Motivating Your Team

Motivating Your Team
Paul Newton
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2 MOTIVATING YOUR TEAM
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MOTIVATING YOUR TEAM 3
Preface
This eBook describes five theories that deal with team motivation and
commitment. Each of these can help you to evaluate the various factors that
affect the productivity of the people in your team.
It describes following tools and techniques:
 Theory X and Theory Y
 Hertzberg’s Motivators and Hygiene Factors
 Three Component Model Commitment
 Vroom’s Expectancy Theory
 Maslow’s Hierarchy of Needs
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Table of Contents
Preface 3
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Introduction 5
Theory X and Theory Y 7
Herzberg’s Motivators and Hygiene Factors 12
The Three-Component Model of Commitment 19
Vroom’s Expectancy Theory 24
Maslow’s Hierarchy of Needs 30
Other Free Resources 35
References 36
Introduction
This eBook describes five theories that attempt to explain what motivates
employees. This is a complex topic and different theories prioritize different
factors. However, there are some common themes and knowledge of these
theories can help you to lead in a way that develops and maintains
enthusiasm among your team members.
1. Theory X and Theory Y
Motivation is a huge part of success in life, for individuals and

organizations alike. Theory X and Theory Y provide you two
different perspectives that will help understand what motivates the
people who work for you.
Theory X - basic underlying assumption is that people don’t want
to work; they only do so for the money. Whereas, Theory Y –
assumes individuals are highly self-motivated. In the real-world it
is often things are never as clear cut, but these theories help
focus your thoughts.
2. Herzberg’s Motivators and Hygiene Factors
Using the motivator and hygiene factors of Fredrick Herzberg you

can determine what makes you team members either satisfied or
dissatisfied with their roles. It is key to understand these factors
because they create a framework for what the most productive
working environment looks like.
3. The Three-Component Model of Commitment
The Three-Component Model of Commitment offers you the

opportunity to preserve the feelings of commitment that people
brought to the organization when they joined as their time
lengthens. The three components of this theory are affection for
your job, fear of loss and finally a sense of obligation to stay.
Teams that have two or all three of these factors for most of the
individuals will be motivated.
4. Vroom’s Expectancy Theory
Vroom’s Expectancy Theory states that people portray those

behaviors that ensure the expected outcome. This theory has
three variables expectancy, instrumentality, and valence. It is only
when rewards are awarded in proportion to the effort shown that
Vroom hold will your team members be truly motivated.
5. Maslow’s Hierarchy of Needs
Maslow states there are five levels of needs that can be used to
understand the motivations and desires of individuals. The lowest
level of need is biological and physiological, then safety, followed
by belongingness and love, then esteem and the top level being
self-actualization.
Once a manager understand his or her team on a deeper level
he, or she, can keep them motivated long-term by ensuring their
basic needs are met and making it easier for an individual to the
higher levels.
Theory X and Theory Y

Motivation is a huge part of success in life. No matter what it is that you are
doing, you have to have the proper motivation if you are going to succeed in
the end. This applies to individual pursuits in your life, and it certainly
applies to business.
For you as a business owner or manager, you have to think carefully about
the motivation that is present for your employees on a day-to-day basis. Is
your team properly motivated, and what it is that motivates them in the first
place? To get to the bottom of these important questions, you can look to
the help of Theory X and Theory Y.
Theory X Theory Y
•People only work for the •Individuals are highly
money self-motivated
As the name would imply, these two common theories stand in opposition to
one another on the point of motivation. No one doubts the importance of
motivation, but the source of that motivation is the point of great contention
in the business world.
Some managers feel that Theory X has it right, while others are on the side
of Theory Y. In the end, you will have to make up your own mind on this
topic. First, of course, we need to look closely at what each of these
theories says about the topic of motivation in the workplace.
Theory X
To get started, we are going to take a look at the basic ideas behind Theory
X. In this theory, the basic underlying assumption is that people don’t want
to work. Rather than having a positive approach to their jobs, this theory
assumes that people don’t like their jobs and they only work them because
they need money.
Only work for the money
Theory X
Need to be actively managed
Therefore, in this theory of motivation, it is incumbent on the manager or

supervisor to play a ‘hands-on’ role in day-to-day activities. Without active
management and direct supervision, employees will simply do as little as
possible to get by (according to this theory).
When an organization is structured in a way that assumes Theory X is true,

