Understanding Motivation in Organizations
Understanding Motivation in Organizations
Motivation is the processes that account for an individual’s intensity, direction, and persistence
of effort toward attaining a goal.
Motivation represents the forces acting on or within a person that cause the person to behave
in a specific, goal-directed manner.
When we see in an organization context, motivation is the willingness to exert high levels of effort
toward organizational goals, conditioned by the effort’s ability to satisfy some individual need.
While general motivation is concerned with effort toward any goal, therefore, it is better to narrow
our focus to organizational goals in order to reflect our singular interest in work-related behavior.
4.1.1Motivation process
The motivation process starts with an unsatisfied need. An unsatisfied need creates tension that
stimulates drives within the individual. These drives generate a search behavior to find particular
goals. The particular goals, if attained, will satisfy the need. When need is satisfied it leads to the
reduction of tension. Figure 4.1 the motivation process
Motivation plays an important role in directing human behavior. There are several 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 the result of the person’s thoughts and expectations.
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4. It can be of two types: intrinsic motivation that comes from within the person, based on
personal enjoyment of any task, and extrinsic motivation, which is based on external rewards
such as money, pay and grades. You will find that sometimes we work hard and produce high
quality work when motivation is intrinsic rather than extrinsic. On the other hand, we are also
influenced by the external rewards. In life, both types of motivation are important. There are
unsatisfied needs. A person remains disturbed until they are satisfied. This disturbance or
tension causes disequilibria in human behavior. More the motivation level the higher will be
efforts to get over the tension and in the process job, accomplishment would take place.
5. Finally, motivational needs are ordered such that basic needs such as hunger and thirst are
satisfied first and then other higher-needs, such as need for achievement and power are
fulfilled.
4.3 Importance of Motivation
It may have different importance’s for both the individual and the organization. The following
are among the importance’s of motivation:
a) High level of performance: Highly motivated workers would be regular for work, and have a
sense of belonging for the organization. Quality of product will be improved, wastage will be
minimized and there will be increase in productivity, and performance level will be high.
b) Low employee turnover and absenteeism. Employee turnover and absenteeism is caused
due to low level of motivation on the part of managers or organization. When dissatisfaction
is increased employees do not enjoy the work assigned to them. Therefore, there is a tendency
of absenteeism. The workers hunt for an alternative job and leave the organization whenever
they get an opportunity. High level of absenteeism causes low level of production, wastages,
poor quality, and disruption in production schedules. Increased turnover is disastrous for any
organization as it puts strain on financial position of the organization due to additional
recruitment, selection, training, and development. Motivation is therefore a very important
management tool to achieve organizational excellence.
c) Acceptance of organization change. Management must continuously scan the external and
the internal environment. There has been a great impact of Social change and technology
evolution on the motivation level of employees. Social change increases aspirations of workers
and put an additional demand on the organization, which must be considered positively so that
conducing working environment is created. Technical innovation, better working conditions,
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better R & D facilities, encouragement to employees and existence of better personal policies
should be part of any organization. This will facilitate retention of employees. Management
must ensure that the changes are introduced in the organization and its benefits explained to
the employees so that there is no resistance to change and organizational growth is achieved.
Re-engineering, empowerment, job enrichment, job rotation, introduction of new technology
and processes will go a long way to boost employee morale and achieve high degree of
motivation.
d) Organizational image: Employees are the mirrors of any organization. Manager must lay
down high performance standards coupled with high monetary and non- monetary rewards.
Training & development programmes should be regularly organized and employee skill
improved. It will have a positive impact on the employees and the image of the organization
will be improved. It will also reduce employee turnover and better employee will look forward
to join the organization. High organizational image will contribute towards brand image of the
product and services the organization is marketing.
4.4 Theories of Motivation
These are theories explaining how employees will be motivated. And we will try to see them by
categorizing in to two which are early theories of motivation and contemporary theories of
motivation.
