RIFT VALLEY UNIVERSITY, Nekemte

Year I Semester II
Program MBA
ORGANIZATIONAL BEHAVIOR AND DEVELOPMENT
(MBA 672), CH2
YEAR I SEMESTER II

Instructor: Asfaw Temesgen (Assistant Professor)

0917811360
asfaw.tembari@gmail.com
asfawteme@wollegauniversity.edu.et
2022
 CHAPTER 3
MOTIVATION IN ORGANIZATION

Asfaw T Bari (Assistant Professor)

 BRAINSTORMING

• WHAT IS MOTIVATION?
• WHY MOTIVATION IS
IMPORTANT?
• WHAT ARE THE MOTIVATIONAL
FACTORS?

Asfaw T Bari (Assistant Professor) 3

 MOTIVATION
• Motivation is internal forces that accounts for the level and persistence of a person’s
effort expended at work.
 Motivation is an inner state that energizes, activates (or moves) and directs the ones
behavior towards certain goals

• Motivation is the method of initiating, guiding, and maintaining goal-oriented

activities
Motivation is the desire to act in service of the goal of the organization
It is one of the deriving forces behind human behavior towards goal attainment
• From these point of views motivation is encouraging and urging the employees to
perform to the best of capability to achieve the desired goal

Asfaw T Bari (Assistant Professor)

4
 MOTIVATION
• Motivation is “the extent to which persistent effort is directed toward a
goal”
1. Persistence - relates to the willingness of the individual to stay with a task until it
is complete
2. Effort - must be defined in relation to its appropriateness to the objectives being
pursued.
3. Direction - measured in terms of how persistent effort is applied in relation to the
goals being pursued
4. Goals - individual goals and organizational goals (must be compatible)
• Motivation is “a process of stimulating people to action to accomplish
desired goals”
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 MOTIVATION
• Hence, motivation is inner burning passion caused by need, wants and desire which propels an
individual to exert his/her physical and mental energy to achieve desired objectives

𝑝𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒= 𝐴𝑏𝑖𝑙𝑖𝑡𝑦 ∗ 𝑀𝑜𝑡𝑖𝑣𝑎𝑡𝑖𝑜𝑛

Asfaw T Bari (Assistant Professor) 6

 MOTIVATION
• Individual motivation in the organization contribute to the performance of the
organization through affecting
Individual attributes Work effort Organizational support
• Performance on other hand end-up with reward and compensation that finally
resulted in outcome of Satisfaction
• The relationship of motivation, performance and satisfaction is
illustrated as in the following figure

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 MOTIVATION

An integrated model of individual motivation to work .

Factors
Performance Motivation Ability Environment other than
motivation

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 MOTIVATION
• Motivation in an organization refers to the positive state of mind that drives the workforces to achieve their
objectives
• Motivation in organizational behavior not only creates willingness but also encourages employees to
fully utilize their abilities

• How does motivation play a role in organizational development?

• Motivation plays key role in an organization:
 to change the employee's moral towards organizational goals.
 to develop enthusiasm (interest) among employees and create job satisfaction,
 to remove frustration and fears on work which reflects better productivity with involvement.

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 CHARACTERISTICS OF MOTIVATION
1. Motivation is a psychological phenomenon. It is the inner desire of an individual to
accomplish something more.
2. Motivation is a continuous process. Since need is a continuous phenomenon if one
need is satisfied the other need emerges and so does individual propels to work and
thus the continuous chain is created
3. Motivation is caused due to anticipated perceived value from an action. Perceived
value is the probability or the expectancy
(

4. There are unsatisfied needs. A person remains disturbed till they are satisfied
5. Individual is motivated by positive motivation. It refers to incentives offered by the
organization to achieve efficiency
10

Asfaw T Bari (Assistant Professor)

 IMPORTANCE OF MOTIVATION

Workers would be regular Workers satisfaction so as low

for work employee turn over and
High level of performance absenteeism
High
employee
motivatio
n

Employees are passionate It has positive impact on the

hence, Acceptance of employees to build
organization change Organizational image
Asfaw T Bari (Assistant Professor) 11
 IMPORTANCE OF MOTIVATION
1. High level of performance: it is the duty of every manager to ensure that the employees
have a high degree of motivation for gaining high organizational performance.
 Highly motivated workers would be regular for work

2. Low employee turn over and absenteeism. Employee turnover and absenteeism is
caused due to low level of motivation on the part of managers.
 When dissatisfaction is increased employees do not enjoy the work assigned to them

3. Acceptance of organization change. Management must continuously scan the

external and the internal environment
 Social change increases aspirations of workers and put an additional demand on the organization

4. Organizational image: employees are the mirrors of any organization.

Motivation will have a positive impact on the employees and the image of the organization
will be improved
12
Asfaw T Bari (Assistant Professor)
 FORMS OF MOTIVATION