there tend to be a great number of managers and supervisors throughout
the organization. In order to get the best out of the employees, plenty of
management is necessary; meaning the structure of the business can
become quite top-heavy.
Employees in this setting feel pressured and micromanaged, as they know

that they need to perform consistently or risk being replaced. Generally
speaking, employees do not enjoy working for this type of company.
In organizations employees feel

perform consistently
micro-managed &
using Theory X or risk replacement
pressured to
Overall, companies who prescribe to the Theory X approach to

management are in the minority in this day and age. With that said, there
are some types of businesses which require this form of management
structure in order to be successfully.
For example, a company with low-skill workers who are uneducated

may need to use Theory X methods in order to keep their team
moving forward.
Theory Y
As you would expect, Theory Y sees motivation in the opposite manner of
Theory X. Under this theory, the employees are highly self-motivated, and
they need little encouragement from upper management to deliver quality
results on a day-to-day basis.
Theory Y
Accept Self motivation

responsibility high
Employees who are viewed in this framework are happy to come to the
office each day, they look forward to the chance to deliver quality work, and
they take responsibility for the role they play in the organization. As such,
the management structure in businesses, which take a Theory Y approach,
is usually much leaner, as there is less of a need for supervision over
workers who are motivated to do their best each day.
Usually it is companies who employ a collection of educated, talented

workers who are able to view their employees through the Theory Y lens.
Those who feel that they are working toward building a career are more
likely to remain motivated than those who are just ‘punching the clock’ each
day in order to earn a check.
Organizations
employees want to take responsibility for
using deliver quality work the role they play
Theory Y
Micromanagement in a Theory Y setting is not only unnecessary, but it can

actually be counterproductive to the goal of keeping employees happy and
driven to be successful. By backing off and letting the employees shine,
companies in the Theory Y category are usually better off in the end.
Picking a Path
It is very likely that the employees within your business cannot all be put into
one motivation ‘basket’. There are likely departments within your
organization, which contain highly motivated and reliable people, while other
departments may need to be watched closely to ensure they are heading in
the right direction.
So, how should you proceed with your company in terms of keeping your
teams motivated and on track? It might be best to take a blend of the two
approaches.
Unit of highly Need clear

motivated & goals & little
reliable people supervision
Adopt an
approach that
suits each unit's
make-up Repetitive-task Need close supervision
based units & contact
With employees who fit into the motivated and self-reliant category, a
hands-off approach is best. This might apply if you have a department,
which is focused on being creative, such as your marketing team.
On the other hand, if you also have a product assembly line or some other
repetitive-task arena, it is likely that the employees in that setting are not
particularly driven on his or her own. So, with that part of the business, you
may need to keep managers in close contact with the employees at all times
in order to keep operations on schedule.
Tailoring the approach of your management team to the needs and

motivation levels of various departments is a strategy that should pay
off in the long run.
It isn’t as simple as just saying that either Theory X or Theory Y is the ‘right’
theory. In reality, both can be right, given the circumstances, the employees
in question, and the structure of the company as a whole.
It is up to you as a business owner or manager to figure out what it is that

your teams need to be successful, so you can then deliver that to them on a
regular basis. When led correctly based on their underlying motivation, you
should be able to get the best from your teams.
Key Points
- These theories describe two contrasting models of workforce
motivation that form the basis for two different managerial styles.
- Theory X stresses the importance of strict supervision, external
rewards, and penalties.
- Its management style supposes that the average employee has
little to no ambition, shies away from work or responsibilities, and
is individual-goal oriented.
- Theory Y highlights the motivating role of job satisfaction and
encourages workers to approach tasks without direct supervision.
- Its management style supposes that people in the work force are
internally motivated; enjoy their labor in the company, and work to
better themselves without a direct “reward” in return.
- It isn’t as simple as just saying that either Theory X or Theory Y is
the ‘right’ theory.
- In reality, both can be right, given the circumstances, the
employees in question, and the structure of the company as a
whole.
Herzberg’s Motivators and Hygiene Factors

