Leading

(Motivation)
Dr. Shahid Amjad
Institute of Business
Management (IoBM)
 NATURE OF MOTIVATION

Motivation is the force
energising, or giving
direction to behaviour.
 It is a complex interaction
of behaviours, needs,
rewards, reinforcement and
cognitive activities.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management:

2 A Pacif
 Motivation
(The Nature of motivation)
Need theories


– Hierarchy-of-needs theory
– Two-factor theory
– ERG theory
– Acquired needs theory
– Assessing need theories
Cognitive theories


– Expectancy theory
– Equity theory
– Goal –setting theory
– Assessing cognitive theories
Reinforcement theory


– Types of reinforcement
– Schedules of reinforcement
– Using reinforcement theory
Social learning theory


– Major components
 The Nature Of Motivation
• Motivation is an internal force, and cannot be
measured directly. Instead, we infer a person's
motivation by watching their behaviour.
• An employee's motivation is influenced by several
factors including ability, working conditions and
equipment. Campbell and Pritchard (1976) argued
that actual performance was a function of ability,
motivation and working conditions (see Figure 11.1
of the main text).
• While it is important to hire people with ability, it is
also necessary for managers to provide working
conditions that nurture and support individual
motivation to work towards organisational goals.
• The main elements of the motivation process are
shown in Figure 11.2 of the main text. As the
diagram shows, our inner needs (food,
companionship and growth) and cognitions
(knowledge and thoughts about efforts we might
put forth, and expected rewards) lead to various
behaviours.
• These behaviours, if appropriate, should be reinforced
through a process of rewards, and, if not
 NATURE OF MOTIVATION

abi environm
lit X motiva X ental
= performance
y tion conditio
ns

An employee's motivation is influenced by several factors

including ability, working conditions and equipment. actual
performance was a function of ability, motivation and
working conditions
 Need theories
 Need theories argue that a person is
motivated to behave in certain ways by a
desire to fulfill internal needs. These theories
are sometimes classified as content theories
as they attempt to determine what motivates
a person.
• The leading need theories of motivation are:
• hierarchy- of­ need theory, (Maslow 1960)
• two-factor theory, (Herzberg 1996, Hygiene
factor and Motivators)
• ERG theory (Existence needs, Relatedness,
and Growth needs)
• acquired-needs theory. (Achievement,
affiliation, power. Needs are gained or
learned))
•
Hierarchy-of-needs theory


• Hierarchy-of-needs theory, developed by Abraham

Maslow, argues that individual needs form a five-level
hierarchy (see Figure 11.3 of the main text). The hierarchy
consists of the following needs.
1. Physiological needs are survival needs such as food, water
and shelter.
2. Safety needs are needs pertaining to the desire to feel safe,
secure and free from threats to our existence.
3. Belongingness needs are needs involving the desire to
affiliate with and be accepted by others.
7. Esteem needs are needs related to the two-pronged desire
to have a positive self-image and to have our
contributions valued and appreciated by others.
5. Self-actualisation needs are needs pertaining to the
requirement of developing our capabilities and reaching our
full potential.


• Maslow's theory recognises that a need at one level might

not be completely fulfilled before we move on to the next
level. In general once a need has been fulfilled it no longer
acts as a motivator, and we feel a desire to satisfy the
needs of the next level. Critics of Mallow's hierarchy argue
Two-factor theory


• Frederick Herzberg's two-factor theory

argues that both hygiene factors and
motivation factors will affect an
employee's motivation.
• Motivators (associated with job
content) are factors seeming to make
individuals feel satisfied with their
jobs,
• while hygiene factors (associated with
job context) are factors seeming to
make individuals feel dissatisfied with
their jobs. Hygiene factors are
necessary to keep workers from
feeling dissatisfied, but only
motivators can lead workers to feel
satisfied and motivated. See Figure
ERG theory
• Clayton Alderfer's ERG theory is an
alternative to Maslow's hierarchy-of-needs
theory and argues there are three levels
of individual needs: existence, relatedness
and growth.
1. Existence needs include various forms of

material and physiological desires, such as

food and water, as well as work-related
forms such as pay, fringe benefits and
physical working conditions.
2. Relatedness needs address our

relationships with significant others, such as

families, friendship groups, work groups and
professional groups.
3. Growth needs are needs for creativity

and innovation, along with the desire to

• These levels essentially combine Mallow's
hierarchy into three levels instead of five.
The main principles in Alderfer's theory
follow.
1. Individuals are concerned with fulfilling

more than one need at a time, and once one

group of needs is fulfilled the satisfaction-
progression principle applies and we
move onto the next group of needs.
2. Some individual's needs may occur in a

different order than that outlined in the ERG

framework.
3. A frustration-regression principle

applies, and if we are continually frustrated

in our attempts to satisfy a higher-level
need, we may cease to be concerned about
that need and will concentrate on more
Acquired-needs theory