• Understanding what motivates each employee is crucial to both organizational and individual
success, maximizing productivity, and keeping your teams happy.
• With this regard there are four types of motivations
1. Extrinsic Motivation (external motivation)
2. Intrinsic Motivation (internal motivation)
3. Interjected Motivation (negative internalized motivation)
4. Identified Motivation (self-determined motivation)

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 FORMS OF MOTIVATION
1. EXTRINSIC MOTIVATION 2. INTRINSIC MOTIVATION
• Motivation is derived from external • If an employee is motivated by an internal
factors of the employees desire of the employees to succeed or desire
• If an employee is motivated to succeed inherently motivated.
based on influences extrinsically • Internalized sense of motivation, morale
motivated
relationship between the worker and the task
• These factors in the external
• Valued outcomes received directly through task
environment are pay (compensation),
performance
promotion, supervision, benefits, and
job bonus
• Valued outcomes given by some other
person outsider (external environment)
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 FORMS OF MOTIVATION ….
3. INTERJECTED MOTIVATION
• Interjected motivation is a negative
internalized motivation, similar to
negative reinforcement.
• These negative motivation includes
internalized guilt (fault) around a
previous negative interaction with a
boss or colleague or consistent
negative feedback without positive
action items.
Asfaw T Bari (Assistant Professor)
4. IDENTIFIED MOTIVATION
• Identified Motivation is self-determined
motivation builds up over time
• E.g. Feeling the need to perform or accomplish
a task
• But not acting on the need until the desire to
do so actualizes
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 FACTORS OF MOTIVATION
• Based on the forms of motivation, the factors of motivations are summarized as:

1. Recognition and reward

Offering recognition and reward makes employees feel accomplished appreciated
and reinforces good performance and encouragement
2. Opportunities of growth/development
• Employees feel motivated to work when they know there are opportunities to grow,
development and promotion for which they are intrinsic motivations
3. Financial benefits
• Financial benefits motivate employees for it is offering different opportunities to enjoy
that boosts their work incentive and motivation

Asfaw T Bari (Assistant Professor) 16

 FACTORS OF MOTIVATION ….
4. Work-life Balance
• Ensuring that employees have a proper work-life balance and somewhat flexible working
schedule is a good motivator so as employees become happy and productive.
5. Work environment
• Environmental factor’ of motivation such as supportive, friendly, empowering atmosphere
help employee to properly carry out their duties and responsibilities
6. Relation with colleagues
• Having good peers and colleagues at workplace impacts employees’ mood and attitude
vastly so as assign group projects and teamwork for further motivation
7. Leadership and relation with leaders
• Having a leader, the employees can look up to for inspiration and guidance is one of
theT Baribest
Asfaw motivating
(Assistant Professor) factors for employees. 17
 MEASURING MOTIVATION…
• Considering the different dimensions of motivation, below are 9 ways of measuring
motivation.
1 Belief that you can achieve (attitude)
2 Being committed to your goal
3 Taking initiative (driven to goal)
4 Thinking happy thoughts-optimism (positivism)
5 Self-confidence (You are the best)
6 Accept defeat & improve (ability to stand up)
7 Mind over matter (conscious of mindset)
8 Speed of completion (getting to the finish)
9 Gauge your motivation by your relationships (social interactions )

Asfaw T Bari (Assistant Professor) 18

 MEASURING MOTIVATION ….
Worth considering from Belief that
The ability to stand up and
the standpoint of Accept plow through failures is
you can defeat &
attitude. achieve 1 crucial
6 improve
Entails committing
yourself towards the Committed
goal to your goal 2 A great way to keep track of
7 Mind over your motivation is to be
Individual with 3 Measures of matter conscious of your mindset.
initiative is driven to Taking motivation
accomplish goal 8
initiative
4 Want to get to the finish
Characterized by Speed of
confidence and hope Thinking completion line as fast as possible.
in a bright future or happy willingness to learn and
thoughts- 9 improve
success.
optimism Gauge your
Social interactions with others
The mindset of relying 5 motivation
on achieving desired goal
on one’s own strengths Self- by your
and skills confidence relationships

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 MOTIVATION THEORY
• Motivation theory is the study of understanding what drives a person to work towards
a particular goal or outcome
• Motivation theory is relevant to all of society but is especially important to business and
management.
• That is because a motivated employee is more productive, and a more productive
employee is creating more profitable firm and/or more achievement

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 MOTIVATION THEORY
Motivation theory can be defined in
terms of content theory and process
theory.

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 ABRAHAM MASLOW’S HIERARCHY OF NEEDS
• Based on the basic physical, biological, social and psychological needs of human
beings, Maslow came up with a five-stage theory that placed the needs of the
individual in different categories and prioritizes their attainment.
1. Physiological needs (food, shelter, clothing, biological/warmth);
2. Safety and security needs (physical protection);
3. Social needs (association with others);
4. Esteem needs (receiving acknowledgement from others); and
5. Self-actualization needs (the desire for accomplishment or to leave behind a legacy).

• These Maslow's hierarchy of needs forms the basis of theories that try to
explain job satisfaction.
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 MASLOW’S HIERARCHY OF NEEDS
It is often represented by a
pyramid of needs, with the most
basic needs at the bottom and
more complex needs at the top.