How do your employees feel about their jobs? Do they enjoy coming to work
each day, looking forward to the opportunity to advance their careers? Or,
on the other hand, do they dread the grind of the work week, simply
counting down the hours until they are free for the weekend?
Attitude of staff will be a reflection of the

to work organization's culture
The attitude that your employees hold to their jobs can tell you a lot about
the culture of your company and the work environment that is in place.
Obviously, you would love to have a team full of people who are happy with
their jobs and enjoy the challenge of coming to work each day – however,
that reality is not always each to achieve.
In his Motivators and Hygiene Factors, Fredrick Herzberg attempts to pin

down exactly what it is that will make employees either satisfied or
dissatisfied with their jobs. These points are important to understand
because they create a framework for what kind of working environment is
likely to promote growth and productivity rather than hostility and mediocrity.
Herzberg's Motivators &

Hygiene Factors
aims to identify what satisfied or dissatisfied

makes employees with their jobs
The Factors
To get started, we need to take a look at the factors that have been
determined by Herzberg to contribute to satisfaction and dissatisfaction in
the workplace. First, a list of factors that promotes satisfaction on the part of
employees.
 Recognition
 Achievement
 Interesting work
 Responsibility
 Growth
 Advancement
There is really nothing too surprising on that list. It shouldn’t surprise you
that employees are going to be more-satisfied with a work environment that
allows them to advance into higher positions, feel accomplished on a
regular basis, and be recognized for their efforts.
Satisfaction
Recognition &
achievement
Interesting work &

responsibility
Advancement & growth
All of these things are commonly associated with a positive work

experience, so it makes sense that they would be considered as positive
satisfaction factors.
On the other side of the coin, the list below contains factors believed to
contribute to dissatisfaction.
 Salary
 Supervision
 Company policies
 Job security
 Relationships with supervisors and other employees
 Status within the company
The point at the top of the list might be a bit surprising at first, but it really
shouldn’t be when you stop to think about it.
All employees are going to believe that they are worth more than they
are being paid – so, in turn, salary is rarely seen as a positive factor.
Everyone wants to be paid more, therefore it is natural to look at salary as a

point of dissatisfaction.
The other points on the dissatisfaction list relate in many ways to

micromanagement and a lack of trust in the workplace. Employees like to be
trusted, and they don’t want someone looking over their shoulder at every
turn. When given control of their own responsibilities, dissatisfaction tends
to decrease.
It’s Not One or the Other

You probably are thinking of job satisfaction and job dissatisfaction as being
opposites – an ‘either or’ - kind of proposition. However, according to
Herzberg, that is not actually the case. In this theory, it is proposed that:
Job satisfaction and dissatisfaction are actually two separate things

that are not that closely related.
In other words, if your company takes steps to eliminate some of the factors
causing dissatisfaction, your employees may be less-dissatisfied – but that
doesn’t mean they are actually going to be satisfied with their jobs. This
might sound like a semantic point, but it is crucial to building a healthy and
productive work environment.
Herzberg's Motivators and Hygiene Factors

Theory
sees 'job & 'job

satisfaction' dissatisfaction'
as two separate & unrelated factors
For a company to properly motivate its employees moving forward, there

are two steps that can be taken. First, the company can work to eliminate
job dissatisfaction. Then, once that is complete, the company can work
toward promoting greater job satisfaction. In the end, the goal is to create a
setting where employees are happy, motivated, and able to perform at their
best.
Eliminating Job Dissatisfaction

Not surprisingly, the process of eliminating as much job dissatisfaction as
possible is going to come down to addressing the points in the list above.
For instance, a good place to start would be to review company policies and
eliminate or adjust those that are getting in the way of productivity and
happiness.
Is there excess ‘red tape’ in your company that is simply causing

stress without a real benefit?
If so, streamlining the company handbook is a big step in the right direction.
Other basic steps that can be taken toward eliminating dissatisfaction

include:
 Adjusting wages to keep them in line with industry norms,
 Providing as much job security as possible,
 Enabling all employees to complete meaningful work,
 and more.
Overall, the key to this initiative is to strip away as many of the frustrating
and counterproductive elements out of the workplace as possible. Free from
distractions and points of contention, your teams should be better able to
produce great work.
•To motivate • Then start to

staff Reducing red remove other RESULT -
managers tape frustrations HIGHLY
MOTIVATED
need to
STAFF
• Start by
reviewing
policies & bring pay in • remove as
Remove many
procedures line market
dissatisfaction 'frustration'
rates
elements as
possible
Promoting Satisfaction
With the work from the previous section out of the way, you can now move
your attention on to the issue of building up satisfaction. Your employees
should now be happier overall with their jobs thanks to the process from
above, but that doesn’t mean they will be truly satisfied with their
employment.
In the quest for satisfaction, you can do a number of different things

