CHAPTER FOUR: MOTIVATION

PREPARED BY: CHERNET T.

 After studying this chapter, you should be able to:
➢ Define the term motivation
Chapter ➢ Discuss early theories of motivation
Objective
➢ Explain contemporary theories of motivation
  We define motivation as the processes that account
for an individual’s intensity, direction, and
persistence of effort toward attaining a goal.

Definition of  Motivation refers to the factors which move or

Motivation activate the organism. All human behavior appears
to arise in response to some form of internal
(physiological) or external (environmental)
stimulation.
  Motivation is defined as “inner burning passion
Definition of caused by need, wants and desire which propels an

Motivation individual to exert his physical and mental energy to

achieve desired objectives”.
  Four theories of employee motivation formulated
during the 1950s, although now of questionable
validity, are probably still the best known. We will
EARLY THEORIES OF
discuss more valid explanations later, but these four
MOTIVATION
represent a foundation on which contemporary
theories have grown, and practicing managers still
use them and their terminology.
 The best-known theory of motivation is Abraham
Maslow’s hierarchy of needs. Maslow hypothesized that

Hierarchy of Needs within every human being, there exists a hierarchy of five
needs:
Theory
 1. Physiological. Includes hunger, thirst, shelter, sex, and
other bodily needs.
2. Safety. Security and protection from physical and
emotional harm.
3. Social. Affection, belongingness, acceptance, and
friendship.
Hierarchy of Needs
4. Esteem. Internal factors such as self-respect, autonomy,
Theory
and achievement, and external factors such as status,
recognition, and attention.
5. Self-actualization. Drive to become what we are capable
of becoming; includes growth, achieving our potential,
and self-fulfillment.
Hierarchy of Needs
Theory
 In essence Maslow’s Motivational Theory covers
the following.

a) There are five levels of human needs.

b) These needs are hierarchical in nature.
Hierarchy of c) A satisfied need is no longer a need.
Needs Theory Once that need is satisfied, the next level need
becomes stronger. Needs do not diminish. It is the
gravity that changes. Individual strives to satisfy the
need that has a strong appeal at any point of time.
 Douglas McGregor proposed two distinct views of
human beings: one basically negative, labeled Theory
X, and the other basically positive, labeled Theory Y.

Under Theory X, managers believe employees

Theory X and inherently dislike work and must therefore be directed or
Theory Y even coerced into performing it.

Under Theory Y, in contrast, managers assume

employees can view work as being as natural as rest or
play, and therefore the average person can learn to
accept, and even seek, responsibility.
 Clayton Alderfer of carried out further studies
on Maslow’s theory of need hierarchy. He
identified three basic needs of human being
against five needs of Maslow. These are:
Alderfer’s ERG
A)E-Existence need - There are related to
Theory of
Motivation provision of basic material requirement
of human being and are related to
Maslow’s Physiological and safety
needs.
 A)R-Relatedness - This need is related to desire of
an individual to maintain sound interpersonal
relationship. It is related to Maslow’s, Social need

Alderfer’s ERG and External component of Esteem need i.e.,

Theory of status, recognition and attention.

Motivation B)G-Growth - Growth is an intrinsic desire for

personal development. It is related to intrinsic
component of Esteem Need like advancement,
self-respect, autonomy, achievement and self-
actualization need.
 Evaluation of Alderfer’s Erg Theory of Motivation:
(a) Alderfer advocated three need patterns of an
individual as against five steps proposed by Maslow.
Alderfer’s ERG (b) Alderfer recommends that all the needs, need
Theory of not be in rigid stepwise progression. Any need may
Motivation
be stronger and individual is forced to fulfill that
need.

(c) More than one need may be operative at any

one time.
 Fredrick Herzberg and his associates developed
Motivation Theory based on two main factors in late
1950’s. This theory is also known as Two Factor
Herzberg’s
Theory. Herzberg carried out research in nine
Motivation—
Hygiene Theory different organizations where 200 respondents
(Two Factor Theory) comprising accountants and engineers were subjects.