• Acquired-needs theory, developed by David McClelland,

argues that our needs are acquired or learned on the
basis of our life experiences and are, therefore, produced
by a range of conditions. Through the use of a series of
tests, McClelland studied three types of needs and
devised his theory. This theory consists of three identified
needs: achievement, affiliation and power.
1. Need for achievement (nAch) refers to the desire to

accomplish challenging tasks and achieve a standard of

excellence in one's work. Individuals with a high need for
achievement seek competitive situations, achieving results
through their own efforts and receiving immediate
feedback. They tend to avoid very difficult goals because of
the risk of failure.
2. Need for affiliation (nAff) refers to the desire to

maintain warm, friendly relationships with others.

Individuals with high need for affiliation tend to be involved
in professions that require high levels of interaction with
other people.
3. Need for power (nPow) refers to the desire to influence

others and control one's environment. This power can take

two forms:
 i. personal power where individuals try to dominate
others for the sake of demonstrating their ability to wield
 Using McClelland's theory the needs
profile of successful managers, in
competitive environments, includes the
following:
• moderate-to-high institutional power need
• moderate achievement need
• a minimum need for affiliation.
•
Assessing need theories


• These four theories are compared in Figure

11.5 of the main text. Higher-level needs
are recognised as important for
motivation in all theories. Given the
demand for new ideas, improved quality,
and greater capacity for change
implementation, fostering growth needs is
crucial.
Cognitive theories


• Cognitive theories attempt to

isolate the thinking patterns used
in deciding whether or not to
behave in a certain way. This group
of theories is often referred to as
process theories because they are
concerned with the thought
processes of motivation. The three
main cognitive theories of work
motivation are
• expectancy,
• equity and
• goal-setting theories.
 Expectancy theory
• Victor Vroom's expectancy theory proposes that we
consider three main issues before we expend the effort
necessary to perform at a given level (see Figure 11.6 of
the main text):
1. Effort-performance (ESP) expectancy involves

assessing the probability our efforts will lead to the required

performance level. In doing this we would evaluate our own
ability, and consider the adequacy of the contextual factors.
2. Performance-outcome (PLO) expectancy involves

assessing the probability our successful performance will

lead to certain outcomes. In particular, the possibility of
potential rewards and negative results will be considered.
Rewards can be:
– extrinsic rewards (provided by others) such as bonuses,
awards or promotions
– intrinsic rewards (related to our own internal
experiences with successful performance) such as
feelings of achievement, challenge and growth.
3. Valence refers to our assessment of the anticipated value


of the various outcomes or rewards. If available rewards

interest us, valence is high.
• Expectancy theory argues that before deciding whether to
expend any effort we consider all three elements, and
our level of motivation will depend on our perception of
Equity theory


• Equity theory, proposed by J. Stacy Adams, argues

that we prefer situations of balance, or equity, which
exist when we perceive the ratio of our inputs and
outcomes to be equal to the ratio of inputs and
outcomes for a comparison other. The selection of
whom to compare ourselves with depends on our
perception of who is most appropriate. The inputs and
outputs used when making this comparison depend
on the individual's perception and the given situation.
• Inputs include educational background, skills,
experiences, hours worked and performance results.
• Outcomes include pay, bonuses, praise, parking places,
office space, furniture and work assignments.
• Situations of inequity exist whenever there is a
perception that the level of input is not matched with
the outcomes. There are two main types of inequity:
under-reward and over­ reward.
• Under-reward is when our input/outcomes ratio is seen
to be less than that of a comparison other.
• Over-reward is when our input/outcomes ratio is seen to
be greater than that of a comparison other.
• Individuals quickly adjust to situations of over-reward,
but under-reward can cause some problems within
organisations. Situations of inequity cause tension
and the tension motivates us to do something to
eliminate or reduce the inequity. Employees may
respond by attempting to do the following.
• Maximise outcomes and resist costly input changes
• change perceptions of others' inputs and outcomes
• change the others' side of the equation
• cognitively change one's own side of the equation
• resist comparisons with others
• exit the situation by leaving the organisation.