Social needs

Hierarchy of human
needs 23

Asfaw T Bari (Assistant Professor)

 HERZBERG'S MOTIVATION-HYGIENE THEORY
• Herzberg's motivation-hygiene theory is the two-factor motivation theory argues that
there are separate sets of mutually exclusive factors in the workplace that either cause job
satisfaction or dissatisfaction

• Herzberg's Theory on motivation says that there are various factors (the hygiene &
motivator factors) existing at the workplace that causes job satisfaction or dissatisfaction.

It holds that motivational factors and hygiene factors need to be addressed independently
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 ACQUIRED-NEEDS THEORY
• Acquired Needs Theory (by a psychologist David McClelland), proposed that an
individual's needs are a result of experience acquired through life.
• Leaders can motivate subordinates by understanding the individual needs and finding
ways to foster acquiring those needs (needs for achievement, affialtion & power) .

Need for Need for Need for

achievement affiliation power

People who have a need for People who have a need People who have a need
achievement prefer to work on for affiliation prefer to
for power prefer to work
spend time creating and
tasks of moderate difficulty in and place a high value on
maintaining social
which results are based on discipline
relationships, enjoy being
their efforts rather than on a part of groups, and have 25
anything else a desire to feel loved and
Asfaw T Bari (Assistant Professor) accepted
 ERG THEORY OF MOTIVATION
ERG theory (Clayton Alderfer) is a modification of Maslow’s hierarchy of needs that does not rank needs

ERG theory States that individuals can be motivated by multiple levels of need at the same
time, and that the level which is most important to them can change over time
Existence concerned with the need for providing the
basic material existence requirements of humans.

Growth is concerned about Relatedness concerned about the

the desire for personal desire for maintaining important
development interpersonal relationships

• The implication of this theory is that we need to recognize the multiple needs that may be driving individuals
at a given point to understand their behavior and properly motivate them.
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 EXPECTANCY THEORY
• The Expectancy theory states that employee's motivation is an outcome of how much an
individual wants a reward (Valence),
• The assessment that the likelihood that the effort will lead to expected performance
(Expectancy) and the belief that the performance will lead to reward (Instrumentality).

Expectancy Instrumentality Valence

Effort Performance Rewards

1) Will my effort 2) Will performance 3) Do I find the
lead to high lead to outcomes? outcomes
performance? desirable?
• Make sure employees have • Reward employee
performance by • Find rewards that are
proper skills, abilities, and desirable to employees
knowledge informing people in
and make sure that
advance about the rewards are viewed as fair
rewards
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 EQUITY THEORY OF MOTIVATION
• The Equity Theory of Motivation deals with the way people compare the value of themselves to
others in similar work situations based on their inputs and outputs.

Person Referent
Other
Outcomes = Outcomes
Inputs
Equity Inputs
Theory is based on the idea that individuals are motivated by
fairness
Make employees perceive their treatment to be fair relative to others
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 GOAL SETTING THEORY OF MOTIVATION
• According to this theory, goals that are clear, specific, and challenging are more
motivating than vague goals or easy goals
• Goal Setting Theory explains the mechanisms by which goals influence behavior,
and how the latter can be moderated by goal characteristics
• This theory of motivation assumes that each employee having his/her own goal,
and keeping all workers informed of larger goals to ensure continuous commitment
and teamwork in a business.

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 GOAL SETTING THEORY OF MOTIVATION
• Model of goal setting theory of motivation

Goal theory

Performance
Learning Goal Goal outcome Goal

Reflect a desire to Reflect a desire to

gain knowledge look individual
and skill to accept ability and
and commit organizational
difficult goal support

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 REINFORCEMENT THEORY OF MOTIVATION
• Reinforcement theory is a psychological principle suggesting that behaviors are shaped
by their consequences, and that individual behaviors can be changed through
reinforcement (positive & negative), punishment and extinction.
Positive reinforcement : Reinforcement with rewards reinforces desired behaviors
Negative reinforcement: removal of aversive (punish) stimuli to reinforce the target
behavior.
Punishment: involves the delivery of an aversive stimulus, such as criticism
Extinction: to lower the occurrence of undesired behaviors

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 REINFORCEMENT THEORY OF MOTIVATION
• Reinforcement theory of motivation (by Skinner) states that behavior is a function of its
consequences
Positive Negative Manager stops
Reinforcement Reinforcement nagging the
• Positive behavior • Positive behavior employee
Manager followed by followed by
praises the positive removal of
employee consequences negative
consequences

Punishment Extinction
Manager • Negative behavior • Negative behavior Manager
demotes followed by followed by ignores the
the negative removal of positive
consequences consequences behavior
employee

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 HARD WORK

WORK ON THE
ASSIGNMENTS AND
SUBMIT IN TIME
AT TIME OF CLASS END

ANY COMMENT IS
Hedduu WELCOME
galatoomaa
Asfaw T Bari (Assistant Professor) 33