Consumer Needs

Sometimes a business is started to satisfy consumer needs.

Needs are things that are necessary for survival.
You need food, clothing.
Wants are things that are not necessary for survival, but add comfort and pleasure to our
lives.
You want a pizza, or new computer
-- Also write Maslows Theory
Define the Scope - Mission Statement
Gather Raw Data Interviews, Focus Groups , Observation
Interpret Raw Data - Need Statements
Organize the Needs - Hierarchy
Establish Importance Surveys, Quantified Needs
Reflect on the Process - Continuous Improvement

Motivation

Motivation is the characteristic -- that helps you achieve your goal.

It is the drive -- that pushes you to work hard.

It is the energy -- that gives you the strength to get up and keep going - even
when things are not going your way.

An activated state -- within a person -- that leads to -- goal directed behaviour.

3 common aspects of motivation

1.
2.
3.

Effort: concerns with magnitude or intensity of employees work related behaviour.

Persistence: concerns sustained efforts employee manifested in work related
activities.
Direction: Quality of an employees work i.e. investment of sustained efforts in a
direction that benefits the employer.

3 major theories of motivation

1.
2.
3.

Content theory: What motivates us?

Process theory: Why and how motivation occurs?
Reinforcement theory: How outcomes influence behaviours.

Content Theory
Mainly focuses on the internal factors that energize and direct human behavior
1.
2.
3.
4.

Maslow's hierarchy of needs

Herzberg's motivator-hygiene theory
Alderfer's ERG theory
McClelland's three-needs theory

(1) Maslows Theory

We each have a hierarchy of needs that ranges from "lower" to "higher."
As lower needs are fulfilled there is a tendency for other, higher needs to emerge.
Maslows theory maintains that a person does not feel a higher need until the needs of the
current level have been satisfied.
Physiological needs: The need for food, shelter, and clothing.
Safety Needs: Provide a working environment which is safe, relative job security, and
freedom from threats.
Social Needs: Generate a feeling of acceptance, belonging by reinforcing team dynamics.
Esteem Motivators: Recognize achievements, assign important projects, and provide
status to make employees feel valued and appreciated.
Self-Actualization: Offer challenging and meaningful work assignments which enable

innovation, creativity, and progress according to long-term goals.

PSS

Limitations and criticism

Maslows hierarchy makes sense but little evidence supports its strict hierarchy.
Research has challenged the order imposed by Maslows pyramid.
As an example, in some cultures, social needs are regarded higher than any others.
Little evidence suggests that people satisfy exclusively one motivating need at a time.
(2) Motivation-Hygiene Theory
Frederick Herzberg performed studies to determine which factors in an employee's work
environment caused satisfaction or dissatisfaction.
Satisfiers: Motivators
Dissatisfies: Hygiene factors
Motivating factors

Achievement
Recognition
Work itself
Responsibility
Advancement
Growth

RAW,

Hygiene Factors

Relationship w/Boss
Relationship w/Peers
Supervision
Salary
Work conditions
Company policy

(3) Alderfer ERG Theory

Existence Similar to - Maslows Physiological and safety needs
Needs satisfied by factors such as food, air, water, pay, and working conditions
Basic material existence requirement.
Relatedness- Similar to - Maslows Social need and external component of esteem need.
Desire for maintaining social and interpersonal relationships
Growth Similar to - Maslows esteem need and self - actualization.
Intrinsic desire for personal development.
ERG theory => More than one need may be operative at the same time.
Alderfer also deals with frustration regression.
I.e., a higher order need is frustrated, an individual then seeks to increase satisfaction of a
lower order need.

(4) McClellands Need Theory

Need For Achievement:
Desire to excel and accomplish something difficult.
A need to accomplish and demonstrate competence or mastery
Need For Affiliation:
Desire to spend time in social relationships and activities.
A need for love, belonging and relatedness
Need For Power:
Desire to influence, coach, teach, or encourage others to achieve.
A need for control over ones own work or the work of others

Process / Cognitive Theories of Motivation

(1) Reinforcement theory
Argues that the behaviour that results in rewarding consequences is likely to be
repeated.
Whereas behaviour that results in punishing consequences is less likely to be
repeated.
There are four types of reinforcement that can result from behaviour .i.e.
* Positive reinforcement,
* Avoidance,
* Punishment and
* Extinction.
Positive reinforcement - Rewards desirable behaviour.
Ex: a pay raise or promotion, is provided as a reward for positive behaviour

PAP

With the intention of increasing the probability that the desired behaviour will be repeated.
Avoidance - is an attempt to show an employee what the consequences of improper
behaviour will be.
If an employee does not engage in improper behaviour, he or she will not experience the
consequence.
Punishment - is an attempt to decrease the likelihood of a behaviour recurring.
By applying negative consequences.
Ex: threats, docking pay, suspension
Extinction - is basically ignoring the behaviour of a subordinate
Providing either positive or negative reinforcement.
This technique should only be used when the supervisor perceives the behaviour --- as
temporary, not typical, and not serious.
Ex: Classroom teachers often use this technique when they ignore students who are
acting out to get attention.
(2) Vroom's Valence / Expectancy / VIE Theory
Indicates that ones level of motivation depends on:
The attractiveness of the rewards sought and
The probability of the rewards obtained.
In the case of employees feeling that they get the value from business organizations and
they put higher effort of work effort.
Is based on three key variables:
(1) Valence,
(2) Instrumentality and
(3) Expectancy.
Valence - The feeling about specific outcomes is termed valence. People prefer certain
outcomes from their behaviour to others.
Instrumentality - is the association between first-level outcomes and second-level
outcomes.
Expectancy - is a relationship between a chosen course of action and its predicted
outcome.

(3) Equity theory

Expresses that individuals perceptions on how they are being treated by the organization
comparing to other employees in the similar organizational level.
Motivation is influenced significantly by others rewards as well as by ones own rewards.
Most research has focused on pay, but employees seem to look for equity in the
distribution of other rewards.
Historically, equity theory focused on distributive justice. But increasingly equity is thought
of from the standpoint of organizational justice.
Managers should consider openly sharing information on how allocation decisions are
made, following consistent and unbiased procedures.

(4) Goal setting theory

Individuals goal directed effort depends on: Goal difficulty, specificity, acceptance and
commitment -- combine.
This effort when complemented by Appropriate organizational support and individual
abilities --- result in good performance.
A theory that says that specific and difficult goals with feedback, lead to higher
performance.
According to Edwin Locke, intentions to work toward a goal are a major source of work
motivation.
Goals tell an employee what needs to be done and how much effort will need to be
extended.
More difficult the goal, higher the level of performance because:

Challenging goals help to get our attention and tend to help us focus.

Difficult goals energize us because we have to work harder to attain them.

When goals are difficult, people persist in trying to attain them.
Difficult goals lead us to discover strategies that help us to perform the job or task more
efficiently.
People do better when they get feedback on how well they are progressing toward their
goals because feedback helps to identify discrepancies between what they have done and
what they want to do; that is , feedback acts to guide behavior.
Self-Efficacy Theory - (also known as social cognitive theory or social learning theory)
Refers to an individuals belief that he/she is capable of performing a task.
Higher your self-efficacy, the more confidence you have in your ability to succeed in a task
and respond to negative feedback with increased effort and motivation.