4.4.1 Early Theories of Motivation
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Carrot - money in the form of pay or bonuses.
Stick – fear such as fear of loss of job, loss of income, reduction of bonuses demotion or some other
penalty.
2. Hierarchy of Needs Theory
This theory proposes that employees are motivated through five levels of needs: physiological,
safety, social, esteem, and self-actualization. Abraham Maslow developed this theory in the 1940s,
based on four major assumptions.
1. First, only unmet needs motivate.
2. Second, people’s needs are arranged in order of importance (hierarchy) going from basic to
complex.
3. Third, people will not be motivated to satisfy a higher-level need unless the lower-level need(s)
has been at least minimally satisfied.
4. Finally, Maslow assumed that people have five classifications of needs.
Needs classification is presented here in hierarchy order from low to high level of need along with
the ways used by managers to meet these five needs of employees.
1. Physiological needs: This category includes people’s primary or basic needs: air, thirst, food,
shelter, etc. Organizations meet these needs through adequate salary, breaks, and safe working
conditions.
2. Safety and Security needs: Once they satisfy their physiological needs, people are concerned
with safety and security. Organizations meet these needs through safe working conditions,
salary increases to meet inflation, job security, and fringe benefits (medical insurance/ sick
pay/ pensions) that protect the physiological needs.
3. Social/Belongingness needs: After establishing safety, people look for love, friendship,
acceptance, and affection. Organizations meet these needs by providing employees with the
opportunity to interact with others, to be accepted, and to have friends. Activities include
parties, picnics, trips, and sports teams.
4. Esteem needs: After they meet their social needs, people focus on ego, status, self-respect,
recognition for accomplishments, and a feeling of self-confidence and prestige.
5. Self-actualization needs: The highest level of need is to develop one is full potential. Drive
to become what we are capable of becoming; includes growth, achieving our potential, and
self-fulfillment. Organizations meet these needs by developing employees ’skills, the chance
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to be creative, achievement and promotions, and the ability to have complete control over their
jobs.
Therefore, if you want to motivate someone, according to Maslow, you need to understand what
level of the hierarchy that person is currently on and focus on satisfying those needs at or above
that level. Maslow separated the five needs into higher and lower orders. Physiological and safety
needs were described as lower-order needs and social, esteem, and self-actualization needs are
higher-order needs. Higher-order needs are satisfied internally (within the person), whereas lower-
order needs are predominantly satisfied externally (such as pay, union contracts and tenure).
Today people realize that needs are not on a simple five-step hierarchy. Managers must meet
employee’s lower-level needs so that they will not dominate the employee’s motivational process.
Managers should get to know and understand people’s needs and meet them as a means of
increasing performance.
3. Theory X and Theory Y (Douglas McGregor)
Douglas McGregor proposed two distinct views of human beings: one basically negative, labeled
Theory X, and the other basically positive, labeled Theory Y. After studying managers’ dealings
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with employees, McGregor concluded that their views of the nature of human beings are based on
certain assumptions that mold their behavior. McGregor understood people’s motivation using
Maslow’s need theory. McGregor grouped the physiological and safety needs as „lower-order
needs and the social, esteem, and self-actualization needs as higher-order needs. McGregor
proposed/formulated two alternative sets of assumptions about human nature or people at work
based upon which set of needs were the motivators. He labeled these sets of assumptions as Theory
X and Theory Y.
Assumptions held by managers under Theory X are:
1) Employees do not inherently dislike work; working is as natural as resting and playing.
2) Employees are capable of self-direction and self-control if they are committed to objectives.
3) The typical employee can learn to accept and seek responsibility.
4) Most employees are able to use creativity to solve problems.
Theory Y is the assumption that employees like work, are creative, seek responsibility, and can
exercise self-direction.
According to McGregor, people should be treated differently according to whether they are
motivated by lower-order or higher-order needs. Specifically, he believed that theory X
assumptions are appropriate for employees motivated by lower-order needs. Theory Y
assumptions, in contrast, are appropriate for employees motivated by higher-order needs, and
theory X are then inappropriate.
