts, like to be successful in
competitive situations, and desire feedback regarding
their success.
MCCLELLAND’S ‘THREE NEEDS’ THEORY

The achievement motivation model states that

people are motivated according to the strength of
their desire to perform in terms of a standard of
excellence or to succeed in competitive situations.
Characteristics of High Achievers
Self achievers have three major characteristics.
(1) Set their own goals, and seek the challenge of
making tough decisions.
MCCLELLAND’S ‘THREE NEEDS’ THEORY

(2) Avoid selecting extremely difficult goals.

They prefer moderate goals that are neither so
easy that attaining them provides no satisfaction
nor difficult that attaining them is more of a
matter of luck than ability.
(3) Prefer tasks that provide immediate feedback.
Because of the importance of the goals to them,
they like to know how well they’re doing.
MCCLELLAND’S ‘THREE NEEDS’ THEORY


affiliation (nAff) - a need in which people seek
approval from others, conform to their wishes
and expectations, because they want to form
positive relationships with others and as a result
avoid conflict and confrontations;

power (nPow) – a need in which people want to
control their environment, including people and
material resources, to benefit either themselves
(personalised power) or others (socialised
power).
 ALDERFER’S ERG THEORY

 The ERG theory (clay Alderfer) suggests that

needs can be divided into three basic
categories:
existence (E),relatedness (R) and growth (G).
Existence needs include nutrition, safety and
material requirements
Relatedness needs involve an individual’s
relationship with family and friends, and
colleagues at work.
ALDERFER’S ERG THEORY

 Growth needs reflect a desire for personal

psychological growth and development.
Has its roots in Maslow’s work,
Suggests that more than one need could be
functioning at the same time.
Suggests that managers should seek to
motivate by addressing all three levels of
need.
COMPARISON - MASLOW’S NEED
HIERARCHY AND ALDERFER’S ERG THEORY

Quite similar to Maslow’s theory.

The theory does not assume a progression up a
hierarchy as Maslow’s. Because all three levels
might be important at the same time , and
therefore can be thought of in terms of a
continuum.
Alderfer’s theory suggests that growth needs are
actually more important when satisfied, whereas
Maslow argued that when it is fulfilled, a need
become less important to the individual.
MASLOW’S NEED HIERARCHY AND ALDERFER’S ERG
THEORY
PROCESS THEORIES OF MOTIVATION

The Process theories are:

Expectancy theory (Vroom)
Equity theory (Adams)
Goal Theory (Locke)
 Vroom’s EXPECTANCY THEORY

Expectancy theory (found in the work of Lewin,

popularised by Vroom (1964) and developed by
Porter and Lawler) – is a motivation based on the
idea that work effort is directed toward
behaviours that people believe will lead to
desired outcomes.
Expectancy theory has three components:
 EXPECTANCY THEORY

Expectancy – whether there is a connection between

effort and their performance. The employee thinks that
trying hard will lead to performance at a high level.
Instrumentality – the perceived probability that
performance (such as higher productivity) will lead to
those valued outcomes (such as higher pay). The
employee perceives that she or he must perform the
desired behaviours at a high level to obtain these
outcomes.
Valence – that expected net value of the outcomes that
flow from the effort. The employee wants outcomes has to
offer.
 THIS IMPLIES THAT:

Expectancy, or effort- performance linkage, is the probability

perceived by an individual that exerting a given amount of
effort will lead to a certain level of performance
Instrumentality, or performance –reward linkage, is the
degree to which an individual believes that performing at a
particular level is instrumental in attaining the desired outcome.
Valence , or attractiveness of reward, is the importance that an
individual places on the potential outcome or reward that can
be achieved on the job. Valence considers both the goals and
needs of the individual.
If just one of the three factors – expectancy, instrumentality,
or valence – is zero, motivation will be zero.
EXPECTANCY THEORY
 Assessment of the theory

 Researchers are of the view that the model

tries to predict choice or the amount of
effort an individual will expend on one or
more tasks. However, there is little
agreement about what constitute choice or
effort for different individuals.
 Therefore this important variable is difficult
to measure accurately.
 Adam’s EQUITY THEORY

A theory (Adam, 1965) that explain how people

develop perceptions of fairness in the distribution
and exchange of resources.
Outcome/input ratio

