Chapter - Motivation
Md. Imran Hossain
Assistant Professor
Dept: of Finance
Jagannath University
Planning Ahead — Study Questions
What is motivation?
What are the different types of individual needs?
What are the process theories of motivation?
What role does reinforcement play in motivation?
What are the challenges of motivation in the new workplace?
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Motivation
Any influence that triggers, directs or
maintains behavior
Research is based upon different variables
that affect motivation
Individual Differences
Organizational Contexts
Manager Behaviors
Process Theories
Motivation
Basic motivational concepts
Motivation—the forces within the individual that
account for the level, direction, and persistence
of effort expended at work.
Reward—a work outcome of positive value to
the individual
Extrinsic rewards—valued outcomes given to
someone by another person.
Intrinsic rewards—valued outcomes that occur
naturally as a person works on a task.
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Motivation
To achieve maximum motivational potential in
linking rewards to performance …
Respect diversity and individual differences to best
understand what people want from work.
Allocate rewards to satisfy the interests of both
individuals and the organization.
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Types of motivation theories
Types of motivation theories
Content theories
Human needs and how people with different needs may
respond to different work situations.
Process theories
How people give meaning to rewards and make decisions on
various work-related behaviors.
Reinforcement theory
How people’s behavior is influenced by environmental
consequences.
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Content Theories of
Motivation
Maslow’s Alderfer’s Herzberg’s McClelland’s
Need Hierarchy ERG Theory Theory Learned Needs
Self- Need for
Actualization Achievement
Growth Motivators
Need for
Esteem
Power
Need for
Belongingness Relatedness
Affiliation
Safety Hygienes
Existence
Physiological
Practical Implications of
Content Theories
People have different needs at different
times
Offer employees a choice of rewards -- a
flexible reward system
Do not rely too heavily on financial
rewards
they mainly address lower level needs
Maslow’s Hierarchy
Each individual has needs, or feelings of
deficiency that drive their behavior
Once a need is satisfied, then it is no
longer motivating
Needs are in a hierarchy that an individual
moves up as they satisfy levels of needs
14.3
Maslow’s Hierarchy
Self-
Actualization
Esteem
Affiliation
Security
Physiological
Adapted from Figure
14.2
Levels of Needs
Physiological/Survival needs
Food, Clothing, Shelter, Air
Security
Feel safe, absence of pain, threat, or illness
Affiliation
friendship, company, love, belonging
first clear step up from physical needs
Need levels (cont.)
Esteem Needs
self-respect, achievement, recognition,
prestige
cues a persons worth
Self-Actualization
personal growth, self-fulfillment, realization of
full potential
Where are YOU on the hierarchy???
Alderfer’s ERG
Consolidates Maslow into 3 categories
Existence-physiological and security
Relatedness-affiliation
Growth-esteem and self-actualization
14.4
ERG Model of Motivation
Frustration-Regression Satisfaction-Progression
Growth Needs
Relatedness Needs
Existence Needs
Adapted from Figure
14.3
Frustration-Regression
Differs from Maslow
When unable to satisfy upper level needs,
the individual will revert to satisfying
lower level needs
Interesting point from research....growth
stimulates growth
McClelland’s Learned
Needs
Needs are acquired through interaction
with environment
Not a higherarchy, but degrees of each
type of need or motive
Types of Needs
N Ach-motive to meet some standard of
excellence or to compete
N Aff-motive to develop and maintain
close and meaningful relationships
N Pow-desire to influence and control
others and the environment
Herzberg’s Two Factor
Theory
Some variable prevent job dissatisfaction
and some variables produce motivation
Hygiene factors-basic needs that will
prevent dissatisfaction
light, temperature, pay, parking
Motivators
when present cause high levels of motivation
interesting work, advancement, growth, etc.
Herzberg’s Two Factor
14.6
Theory
High
Motivation
Low Motivation
Low Dissatisfaction
Dissatisfaction
Low High Low High
Hygienes Motivators
Adapted from Figure
14.4
Herzberg’s two-factor theory.
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Process Theories
Reinforcement Theory
Expectancy
Equity
Justice Theory
Goal Setting
Types of Reinforcement
Positive Reinforcement-rewards
Punishment-Application of a negative outcome
Negative Reinforcement-removal of negative
outcomes when behavior is performed
Extinction-absence of reinforcement (removal
of positive reinforcement)
Drawbacks
14.9
Reinforcement Process
Stimulus
(situation)
Response
(behavior)
Consequences
(rewards and punishments)
Future Behavior
Source: From L. W. Porter and E. E. Lawler III.
