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Motivation theories can be classified broadly into two different perspectives: Content
and Process theories. Content Theories deal with what motivates people and it is
concerned with individual needs and goals. Maslow, Alderfer, Herzberg and McCelland
studied motivation from a content perspective. Process Theories deal with the
process of motivation and is concerned with how motivation occurs. Vroom, Porter
& Lawler, Adams and Locke studied motivation from a process perspective.
When motivation theory is being considered the first theory that is being recalled is
Maslows hierarchy of needs which he has introduced in his 1943 article named as A
Theory of Human Motivation. According to this theory, individual strives to seek a
higher need when lower needs are fulfilled. Once a lower-level need is satisfied, it no
longer serves as a source of motivation. Needs are motivators only when they are
unsatisfied.
In the first level, physiological needs exist which include the most basic needs
respected and to have self-respect. Achievement needs, respect of others are in this
level.
In the top-level, self-actualization needs exist. This level of need pertains to
Needs for achievement: The person who have a high need for achievement
seeks achievement and tries to attain challenging goals. There is a strong need for
feedback as to achievement and progress, and a need for a sense of accomplishment.
The person who have a high achievement need likes to take personal responsibility.
Needs for affiliation: The person who have a high need for affiliation needs
command other people. Most managers have a high need for power.
Although these categories of needs are not exlusive, generally individuals develop a
dominant bias or emphasis towards one of the three needs. Entrepreneurs usually have
high degree of achivement needs.
Incentive Theory
Incentive theory suggests that employee will increase her/his effort to obtain a desired
reward. This is based on the general principle of reinforcement. The desired outcome is
usually money. This theory is coherent with the early economic theories where man is
supposed to be rational and forecasts are based on the principle of economic man.
will lead to a particular outcome, multiplied by the preference or valence that person has
for that outcome.
Three components of Expectancy theory are:
1.
Expectancy: E -> P. The belief of the person that her/his effort (E) will result in
attainment of desired performance (P) goals.
2.
Instrumentality: P -> R. The belief of the person that she/he will receive a
reward (R) if the performance (P) expectation is met.
3.
Valence: The value of the reward according to the person. (e.g. Is the reward
attractive to the person?)
Setting specific goals (e.g. I want to earn a million before I am 30) generates
higher levels of performance than setting general goals (e.g. I want to earn a lot of
money).
2.
The goals that are hard to achieve are linearly and positively connected to
performance. The harder the goal, the more a person will work to reach it.
Adams Equity Theory
Developed by John Stacey Adams in 1963, Equity Theory suggests that if the individual
perceives that the rewards received are equitable, that is, fair or just in comparison with
those received by others in similar positions in or outside the organization, then the
individual feels satisfied. Adams asserted that employees seek to maintain equity
between the inputs that they bring to a job and the outcomes that they receive from it
against the perceived inputs and outcomes of others.