In equity theory, there is a relationship between what
an employee gets from the job (outcome - e.g pay,
work conditions, fringe benefits, job security,
satisfaction, social recognition) and what the
employee contributes to the job (inputs e.g. time,
effort, talent, loyalty, level of education, training,
attendance etc.).
 EQUITY THEORY

According to the theory, employees perceive effort and

reward or outcome not in absolute but in relative terms
in the form of ratio.
Outcome (self) : Outcome (other)
Inputs (self) : Inputs (other)
The other person, called referent by Adams, is simply
another employee or group of employees perceived to
be similar to oneself.
Individuals therefore form a ratio of their inputs to
outcomes in their job and then compare the value of
that ratio with the value of the ratio for other
individuals in similar jobs.
EQUITY THEORY
 EQUITY THEORY

 Much research on equity theory has

concentrated on its application to pay and
rewards.
 Managers are not in the position to judge on
behalf of employees what determines an
equitable situation, and they cannot know
against what or whom the comparison is made.
 However, the theory provides a useful
mechanism for considering the significance of
equity between employees.
Locke’s GOAL-SETTING THEORY

The theory (Locke, 1968) assumes that

participatory goal setting and communicating
accurate information on work performance can
be positive motivators for employee.
Goal setting: the process of motivating
employees and clarifying their role perceptions
by establishing performance objectives.
GOAL-SETTING THEORY

 Assumptions
Challenging goals will produce higher
performance than less challenging goals
Specific challenging goals will produce higher
performance than no goals or vague or general
goals such as ‘do your best’
Goal setting with feedback on goal attainment
will produce performance than goal setting alone.
Employees participation in goal-setting will
produce higher performance than no participation.
GOAL-SETTING THEORY

Management by objectives (MBO) –

 is one of the best known a practical application of
the reasoning behind the notion of goal setting
theory.
 It is a participative goal-setting process in which
organisational objectives are cascaded down to work
units and individual employees – therefore involves:
 a one-on-one negotiation session between a
supervisor and a subordinate in order to set
concrete, objective goals for the employees
performance (SMART).
 GOAL-SETTING THEORY
 One of the best supported theories in
organisational behaviour and management.
 However, in some context, it is difficult to
specify goals, making it difficult for individuals
to maintain performance targeted at specific
goals and over an extended period.
 Goal setting represents an individual level
process, but most tasks within the organisation
require groups of people to co-operate in order
to achieve them, and so difficult to provide
enough individual control.
 Classical conditioning(pavlov)

 An approach to learning which demonstrates

that when conditioned stimulus (bell) associated
with an unconditioned stimulus (food) over
several repetitions, results in a conditioned
response.
 However, the theory does not effectively
explain the wide variety of more complex
purposeful behaviour.
Operant conditioning: REINFORCEMENT THEORY

 An approach to learning based on

reinforcement.
 The theory says that behaviour is a
function of its consequences.
 The theory ignores factors such as goals,
expectations, and needs.
 The theory is based on the assumption that
the encouragement of particular
behaviours through the application of
positive and/or negative rewards.
 REINFORCEMENT THEORY

 This means that people will most likely

engage in desired behaviours if they are
rewarded for doing so; and behaviour that is
not rewarded or that is punished is less likely
to be repeated.
 The reinforcement process involves four
different individual processes that are
differentiated through their reward:
 Positive reinforcement: the process of
administering particular responses to increase
the likelihood of the target behaviour
REINFORCEMENT THEORY

Negative reinforcement: the process of

removing particular responses to increase the
likelihood of the target behaviour occurring.
Punishment: the administration of responses
that reduces the likelihood of the target
behaviour occurring.
Extinction: The removal of a response with
the result that the likelihood of the target
behaviour decreases.
CONTEMPORARY THEORY: social – cognitive theory

The theory assumes that cognitive elements such as social

influences, observation and others influence behaviour.
Therefore, vicarious learning - learning that occurs when
a person learns a behaviour by watching another person
perform the behaviour is part of organisational life.
Vicarious learning works with positive as well as negative
experiences of others, therefore conditions such as
observability, memory for the behaviour and/or lesson
learned, relevant ability and opportunity to apply the
lesson learned, presence of consequences etc. are
necessary.
 FROM THEORY TO PRACTICE