depending on your business, your teams, and your resources.
One simple step is to regularly recognize the efforts of specific team

members when they go above and beyond their standard job
description.
Spreading responsibility throughout the company and making sure that

everyone feels they have a vested interest in the business is crucial. If
employees in your company wish to move up over time, provide them with
the training and resources necessary to make that happen.
Promoting Employee Satisfaction
Say 'thank you' for work well done
Recognize when someone has over performed
Responsibility with necessary authority to achieve
Provide personal development training/mentoring
Ensure staff have vested interest in organization's success
It really isn’t much of a secret that employees who are satisfied with their
jobs are going to work harder and be more productive. However, you can’t
expect them to just be satisfied because they are taking a paycheck home –
you need to give them reasons to be motivated and excited each day.
Using the factors included in this theory by Herzberg is a great way to move
your business in the correct direction from an employee satisfaction
standpoint.
Key Points
- Herzberg’s motivation-hygiene theory, also known as the two-
factor theory, states that there are certain factors in the workplace
that cause job satisfaction, while a separate set of factors cause
dissatisfaction and these factors act independently of each other.
- The factors that promote satisfaction include: recognition,
achievement, interesting work, responsibility, growth, and
advancement.
Key Points cont.

- Those that contribute to dissatisfaction include: salary,
supervision, company policies, job security, relationships with
supervisors and other employees, and status within the company.
- In this theory, it is proposed that job satisfaction and
dissatisfaction are actually two separate things that are not that
closely related.
- The key to eliminating dissatisfaction is to strip away as many of
the frustrating and counterproductive elements out of the
workplace as possible.
- Increasing satisfaction can best be achieved by recognizing effort
and spreading responsibility as much as possible including
providing opportunities for professional development.
The Three-Component Model of Commitment

As an owner, or even a high-level manager, it is easy for you to be
committed to your company. There are likely financial and other rewards
waiting for a job well-done from your perspective. However, that might not
be true for everyone in your organization.
Some of the employees near the ‘bottom of the ladder’ may not feel the
same kind of commitment to your business, and it can show in their
performance. To make sure your company has the best possible chance at
success, you need to make sure that your teams are as committed as
possible to the overall vision for the business.
Organizations •ensure that from top to bottom

everyone is as committed as
that succeed possible to its vision
Generally speaking, an employee is going to feel highly committed to their

job when they first begin working within a company. Your new hires are
eager to please, excited about the opportunity, and optimistic about the
future.
However, those feelings tend to change over time, especially if their career
path doesn’t follow the trajectory they had expected. So what can be done?
By using the Three-Component Model of Commitment, you can

work toward preserving the feelings of commitment that your
employees had when they were first hired in to the company.
Quite obviously, given the name of the model, there are three components,
which make up this theory on motivation. Those three components are listed
below –
 Affection for your job
 Fear of loss
 Sense of obligation to stay
A person may feel that they are committed to their job, and their
organization as a whole, for one or more of the factors listed above. When
two or even all three of these factors are relevant for a large percentage of
your staff, you will likely be in a good position with regard to having plenty of
motivation within your team.
Three-Component Model of Commitment
Affection for your Sense of

Fear of loss
job obligation to stay
To understand this theory in greater detail, we will look at each of the three
components individually below.
Affection for Your Job

Do your employees like their jobs? Have you ever asked them? While there
are many people in the world who have negative feelings about their
employment, there are also plenty of people who love what they do and are
excited to go to work each day.
It isn’t necessarily easy to create an environment that allows people to love

their work, but when you do, you will wind up with a staff that is motivated
and driven to make each day the best that it can be.
Affection for a job stems not just from the actual work itself, but also from
the culture of the business as a whole and the people to make up the
business. A big part of looking forward to going to work each day comes
from the enjoyment that an individual gets from sharing time with his or her
co-workers.
Affection for Your Job
• Affinity with work you do