Believing an individual’s relationship to work is basic, and that attitude toward work can determine
success or failure, psychologist Frederick Herzberg wondered, “What do people want from their
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jobs?” He asked people to describe, in detail, situations in which they felt exceptionally good or
bad about their jobs. In the late 1950s, Herzberg and his associates conducted a study of the job
attitudes of 200 engineers and accountants. The responses differed significantly and led Hertzberg
to his two-factor theory also called motivation-hygiene theory. This theory was termed the
two-factor theory and proposed that motivators rather than hygiene factors motivate employees.
From this research, Herzberg concluded that job dissatisfaction and job satisfaction arise from two
separate sets of factors.
Dissatisfiers/ maintenance/ Hygiene Factors: are features of the work environment rather than
the work itself. They include such things/factors as salary, status, and fringe benefits, working
conditions, quality of supervision, interpersonal relations, and company policy. The most
important of these factors is company policy, which many individuals judge to be a major cause
of inefficiency and ineffectiveness. The word „hygiene‟ indicates that they stop dissatisfaction
from occurring, and work could be very dissatisfying if they are absent. Positive ratings for these
factors did not lead to job satisfaction but merely to the absence of job dissatisfaction. All the
hygiene factors do is ensure that a state of no dissatisfaction exists.
Motivators/ Satisfiers: include achievement, recognition, responsibility, and nature of the job
itself, and advancement- all related to the job context and the rewards of work performance seem
to be related to job-satisfaction. The data suggest, says Herzberg, that the opposite of satisfaction
is not dissatisfaction, as was traditionally believed.
Removing dissatisfying characteristics from a job does not necessarily make the job satisfying.
Herzberg proposes a dual continuum: the opposite of "Satisfaction" is "No Satisfaction," and the
opposite of "Dissatisfaction" is "No Dissatisfaction."Herzberg explained that the factors leading
to job satisfaction were motivators that are separate and distinct from the hygiene factors that lead
to job dissatisfaction.
Figure 4.3 Contrasting View of Satisfaction and Dissatisfaction
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When hygiene factors are adequate, people will not be dissatisfied; however, neither will they be
satisfied. Herzberg suggested emphasizing factors associated with the work itself or with outcomes
directly derived from it, such as promotional opportunities, personal growth opportunities,
recognition, responsibility, and achievement. These are the characteristics people find intrinsically
rewarding.
Motivating Employees with Two-Factor Theory
The best way to motivate employees is to ensure that they are not dissatisfied with hygiene factors;
then focus on motivating. One successful way to motivate is to build challenge and opportunity
for achievement into the job itself. After all, Herzberg developed a method for increasing
motivation, which he called job enrichment.
5. learned needs theory (David McClelland)
According to this theory, individuals acquire three types of needs as a result of their life
experiences. These needs are:
❖ Need for achievement,
❖ Need for affiliation,
❖ Need for power
Need for achievement (nAch) is the drive to excel, to achieve in relationship to a set of standards.
High need for achievement people:
❖ Prefer individual responsibilities.
❖ Prefer challenging goals.
❖ Prefer performance feedback.
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From research into the achievement need, McClelland found that high achievers differentiate
themselves from others by their desire to do things better.
Need for power (nPow) is the need to make others behave in a way they would not have otherwise.
High need for power people:
❖ Seek influence over others.
❖ Like attention.
❖ Like recognition.
Need for affiliation (nAff) is the desire for friendly and close interpersonal relationships.
Early theories of motivation either have not held up under close examination or have fallen out of
favor. In contrast, contemporary theories have one thing in common: each has a reasonable degree
of valid supporting documentation. This doesn’t mean they are unquestionably right. We call them
“contemporary theories” because they represent the current state of thinking in explaining
employee motivation. It includes:
❖ ERG theory
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❖ Equity Theory
❖ Expectancy Theory
❖ Goal setting theory
1) ERG Theory
ERG theory was developed by Clayton Alderfer and it is a well-known simplification of the
hierarchy of needs theory.