 Implementing motivational theory successfully in

the workplace is a challenge and therefore
managers cannot simply transplant one of the
theories discussed in this lecture and apply it in
its pure form.
 For this reason, motivation interventions must be
based on employees needs. For example,
 What factors will motivate a working mothers
with young children.
 FROM THEORY TO PRACTICE cont’d
Mangers must be sensitive to the differences in individual
needs and values among the people they manage. Distinct
types of worker activity will require a fine-tuning of
particular theories. This can include:
Different strategies for workers of the core as opposed to
the periphery employee
Different strategies for knowledge workers as opposed to
more routine workers
Application areas include:
Reward design;
Job design;
Leadership styles
REWARD DESIGN

Reward design should ensure that employees

are given rewards that they value
This relates to aspects of extrinsic
motivation to expectancy and equity
theories. e.g. employees who provide
outstanding customer service get a cash
bonus.
Membership and seniority-based rewards.
REWARD DESIGN

Job Status-Based rewards – linked to job

evaluation which involves evaluating the
worth of each job in terms of the required
skill, effort, responsibility and working
conditions etc. It tries to maintain
internal equity and external equity.
Competency-Based Rewards.
Team Reward
 LEADERSHIP STYLE

Leadership style is an important feature of motivation:

Studies suggest that managers need to develop leadership
style that creates autonomy for knowledge workers as well as
encourages employees to set goals that are specific,
measurable, attainable, realistic and timed (SMART) in
relation to goals set.
Managers need to treat employees fairly and equitably in
comparison to one another and compares favourably with
those in other organisations of a similar type.
Employees need to provide accurate and complete
information on the organisation’s policies in relation to
motivation in order to ensure that they perceive and
understand them accurately
COMPENSATION AND REWARDS
Compensation
is the HRM function
that deals with
every type of
reward individuals
receive in
exchange for
performing
organisational
tasks.
COMPENSATION AND REWARDS cont’d

It is the chief reason why individuals seek

employment.
It is an exchange relationship. Employees trade
their labour/services and loyalty for financial and
non-financial compensation.
It is the set of rewards that organisations
provide to individuals in return for their
willingness to perform various jobs and tasks
within the organisation.
 COMPENSATION

Financial Compensation
(1) Direct
Wages; Salaries
Commission; Bonuses
(2) Indirect
Insurance Plans: Life, Health, Surgical, Dental,
Casualty, etc.
Social Assistance Benefits: Retirements Plans, Social
Security Workers Compensation Educational
Assistance, Employee Services etc.
Paid Absence: Vacation, Holidays, Sick Leave etc.
 COMPENSATION
Non Financial
(1) The Job
Interesting Duties; Challenges
Responsibility; Opportunity for Recognition
Feeling of Achievement
Advancement Opportunities
(2) Job Environment
Sound Policies; Competent Supervision;
Appropriate Status Symbols;
Comfortable Working Conditions; Flextime;
Compressed Workweek; Job Sharing; Cafeteria
VARIOUS ASPECTS OF A COMPENSATION (REWARD)
SYSTEM
COMPENSATION AND REWARD

FINANCIAL NON FINANCIAL

COMPENSATION COMPENSATION

Indirect
Direct Insurance Plans: The Job Job Environment
Wages Life, Health, Surgical, Interesting Sound Policies
Salaries Dental, Casualty, etc Duties Competent
Commissio Social Assistance Supervision
Challenges
n Benefits: Appropriate Status
Retirements Plans, Responsibility Symbols
Bonuses Opportunity
Social Security Comfortable
Workers for Working
Compensation Recognition Conditions
Educational Feeling of Flextime
Assistance, Employee Achievement Compressed
Services Advancement Workweek
Paid Absence: Job Sharing,
Vacation, Holidays,
Opportunities Cafeteria
Sick Leave etc Compensation
INTEGRATING CONTEMPORARY THEORIES OF MOTIVATION
Summary of motivation
summary

 Work motivation explains why employees behave

as they do.
 Prominent theories about work motivation
provided complementary approaches to
understanding and managing motivations in
organisations.
 These theories need to be incorporated into the
way work organisations and managerial control of
work activities.
 Members of a group interact with each other and
perceive the potential for mutual accomplishment.
 REFERENCES AND FURTHER READING
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