• A sense of self fulfilment
• Culture of organization
• Gives you enjoyment
If you are able to foster positive, meaningful relationships within your staff,
those relationships can go a long way toward keeping your team committed
to the organization as a whole. Rather than feeling like they are simply
punching the clock each day, your employees will start to value the social
experience they get from work – which will help to shift their overall view of
the job.
Fear of Loss
Fear is one of the most-powerful motivators in the world. You don’t want to
instill fear in your employees by threatening them with termination after
every mistake, however – instead, you want to have them –
Feeling like they would lose too much if they were to choose to leave
on their own.
Their level of commitment to the company can actually be moved in a

positive direction by feelings of fear over just how much they stand to lose if
they are no longer employed in their current capacity.
Obviously, this point starts with money. If your employees feel that they are
well-paid in their current jobs – and they don’t believe they could make more
elsewhere – those employees are going to want to stay as long as possible.
Leaving your business would not make sense from a financial perspective if
they are going to have to take a pay cut in the process.
Three-Component
Commitment also people realizing
Model of comes from what they
Commitment
lose by leaving pay & benefits friendships
social
skills & status
standing Fear of Loss
Fear of loss can extend to beyond financial concerns. Employees might also
fear the loss of friendships that they have developed while working inside of
your business. Or, they could even fear that they will lose skills which have
been developed working in their current position – if a new job doesn’t
demand those skills, they will slowly erode away.
Sense of Obligation
This last component to the model can really be summed up in just one word
– loyalty. On this point, you may have employees who choose to stay
because they simply feel loyal to the company as a whole.
Even if they are not particularly happy with their job, or if they feel like better
opportunities might be waiting out there somewhere to be explored, an
employee could choose to stay for no other reason that basic loyalty.
Sense of IS
Obligation LOYALTY
Where does this loyalty come from? It could be that you took a chance on
hiring an individual when they really didn’t have much experience in the
industry. By giving them a chance, you might have built up some good will
that they wish to pay back by sticking with you for the long run. Or, if you
invested in the employee monetarily (such as by paying for education), they
may feel like they owe it to you to stick around as gratitude for your
assistance.
Building up a sense of commitment for one or more of the reasons listed

above is one of the most powerful things you can do as an owner or
manager. No business wants to have a high degree of turnover within their
staff, yet it can be hard to keep good employees when so many
opportunities are out there to be explored. By creating a setting that
cultivates feelings of loyalty and commitment, you just might be able to keep
more of your staff on board for the long haul.
Key Points
- The three-component model of commitment was created to argue
that commitment has three different components that correspond
with different psychological states.
- The three components are: Affection for the job, fear of loss, and a
sense of obligation to stay.
- Affection for a job stems not just from the actual work itself, but
also from the culture of the business as a whole and the people to
make up the business.
- Fear of loss can extend to beyond financial concerns and include
the loss of friendships that they have developed while working for
the organization.
- Even if they are not particularly happy with their job, or if they feel
like better opportunities might be waiting out there somewhere to
be explored, an employee could choose to stay for no other
reason than simple loyalty.
- All three components influence the length of time that employees
stay with organizations. What is most important for organizations is
to recognize each type of commitment in employees, and to aim to
encourage affection for the job and the organization.
Vroom’s Expectancy Theory

Motivation is essential when faced with any task in life. In or out of the
workplace, it is hard to commit yourself to work on a given task without the
proper motivation. For instance, it may be difficult to convince yourself to
exercise, unless you have the motivation of losing weight. With a clear goal
in front of you (weight loss), your mind may be more willing to commit to an
activity that will be difficult (exercise).
It's To a
hard task without
to commit
proper
oneself
motivation
The concept is the same in the workplace. As an owner or manager, you

need to make sure that your employees can expect positive outcomes when
they commit to working hard all day long.
Without the expectancy of a reward in some form of fashion, it is

unlikely that your team will commit to putting in the effort needed to
produce great work.
This might seem like somewhat of an obvious point, but it is critical to the
health and longevity of your business.
The Theory
In Vroom’s Expectancy Theory, it is stated that individuals are going to
select their behaviors based on the outcomes that they expect as a result of
those behaviors.
As a simple example, imagine one of your employees arriving for work in

the morning. As the day begins, they have two basic options – they can
choose to work hard all day long, going above and beyond what is expected
in order to help the company grow. Or, alternatively, they can do just
enough to get by, meeting their requirements but going no further. Which
path are they going to choose?
Vroom’s
Expectancy
Theory Based on Resulting from
expected those behaviors
outcomes
A person selects
behaviors
Most likely, they are going to select the path that makes the most sense for
them as an individual based on the rewards available. If the rewards for
working hard and working just hard enough to get by are exactly the same,
most people are going to choose to do as little as possible. After all, what is
their motivation to work harder?
Only when rewards that are proportional to the effort given are
available will your employees truly have motivation to strive for their
best.
There are three variables laid out within this theory – Expectancy,
Instrumentality, and Valence. Below, we will look at each of these three
variables in greater detail.
Vroom’s
Expectancy
Theory
Expectancy
The expectancy that one has in their job relates to how much they believe
that their effort will result in a desired performance goal. In other words, if
you set goals for your team to reach, they should believe that working hard
is going to allow them to reach those goals successfully.
There needs to be a direct correlation between effort and success