Herzberg concluded, “There are two types of

needs, independent of each other”.
 Fredrick Herzberg and his associates developed
Motivation Theory based on two main factors in late
1950’s. This theory is also known as Two Factor
Herzberg’s
Theory. Herzberg carried out research in nine
Motivation—
Hygiene Theory different organizations where 200 respondents
(Two Factor Theory) comprising accountants and engineers were subjects.

Herzberg concluded, “There are two types of

needs, independent of each other”.
 a) Motivational Factors: There is a set of job
conditions, which operates primarily to build strong
motivation and job satisfaction. These factors are
called motivational factors. They are intrinsic in
nature and help increase one’s output.
Herzberg’s
Motivation—  These factors have positive effect on morale,
Hygiene Theory productivity, and job satisfaction and overall
(Two Factor Theory) efficiency of the organization.
 Advancement Recognition.
 Possibility of Growth
 Work Itself Responsibility
 b. Maintenance Factors: There are some job
conditions which operate primarily to dissatisfy
Herzberg’s employees when these conditions are absent. These
Motivation— factors are also called hygiene factors.
Hygiene Theory
(Two Factor Theory)  When these factors are present, they do not motivate
in a strong way, when absent they dis- satisfy, that
is why these factors are called dis-satisfiers. These
factors are.
 These factors are.
 Company Policy and administration.
 Salary.
Herzberg’s  Interpersonal Relationship with superiors
Motivation—
 Interpersonal relationship with peers.
Hygiene Theory
(Two Factor Theory)  Interpersonal relationship with subordinates.
 Job security.
 Personal Life.
 Working condition.
 Status.
 McClelland’s theory of needs was developed by David
McClelland and his associates. He proposed a theory of
motivation that is closely associated with learning
McClelland’s concept.
Theory of
motivation He believes that many needs are acquired from the
culture. Three of these learned needs are the for
achievement (n Ach), the need for affiliation (n Aff),
and the need for power (n Pow).
 According to McClelland when a need is strong in a
person, its effect is to motivate the person to use behavior
that leads to its satisfaction. It looks at three needs:
McClelland’s 1. Need for achievement (n Ach) is the drive to excel, to
Theory of achieve in relationship to a set of standards.
motivation
2. Need for power (n Pow) is the need to make others
behave in a way they would not have otherwise.
3. Need for affiliation (n Aff) is the desire for friendly
and close interpersonal relationships.
 Goal setting theory

 Goal setting theory is a framework that explains how setting

specific and challenging goals can lead to higher
motivation and performance.

CONTEMORARY  This theory suggests that setting clear and measurable goals
THEORIES OF can direct attention, mobilize effort, increase persistence, and
MOTIVATION foster the development of strategies to achieve those goals.

 The key components of goal setting theory include setting

specific and challenging goals, receiving feedback on
progress, and having the ability and commitment to achieve
the goals.
  But why are people motivated by difficult goals?
 First, challenging goals get our attention and thus tend to help
us focus.

 Second, difficult goals energize us because we have to work

CONTEMORARY harder to attain them.

THEORIES OF  Third, when goals are difficult, people persist in trying to
MOTIVATION attain them.

 Finally, difficult goals lead us to discover strategies that help

us perform the job or task more effectively. If we have to
struggle to solve a difficult problem, we often think of a better
way to go about it.
 Self-efficacy Theory
 Self-efficacy theory, developed by psychologist Albert
Bandura, refers to an individual's belief in their own
capability to successfully perform a specific task or
Self-efficacy Theory achieve a particular goal.

 According to this theory, people with high self-efficacy

are more likely to approach difficult tasks as challenges
to be mastered rather than as threats to be avoided.
  Self-efficacy influences how individuals think, feel,
and behave in various situations.