• If inequities are not corrected, negative feelings can

build up over time. Managers need to ensure that
they maintain two-way communication with
subordinates so that they can address their concerns,
and ensure that subordinates understand the `rule'
governing the outcome allocation relative to inputs.

Goal-setting theory


• The use of goal-setting as a planning tool was

discussed in Chapter 6. Here, goal-setting
is considered as a motivation tool. Goal-
setting helps to:
• focus attention and action
• mobilise effort
• increase persistence
• encourage development of strategy.
• Goals should be specific, measurable,
challenging, attainable, relevant to the
organisation's major work and time-limited.
It is also essential that feedback is provided
so that progress towards the achievement
of goals can be monitored.
• Commitment to the goals is important and is
affected by the expectancy theory
elements of effort-performance
Assessing cognitive theories


• Each cognitive motivation theory

provides us with a different
perspective.
• Expectancy theory advises managers
to provide training and
encouragement for employees and
reward positive behaviours.
• Equity issues are important to the
individual's assessment of their
value to the organisation.
•
Reinforcement theory


• According to B. F Skinner's
reinforcement theory (based on
the ideas of operant conditioning or
behaviourism), our behaviour can be
explained by consequences in the
environment.
• The theory relies on the concept of law
of effect, which states that
behaviours having pleasant or
positive consequences are more likely
to be repeated and behaviours having
unpleasant or negative consequences
are less likely to be repeated. Skinner
proposed that a stimulus cues a
response or behaviour, and that is
followed by a consequence.
 Types of reinforcement
 There are four types of reinforcement that influence
behaviour: positive and negative reinforcements used to
increase a desired behaviour, and extinction and
punishment used to decrease an existing behaviour.
1. Positive reinforcement involves providing a pleasant,

rewarding consequence to encourage a desired behaviour.

Employees will find different rewards encouraging, so
managers must monitor the effects of rewards. Progress
towards achieving the desired behaviour should be
rewarded. This is done through a process called shaping.
Shaping is the practice of successively rewarding
behaviours that closely approximate the desired response
until the actual desired response is made.
2. Negative reinforcement is a technique aimed at

increasing a desired behaviour; it involves providing

noxious stimuli so that an individual will engage in the
desired behaviour to stop the noxious stimuli. This
technique could lead to the subordinate having negative
feelings towards the person supplying the negative
reinforcement, and affect future performance.
3. Extinction is a technique involving withholding previously

available positive consequences associated with a

particular behaviour, to decrease that behaviour.
4. Punishment attempts to discourage unwanted behaviour
Schedules of reinforcement


• Schedules of reinforcement are patterns of rewarding that

specify the basis for and timing of positive reinforcement.
There are two major schedules: continuous and partial.
Continuous reinforcement rewards behaviour when it
occurs. Partial reinforcement rewards desired behaviour
intermittently. The main partial reinforcement schedules
are fixed-interval schedule of reinforcement, fixed-ratio
schedule of reinforcement, variable-interval reinforcement
and variable-ratio reinforcement.
• Fixed-interval schedule of reinforcement is a pattern in
which a reinforcer is administered on a fixed time schedule,
assuming the desired behaviour has continued at an
appropriate level.
• Fixed-ratio schedule of reinforcement is a pattern in
which a reinforcer is provided after a fixed number of
occurrences of the desired behaviour.
• Variable-interval schedule of reinforcement is a pattern
in which a reinforcer is administered on a varying, or
random, time schedule that averages out to a
predetermined time frequency.
• Variable-ratio schedule of reinforcement is a pattern in
which a reinforcer is provided after a varying, or random,
number of occurrences of the desired behaviour in such a
way that the reinforcement pattern averages out to a
Using reinforcement theory


• Managers using reinforcement theory

should:
• encourage desired behaviour through
positive reinforcement
• tell subordinates what behaviours will
be rewarded
• use variable-interval and variable-
ratio reinforcement patterns once
desired behaviours have been
learned
• use moderately severe punishments,
administered quickly and
consistently, if required.
Social learning theory


• Social learning theory, proposed by

Albert Bandura, argues that learning
occurs through continuous reciprocal
interaction between our behaviours,
various personal factors and
environmental forces.
• Bandura argued that individuals
influence their environment, which
in turn influences how they think and
behave.
• We learn by observing, imitating and
interacting with the social
Major components