with regard to performance.
If your employees believe that they won’t be able to reach their goals no
matter how hard they work – whether those goals are too difficult or there
are too many factors out of their control – they are unlikely to give a full
effort each and every day.
For you as a manager, it is important to clearly think about the goals you lay
out in front of your team members. These goals should lead to high
expectancy – a belief that effort is going to translate to success. If the goals
you map out are not achievable for any number of reasons, they will fail to
motivate your team properly.
Instrumentality
Speaking of achieving goals, this next variable has to do with the belief that
a reward will be waiting when a goal is met. It is one thing for your
employees to have goals set in front of them – but it is another thing for
there to be a tangible motivation to hit those goals. The most obvious
example of this kind of motivation is a pay raise.
Trust & belief Will be given

Instrumentality that reward once goal is met
If your employees can reasonably expect to receive more pay when they
are able to hit performance targets, you are very likely to get their best effort
on the job. Other kinds of rewards can include promotions to higher-ranking
positions, or even something as simple as recognition in front of others.
To feel motivated and confident in this variable, your team needs to be able
to trust you first and foremost. They have to believe that you will follow
through with offers of increased pay or any other kind of reward that is made
available when performance standards are met. Also, the performance
standards in question need to be well defined so as to avoid confusion and

conflict with regard to the judgment of performance.
Valence
When dangling a potential performance award in front of your employees,
you need to be sure that the reward, which is offered, is something that is
actually valued by the workers. They are only going to be motivated to work
hard toward the reward you have offered if they actually want that reward in
the first place. Of course, pay increases or bonuses are a pretty safe bet,
but even those might not be as attractive to some workers as others.
REWARD
must be
VALUED
to
motivate
Valence -
Vroom's
Expectancy
Theory
For instance, if you have a team of individuals who are already well paid for
their efforts, those employees might prefer to receive time off as opposed to
a bonus check.
The best way to know what kind of rewards will motivation your team
is simply to ask.
By gaining some insight into what kinds of rewards are going to cause your
employees to work hard on a day in and day out basis, you can be sure to
tailor your offers to suit their desires.
Bringing all three of these variables together properly is what is going to

allow you to have a high level of motivation throughout your company.
When your workers expect that they can meet goals, they know they will be
rewarded for meeting goals, and they value the reward being offered, you
will be headed in the right direction.
Motivation is a powerful thing in the workplace, and it can work both for and
against you depending on the circumstances. Make sure your employees
have plenty of the right kind of motivation and look forward to seeing their
best work.
Key Points
- Vroom’s Expectancy Theory states that individuals are going to
select their behaviors based on the outcomes that they expect as
a result of those behaviors.
- Expectancy theory is about the mental processes regarding
choice, and explains the processes that an individual undergoes to
make choices.
- It explains that individuals can be motivated towards goals if they
believe that; there is a positive correlation between efforts and
performance, the outcome of a favorable performance will result in
a desirable reward that satisfies their need enough to make the
effort worthwhile.
- Vroom uses the variables Expectancy, Instrumentality and
Valence to account for this.
Key Points cont.

- Expectancy is the belief that one’s effort will result in attainment of
desired performance goals.
- Instrumentality is the belief that a person will receive a reward if
the performance expectation is met.
- Valence is the value an individual places on the rewards of an
outcome.
- This theory emphasizes the needs for organizations to relate
rewards directly to performance and to ensure that the rewards
provided are those rewards deserved and wanted by the
recipients.
Maslow’s Hierarchy of Needs