 Factors that can impact self-efficacy include past

Self-efficacy Theory
experiences (Enactive mastery ), vicarious experiences
(observation of others), verbal persuasion, and
physiological states.
 Equity theory
According to equity theory individuals compare
their job inputs and outcomes with those of others
and then respond to eliminate any inequities.

Equity theory Employees perceive what they get from a job

situation (salary levels, raises, recognition) in
relationship to what they put into it (effort, experience,
education, competence), and then they compare their
outcome–input ratio with that of relevant others.
 If we perceive our ratio to be equal to that of the
relevant others with whom we compare ourselves, a
state of equity exists; we perceive that our situation is

Equity theory fair and justice prevails.

When we see the ratio as unequal and we feel under-

rewarded, we experience equity tension that creates
anger. When we see ourselves as over-rewarded,
tension creates guilt.
 According to Stacy Adams proposed that this
negative state of tension provides the motivation to do

Equity theory something to correct it.

The referent an employee selects adds to the

complexity of equity theory. There are four referent
comparisons:
  Self–inside. An employee’s experiences in a
different position inside the employee’s current
organization.
 This comparison involves an employee's
evaluation of their current situation based on their
Equity theory past experiences in different positions within the
same organization.
 For example, an employee may assess their
current workload by comparing it to the
responsibilities they had in a previous role within
the company.
  Self-outside: the comparison, individuals evaluate
their own situation by comparing themselves to
others in similar positions or roles.
Equity theory  For example, an employee may compare their
salary to the average salary of professionals in the
same industry to assess whether they are being
fairly compensated.
  Other-inside: In this comparison, individuals
compare themselves to a specific reference person
who is typically someone they know personally,
such as a coworker, friend, or family member.
Equity theory  For instance, an employee may compare their
workload or recognition at work to that of a close
colleague to determine if they are receiving
equitable treatment in comparison to that specific
individual.
  Other–outside. Another individual or group of
individuals outside the employee’s organization. In
this comparison, an individual evaluates their
situation by comparing themselves to individuals or
Equity theory groups outside their organization.

 For instance, an employee may compare their salary

or benefits to industry standards or benchmarks
outside their company to determine if they are being
treated fairly in relation to external norms.
 Vroom’s Expectancy Theory
 The Vroom Expectancy Theory, developed by
Vroom’s Victor Vroom, is a motivation theory that
Expectancy focuses on the relationship between
Theory individuals' expectations about their efforts
and performance outcomes.
  Vroom’s Expectancy theory says that the strength of a
tendency to act in a certain way depends on the strength
Vroom’s of an expectation that the act will be followed by a given

Expectancy Theory outcome and on the attractiveness of that outcome to the

individual.
  In more practical terms, employees will be motivated to
exert a high level of effort when they believe it will lead
Vroom’s to a good performance appraisal; that a good appraisal
Expectancy will lead to organizational rewards such as bonuses,
Theory salary increases, or promotions; and that the rewards will
satisfy the employees’ personal goals.
 Key components of the Vroom Expectancy Theory
include:

Effort–performance relationship or Expectancy (E1):

This refers to the belief that effort will lead to

Vroom’s performance.

Expectancy Individuals assess whether they have the capability and

Theory resources to perform a task successfully.

The probability perceived by the individual that

exerting a given amount of effort will lead to
performance.
 Performance–reward relationship or Instrumentality
(E2): This is the belief that performance will lead to
rewards.
Vroom’s Individuals evaluate whether successful performance
Expectancy will result in desired outcomes or rewards.
Theory The degree to which the individual believes
performing at a particular level will lead to the
attainment of a desired outcome.
 Rewards–personal goals relationship or Valence (V):
This is the value or attractiveness an individual places
on the rewards.

It reflects the importance of the outcomes or rewards

Vroom’s
Expectancy to the individual.

Theory The degree to which organizational rewards satisfy

an individual’s personal goals or needs and the
attractiveness of those potential rewards for the
individual.