• Social learning theory presents three

cognitively-related processes that are
important in explaining behaviour: symbolic
processes, vicarious learning and self-control.
1. Symbolic processes are the various ways we

use verbal and imagined symbols to process

and store experiences in representational forms
to serve as guides to future behaviour. This
incorporates the concept of self-efficacy, the
belief in one's capabilities to perform a specific
task.
2. Vicarious learning is our ability to learn new

behaviours and/or assess their probable

consequences by observing others. Modelling
involves actually observing and attempting to
imitate behaviours of others, and has four basic
stages: attention, retention, reproduction and
motivation.
3. Self-control is our ability to exercise control
Using social learning theory
• Social learning theory has two major
managerial implications.
1. It provides positive models that

accelerate the learning of appropriate

behaviours, especially when there is the
opportunity to try new behaviours in a
supportive setting and receive
feedback.
2.Vicarious learning allows employees to

draw conclusions about prospects for

reward or punishment based on their
own experiences and those of others.
•
How to get the best out of your people
• In spite of all the theories that are
studied in this text, motivating people
is one of the hardest things to do well
and to maintain effectively. This is
because at work we see only a part of
the individual. There are many factors
which impact on workers and work is
only one of them. Here are some
behaviours which will help you
achieve motivated workers.
1. Make sure that workers know what is

expected of them as unambiguously as

possible. Mixed messages cause
confusion and decrease performance.
2. Use extinction rather than punishment

to eradicate undesirable behaviour. If

Exercise Management exercise: Marketer or


entrepreneur
• Lee Brown has been a market planning specialist for
the Sweet Tooth Company for the last two years.
This is her first job following graduation from
university, and she is pleased with her progress in
the company. She has been given three merit pay
rises and expects to be promoted soon to the
position of senior market planning specialist. She
enjoys her work, and her immediate boss is one of
the finest market planners she could ever hope to
work with. Her boss gives her autonomy, support
and resources when she needs them. Similarly, he
seems to know when she needs help and gives it to
her in a way which brings out the best in her. Lee
frequently wonders how anyone could be happier
than she is with her job and company.
• Last week she met Jamie Wilson, a former schoolmate,
at the local shopping centre. Lee recalled that
Jamie, an excellent student who majored in human
resource management, had accepted a position as a
compensation analyst with a local health-care
company. While catching up on their lives over the
last two years, Jamie said she had a business
• Her proposition was that child-care centres were
desperately needed in their area. The city of about
35 000 people had only one small child-care facility,
which had a very long waiting list and very high
rates. Jamie's research had revealed that three
different churches in the area would gladly support
additional child-care centres by furnishing their
facilities, at little or no cost, provided the centres
were managed as separate businesses. Jamie had
located a building which could be developed into an
excellent child-care centre. Jamie reasoned she and
Lee could start the business in one or more of the
churches and expand into the building she had
found. Financially, the return from operating one
child­care centre would not quite equal Lee's
current total compensation. However, two or more
centres would yield a very nice income for both
partners. Jamie had found appropriate licences
could be obtained in a few weeks and the financing
required to start the business was available at
favourable rates. Other materials and supplies were
readily available as well.
• Lee was intrigued with this proposition and told Jamie
she wanted a week to think it over. She intends to
Requirement


• Using expectancy theory, indicate

the factors impacting on Lee's
decision and strength of her
motivation to participate in the
proposed business.
•
1. Performance is a function of ability, motivation and working T/F
conditions.
2. A lack of significant rewards makes employees work harder to achieve T/F
a reward.

3. Hierarchy-of-needs theory proposed that some needs are more T/F

important than others.

4. Hygiene factors are elements of a job that are related to a safe and T/F
healthy work enviroment.

5. In ERG theory, growth needs refer to the desire an employee has to T/F
engage in creativity and innovation.
6. The frustration-regression principle states that if we are frustrated by T/F
trying to satisfy a higher-level need, our concern about that need may
cease.

7. McClelland argued that needs are acquired or learned through T/F

experience.

8. Given the increased demand for new ideas, improved quality and a T/F
greater capacity for change implementation, it is important to foster the
need for institutional power.
9. Performance-outcome expectancy is the probability that successful T/F
performance will lead to particular outcomes.

10. Managers do not need to design practices to boost motivation, as T/F

motivation stems from the inherent needs of the individual.
11. Under-reward has no significant impact on motivation in an T/F
organisation.

12. When setting goals to motivate employees, the goals should be T/F
specific, measurable, challenging, attainable and relevant.

13. The continual use of negative reinforcement and punishment can T/F
foster immaturity in individuals.

14. Punishment involves stopping positive outcomes that were previously T/F
available from behaviour to decrease the behaviour.

15. Our ability to learn new behaviours and/or assess outcomes by T/F
observation a known as vicarious learning.