Clayton Alderfer reorganized Maslow’s needs hierarchy into three levels of needs: existence
(physiological and safety needs), relatedness (social), and growth (esteem and self-actualization).
Existence needs: are concerned with sustaining human existence and survival, and cover
physiological and safety needs of a material nature.
Relatedness needs: are concerned with relationships to the social environment, and cover love or
belongingness, affiliation, and meaningful interpersonal relationships of a safety or esteem nature.
Growth needs: are concerned with the development of potential, and cover self-esteem and self-
actualization.
Alderfer agreed with Maslow that worker motivation could be gauged according to a hierarchy of
needs. Alderfer maintained the higher- and lower-order needs. He agreed with Maslow that
unsatisfied needs motivate individuals, but disagreed that only one need level is active at one time.
According to this theory more than one need may be activated at the same time. In addition, ERG
theory differs from Maslow’s theory in two basic ways. First, Alderfer broke needs down into
three categories: Existence (Maslow’s fundamental needs), Relatedness needs (needs for
interpersonal relations), and Growth needs (needs for personal creativity or productive
influence).Second, and more important, he stressed that when higher needs are frustrated, the
desire to satisfy a lower level need increases. ERG theory also contains a frustration-regression
dimension.
Motivating Employees with ERG Theory
For using ERG theory, one should find out which needs have been met, which needs have not been
met or have been frustrated, and how to meet the unsatisfied needs. Employee needs have to be
satisfied while achieving the organizational objectives.
2) Equity Theory
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Equity theory proposes that employees are motivated when their perceived inputs equal outputs.
Equity theory focuses on people’s feelings of how fairly they have been treated in comparison with
the treatment received by others. According to J. Stacy Adams, the proponent of equity theory,
people compare their inputs (effort, experience, seniority, status, intelligence, and so forth) and
outputs (praise, recognition, pay, benefits, promotions, increased status, supervisor’s approval, etc)
to that of relevant others. A relevant other could be a coworker or group of employees from the
same or different organizations, or even from a hypothetical situation. Motivation is based on the
perception of one’s own outcome/input ratio compared to that of a similar individual or group,
called a referent. Equity theory proposes that motivation is based on the worker’s perception of
the work situation. When the ratio of a person’s total outcomes to total inputs equals the perceived
ratio of other people’s total outcomes to total inputs there is equity. When there is an unequal
comparison of ratios the person experiences a sense of inequity. An unpleasant, dissatisfying
experience arises if the employee perceives an inequity. When employees perceive inequity, they
attempt to reduce it by reducing input or increasing output.
The referent that an employee selects adds to the complexity of equity theory. Evidences indicate
that the referent chosen is an important variable in equity theory. There are four referent
comparisons we can use:
a) Self-inside: An employee’s experiences in a different position inside his/her current
organization.
b) Self-outside: An employee’s experiences in a situation or position outside his/her current
organization.
c) Other-inside: Another individual or group of individuals inside the employee’s organization
d) Other-outside: Another individual or group of individuals outside the employee’s
organization
Ways to Restore Equity
Once an individual experiences inequity, there are several ways to restore equity:
1. Change inputs. Exert less effort if underpaid or more if overpaid
2. Change outcomes (for example, individuals paid on apiece-rate basis can increase their pay by
producing a higher quantity of units of lower quality)
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3. Change referent’s inputs or outcomes. Underpaid workers may try to reduce their referent’s
outcomes by telling the boss a coworker doesn’t deserve a bonus or to get referents to increase
inputs. Overpaid workers could try to increase or decrease the outcomes referents receive.
4. Change perceptions of the situation. Equity can be restored through changes in perception of
the inputs and outcomes of the worker and the referent. A worker might realize that the referent
had inputs that were overlooked (i.e., additional education) and/or that the worker received
additional outcomes (i.e., a sense of accomplishment).