Motivation in business goes far beyond giving your employees a ‘pep talk’ at
the start of each week, or even offering them a bonus for a job well done on
a given project. While it would be great to be able to simply talk your
employees into working hard and staying focused, the reality of the situation
is that human beings are far too complex for that strategy to be effective.
Maslow’s Motivations &

helps you
Hierarchy of understand the
desires of
Needs individuals
Rather, if you are going to be able to keep your employees motivated on an

ongoing basis, you are going to need to understand them on a deeper level
and make sure that their basic needs are being met.
This is where Maslow’s Hierarchy of Needs comes into the picture from a
business perspective. This interesting theory was first developed many
decades ago, but it remains relevant as an important way to understand the
motivations and desires of human beings.
The hierarchy takes the shape of a pyramid with five levels, each level
building on the one previous. Those five levels, in order from bottom to top,
are as follows –
 Biological and Physiological Needs
 Safety Needs
 Belongingness and Love Needs
 Esteem Needs
 Self-actualization
To better understand this theory and how it can be applied to business, we

will take a closer look at each of the five levels in the content below.
Self-
actualization
Esteem Needs
Belongingness & Love Needs
Safety Needs
Biological & Physiological Needs
Maslow’s Hierarchy of Needs
Biological and Physiological Needs

These are the most-basic needs that a human being has while living on
earth. Of course, as a business owner or manager, you aren’t going to have
much to do with these needs being met. Some of the basic life needs that
are included in this first stage of the pyramid are air, food, water, sleep,
warmth, shelter, and so on.
The only way in which you are going to be contributing to these basic needs
as an employer is by making sure your staff has the resources and
opportunity to meet these needs.
In other words, they need to be paid enough money in order to

acquire shelter, food, drink, etc.
Also, they need to have enough time off during a given day to get a proper
amount of sleep. As long as your employees have the opportunity to meet
these needs, you will have done all that you can do.
Safety Needs
In addition to having their simple biological needs met, humans have a need
to feel safe and secure. This security can come from a number of areas,
with things like protection by the police and laws of the government near the
top of the list.
Maslow's for organizations as much stability for

Safety Needs means creating staff as possible
However, stability is another piece of the safety puzzle, which is where you
can come in as a business owner. If you can provide an environment that
feels stable to your employees –
In other words, they feel like they will keep their jobs as long as they
perform adequately – you will be helping them to meet this need.
No one likes to feel unstable or vulnerable, so you don’t want to create a

work environment, which fosters those negative emotions.
Belongingness and Love Needs

Human beings are social creatures, and as such, have a need to feel like
they belong. While many of these feelings are going to come through their
personal life with family and friends, a healthy work environment can also go
a long way toward creating these feelings as well. When someone comes to
work each day feeling excited about spending time with their co-workers,
they are going to feel as though they belong – and this need will be largely
met.
The need to feel a sense of belonging is part of the reason why

working in teams is such a great idea.
Not only do you get to take advantage of the many different ideas that are
held by a variety of your team members, but you can also help them build
relationships that may grow to extend outside of the office. Team building is
not something to be scoffed at in the work setting – it can truly help your
employees to meet one of their most-basic human needs.
Family & friends

Maslow's comes
Belongingness & from
Love Needs
and the workplace
Esteem Needs
As we continue to work our way up the pyramid, we find another need that
can largely be met through the work setting. In this case, that need is -
Esteem, meaning the achievement or status that one attains in life.
Often, that is going to be closely related to their performance at work. A

person who is able to consistently ‘climb the ladder’ while accomplishing
things along the way is going to feel great about what they are doing
professionally.
That confidence and pride will usually extend to the rest of their life, and the
positive emotions that started at work will soon apply across the board.
Self-actualization
At the top of the pyramid, we find the need for self-actualization. Basically,
this need is the feeling that an individual is only going to be completely
satisfied when they are able to live up to their potential.
Personal growth is a huge motivator, as long as the other needs

farther down the pyramid have been met as well.
When someone has the chance to be the best that they can be – in
whatever area of life is being considered – they will feel proud and
motivated to keep getting better. When working in a job that has little to no
limits on what can be accomplished, self-actualization will feel like an
attainable goal.
As a business owner, there is only so much you can do with regard to some
of the steps along the way in this Hierarchy of Needs. However, there are
steps that you can make much easier for your employees to achieve,
including those regarding personal relationships, esteem, and self-

actualization.
achieve the needs of

Organization & relationships, esteem &
its management self-actualization
can make its

easier for
individuals to
When your employees can come to work each day with a feeling of
excitement and optimism regarding what lies ahead, there is a good chance
they will be motivated to give you their best effort.
Key Points
- Maslow’s hierarchy of needs is a motivational theory in psychology
comprising a five-tier model of human needs, often depicted as
hierarchical levels within a pyramid.
- Those five needs, in order from bottom to top, are: physiological,
safety, belongingness, esteem, and self-actualization.
- Physiological needs are the physical requirements for human
survival.
- Safety needs include: personal security, financial security, and
health and well-being.
- According to Maslow, humans need to feel a sense of belonging
and acceptance among their social groups.
- Esteem presents the typical human desire to be accepted and
valued by others.
- Maslow describes this level as the desire to accomplish everything
that one can, to become the most that one can be.
- When working in a job that has little to no limits on what can be
accomplished, self-actualization will feel like an attainable goal.
Other Free Resources