Managerial Attitudes and Performance. Homewood, Adapted from Figure
Ill.: Irwin, 1968, p. 165. Used with permission 14.6
Types of Rewards
Extrinsic-external rewards such as money,
fringe benefits, job security
Intrinsic-internal satisfaction outcomes
from doing work
Satisfaction-employee’s attitude about
work situations
Intrinsic motivation and Intrigue??????
Equity Theory
Individuals try to find a balance between
their inputs and outputs relative to a
referent other
However, a referent other is not always
present
Equity theory and the role of
social comparison.
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Results of Inequity
Equity-I am being treated fairly
Under-rewarded-will look to increase
rewards, or decrease inputs to match
rewards
Over-rewarded-will change referent to
match cognitions or increase inputs
Leaving and distortion
Reinforcement Theory
Behaviors are functions of consequences
that they produce
If a behavior is followed by a pleasant
experience it will be repeated
In order to change behaviors the
consequences must be changed
Overreward Versus
Underreward Inequity
Comparison
You
Other
Outcomes
Overreward Outcomes
Inequity
Inputs Inputs
Underreward Outcomes
Inequity Outcomes
Inputs Inputs
Goal-setting theory
Goal-setting theory
Developed by Edwin Locke.
Properly set and well-managed task goals can be
highly motivating.
Motivational effects of task goals:
Provide direction to people in their work.
Clarify performance expectations.
Establish a frame of reference for feedback.
Provide a foundation for behavioral self-management.
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Key issues and principles in the goal-
setting process:
Set specific goals.
Set challenging goals.
Build goal acceptance and commitment.
Clarify goal priorities.
Provide feedback on goal accomplishment.
Reward goal accomplishment.
Management - Chapter 14
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Goal-setting theory
Participation in goal setting …
Unlocks the motivational potential of goal setting.
Management by objectives (MBO) promotes
participation.
When participation is not possible, workers will
respond positively if supervisory trust and
support exist.
Management - Chapter 14
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Effect of Goal Difficulty on
Performance
High
Task Performance
Area of
Optimal
Goal
Difficulty
Low Moderate Challenging Impossible
Goal Difficulty
Expectancy Theory
Combines goal setting and reinforcement
theories
Three questions drive motivation
With effort can I perform?
With performance, will I be rewarded?
Do I value the rewards?
Elements in the expectancy
theory of motivation.
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Terms
Expectancy-belief that effort will lead to
performance
Instrumentality-performance leads to
rewards (does performance level matter)
Valence-value of rewards
Expectancy Theory of
Motivation
E-to-P P-to-O Outcomes
Expectancy Expectancy & Valences
Outcome 1
+ or -
Outcome 2
Effort Performance + or -
Outcome 3
+ or -
Managerial implications of
expectancy theory.
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An integrated approach to
motivational dynamics.
Integrated model of motivation
Motivation leads to work effort that, when combined
with appropriate individual abilities and organizational
support, leads to performance accomplishment.
The motivational impact of any rewards received for
this performance accomplishment depends on equity
and reinforcement considerations.
Ultimately, satisfaction with rewards should lead to
increased motivation to work hard in the future.
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An integrated approach to
motivational dynamics.
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the challenges of motivation in
the new workplace
Pay for performance
Paying people for performance is consistent with:
Equity theory.
Expectancy theory.
Reinforcement theory.
Merit pay
Awards a pay increase in proportion to individual
performance contributions.
Provides performance contingent reinforcement.
May not succeed due to weakness in performance appraisal
system or lack of consistency in application.
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the challenges of motivation in
the new workplace
Incentive compensation systems:
Skill-based pay.
Links pay to the number of job-relevant skills
an employee masters.
Bonus pay plans.
One-time or lump-sum payments based on the
accomplishment of specific performance
targets or some extraordinary contribution.
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the challenges of motivation in
the new workplace
Incentive compensation systems:
Profit-sharing plans.
Some or all employees receive a proportion of net profits
earned by the organization.
Gain-sharing plans.
Groups of employees share in any savings realized through
their efforts to reduce costs and increase productivity.
Employee stock ownership plans.
Employees own stock in the company that employs them.
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