5. Change the referent. Usually referents chosen by workers are similar in characteristics such as
age, background, experience, and education levels. Sometimes the worker realizes that the referent
was inappropriate (e.g., older, more experienced, related to the boss, or superhuman). A change in
the referent can restore equity.
6. Leave the job or organization. Leaving the organization restores equity. The worker can seek
a more equitable work situation.
Motivating Employees with Equity Theory
Equity theory offers some useful general recommendations. First, managers should be aware that
equity is based on perception, which may not be real. Second, rewards should be equitable. Third,
high performance should be rewarded, but employees must understand the inputs needed to attain
certain outputs.
3) Expectancy Theory
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b) Performance- Reward Relationship: The degree to which the individual believes that
performing at a particular level will lead to attainment of desired outcome (Instrumentality).
c) Reward-personal goal relationship: The degree to which an organizational reward will
satisfy individual needs and its attractiveness for the individual(Valence)
Maslow’s theory is basically need satisfying concept. Vroom has gone one-step ahead to identify
individual expectations from the organization, and its impact on work behavior of an individual.
If a system of performance appraisal and its resultant benefits are attractive, then the individual
will put up his best to achieve organizational objective. The behavior of an individual has been
taken as rational. The theory helps managers to work beyond Maslow and Herzberg and create
work environment and set organizational goals in such a way that individual is stretched to achieve
higher performance.
5. Goal-Setting Theory
Goal setting theory is proposed by Edwin Locke. According to Locke goals are a major source of
work motivation. A goal is “what an individual is trying to accomplish”. Goals tell an employee
what needs to be done and how much effort will need to be expended. The basic premise of goal
theory is that people’s goals or intentions play an important part in determining behavior. The
quality of performance is generally shaped by how difficult and how specifically defined the goal
is. General goal such as “do your best,” do not lend to accurate performance appraisal and
proportionate rewards. Specific goals are clear and tend to give a clear direction to the worker,
resulting in improved performance. Similarly, difficult goals, once accepted, lead to higher
performance.
According to Locke, goal setting motivates in four ways:
Goals direct attention. Goals indicate where individuals should direct their efforts when they are
choosing among things to do. For instance, recognizing that an important assignment is due in a
few days, goal setting may encourage you to say no when friends invite you to a movie this
evening.
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Goals regulate effort. Goals suggest how much effort an individual should put into a given task.
For instance, if earning a high mark in accounting is more important to you than earning a high
mark in organizational behavior (OB), you will likely put more effort into studying accounting.
Goals increase persistence. Persistence represents the effort spent on a task over time. When
people keep goals in mind, they will work hard on them, even in the face of obstacles.
Goals encourage the development of strategies and action plans. Once goals are set, individuals
can develop plans for achieving those goals. For instance, a goal to become fit may include plans
to join a gym, workout with friends, and change eating habits.
Our overall conclusion is that intentions-as articulated in terms of hard and specific goals are a
potent motivating force. Under the proper conditions, they can lead to higher performance.
However, no evidence supports the idea that such goals are associated with increased job
satisfaction.
4.5 Implication of motivation for performance and satisfaction
4.5.1Motivation Vs Satisfaction
Motivation refers to the drive and effort to satisfy a want or a goal. Satisfaction refers to the
contentment experienced when a want is satisfied. In other words, motivation implies a drive
toward an outcome, and satisfaction is the outcome already experienced.
Satisfactio
Motivation Performanc Results
n
e
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Keeping other variables constant, motivation and performance have neither positive nor negative
relationship. As motivation increases, job performance increases, reaches its maximum and
decreases.
Optimal/maximum
Performance
Motivation
NB: After the optimal point further motivation brings about anxiety, tenseness, fretfulness, and
the anxiety eventually decreases performance.