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for your own professional development. Our eBooks, Checklists, and
Templates are designed to help you with the management issues you face
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Mckeown, M. (2nd Ed. 2015) The Strategy Book: How to Think and Act
Strategically to Deliver Outstanding, FT Publishing International
Cadle, J., Paul, D. and Turner, P. (2010), Business Analysis Techniques, 72

Essential Tools for Success, BCS The Chartered Institute for IT.
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Strategy with MyStrategyLab, Financial Times/Prentice Hall.
Kotler, P., Keller, K.L., Brady, M., Goodman, M., and Hansen, T. (2009),
Marketing Management, Pearson Education.
McDonald, M. and Wilson, H. (2011), Marketing Plans: How to Prepare

Them, How to Use Them, 7th Edition, John Wiley.
Campbell, D., Edgar, D., Stonehouse G., (3rd Ed. 2011) Business Strategy:
An Introduction, Palgrave Macmillan
FT Series (1st Ed. 2013), FT Essential Guide to Developing a Business

Strategy: How to Use Strategic Planning to Start Up or Grow Your Business,
FT Publishing International
Aaker, DA., Damien McLoughlin, D., (1st Ed. 2011) Strategic Market
Management: Global Perspectives, John Wiley & Sons
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Effective Decision-Making Economist
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Routledge

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You do not have any right to resell or give away part,

It describes following tools and techniques:

 Theory X and Theory Y

 Hertzberg’s Motivators and Hygiene Factors

 Three Component Model Commitment

 Vroom’s Expectancy Theory

 Maslow’s Hierarchy of Needs

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Theory X and Theory Y 7

Herzberg’s Motivators and Hygiene Factors 12

The Three-Component Model of Commitment 19

Vroom’s Expectancy Theory 24

Maslow’s Hierarchy of Needs 30

Other Free Resources 35

1. Theory X and Theory Y

Motivation is a huge part of success in life, for individuals and

2. Herzberg’s Motivators and Hygiene Factors

Using the motivator and hygiene factors of Fredrick Herzberg you

3. The Three-Component Model of Commitment

The Three-Component Model of Commitment offers you the

4. Vroom’s Expectancy Theory

Vroom’s Expectancy Theory states that people portray those

5. Maslow’s Hierarchy of Needs

Theory X and Theory Y

Only work for the money

Therefore, in this theory of motivation, it is incumbent on the manager or

When an organization is structured in a way that assumes Theory X is true,

Employees in this setting feel pressured and micromanaged, as they know

In organizations employees feel

Overall, companies who prescribe to the Theory X approach to

For example, a company with low-skill workers who are uneducated

Accept Self motivation

Usually it is companies who employ a collection of educated, talented

Micromanagement in a Theory Y setting is not only unnecessary, but it can

Unit of highly Need clear

Tailoring the approach of your management team to the needs and

It is up to you as a business owner or manager to figure out what it is that

Herzberg’s Motivators and Hygiene Factors

Attitude of staff will be a reflection of the

In his Motivators and Hygiene Factors, Fredrick Herzberg attempts to pin

Herzberg's Motivators &

aims to identify what satisfied or dissatisfied

Interesting work &

Advancement & growth

All of these things are commonly associated with a positive work

 Relationships with supervisors and other employees

 Status within the company

Everyone wants to be paid more, therefore it is natural to look at salary as a

The other points on the dissatisfaction list relate in many ways to

It’s Not One or the Other

Job satisfaction and dissatisfaction are actually two separate things

Herzberg's Motivators and Hygiene Factors

sees 'job & 'job

as two separate & unrelated factors

For a company to properly motivate its employees moving forward, there

Eliminating Job Dissatisfaction

Is there excess ‘red tape’ in your company that is simply causing

Other basic steps that can be taken toward eliminating dissatisfaction

 Adjusting wages to keep them in line with industry norms,