4.6 Managerial Approaches for Improving Motivation
Positive employee motivation has far-reaching consequences in terms of organizational
performance and productivity. An organization, in order to achieve optimum performance from its
employees, must have not only employees with the required skills and abilities but also the
motivation and willingness to perform. To motivate employees the management uses several
important ways such as rewards, job design, self-leadership, empowerment, performance feedback
and Alternative Work Arrangements.
1. Reward Systems: Organizations can offer two types of rewards: intrinsic and extrinsic.
Intrinsic rewards include rewards associated with the job itself, such as challenging
assignments, responsibility, autonomy, and opportunities for growth. Extrinsic rewards
include all other rewards that are typically external to the job’s content, such as higher pay, a
promotion, a larger office, and a new job title.
2. Job Design: A job is a set of tasks performed by one person. Job design is the process of
assigning tasks to a job, including the interdependency of those tasks with other jobs.
Traditional approach to job design relied heavily on job specialization. Job specialization
subdivides work into separate jobs for different people. Job specialization increases work
efficiency because employees master the tasks quickly, spend less time changing tasks, require
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less training, and can be matched more closely with jobs best suited to their skills. However,
job specialization may reduce work motivation, create mental health problems, lower
product/service quality, and increase costs through discontentment pay, absenteeism, and
turnover.
Contemporary job design strategies reverse job specialization through job rotation, job
enlargement, and job enrichment.
a) Job Rotation: It is the practice of moving employees from one job to another typically for
short periods. The strengths of job rotation are that it reduces boredom, increases motivation,
and helps employees better understand how their work contributes to the organization. An
indirect benefit is that employees with a wider range of skills give management more f lexibility
in scheduling work, adapting to changes, and filling vacancies.
b) Job Enlargement: It is the practice of increasing the number of tasks employees performs
within their job. Instead of rotating employees through different jobs, job enlargement
combines tasks into one job. Two or more complete jobs combined into one or just add one or
two more tasks to existing job. This technique hopes to alter the scope of work.
c) Job Enrichment: It occurs when employees are given more responsibility for scheduling,
coordinating, and planning their own work. Crucially, it involves a measure of vertical
expansion so that the person has some authority over the planning, execution, and control of
the work. The evidence on job enrichment shows it reduces absenteeism and turnover costs
and increases satisfaction, but not all programs are equally effective
3. Self-Leadership: It is the process of influencing oneself to establish the self-direction, and
self-motivation needed to perform the task. It takes the view that individuals mostly regulate
their own actions through the behavioral and cognitive (thought) activities. The five elements
of self-leadership are: personal goal setting, constructive thought patterns, designing natural
rewards, self-monitoring, and self-reinforcement. Constructive thought patterns include self-
talk and mental Imaging.
4. Empowerment: Empowerment means creating conditions in which employees perceive
themselves as competent and in control of performing meaningful tasks. Besides delegating
responsibility, managers can empower employees by sharing information freely and by
minimizing red tape and other roadblocks to effective performance.
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5. Performance Feedback: The degree to which carrying out the work activities required by a
job results in the individual obtaining direct and clear information about the effectiveness of
his or her performance. Appropriate feedback about performance can enhance motivation.
Employee’s self-efficacy can boost by hearing their successes.
6. Alternative Work Arrangements: Another approach to motivation is to alter work
arrangements with flextime, job sharing, or telecommuting. These are likely to be especially
important for a diverse workforce of dual-earner couples, single parents, and employees caring
for a sick or aging relative.
Telecommuting: Working from home at least two days a week on a computer that is linked to the
employer’s office. (A closely related term the virtual office describes working from home on a
relatively permanent basis.)
Flextime: Flexible work hours. Employees must work a specific number of hours per week but
are free to vary their hours of work within certain limits.
Job sharing: An arrangement that allows two or more individuals to split a traditional 40-hour-a-
week job. One might perform the job from 8:00 a.m. to noon and the other from 1:00 p.m. to 5:00
p.m., or the two could work full but alternate days.
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