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T5: Motivation
5.1 5.2 Challenges of Motivation at the workplace Motivation theories: 5.2.1 Needs Hierarchy 5.2.2 ERG 5.2.3 Two Factor 5.2.4 Learned Needs 5.2.5 Four Drive 5.2.6 Expectancy 5.2.7 Goal Setting 5.2.8 Equity 5.2.9 Procedural Justice

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5.1

Challenges of Motivation at the workplace

Work motivation refers to the psychological forces within a person that determines the direction of the persons voluntary behavior, level of effort/intensity and level of persistence in the face of obstacles. Motivating employees has become more challenging in current time due to: i. turbulent working environment with globalization, information technology, corporate restructuring and others changes that have dramatically changed the employment relationship ii. removal of direct supervision as motivational instrument - Traditional: rely on armies of supervisor to closely monitor employees behavior and performance - Modern: need to accommodate educated work force that resents the traditional command-and-control approach iii. lack of understanding about what motivates the new generations of workforce who has different expectations in their workplace

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5.2

Motivation theories:

5.2.1 Needs Hierarchy (Abraham Maslow)

Oct 2008 Based on Maslows Hierarchy of Needs Theory, explain how to enhance an employees motivation. (5m) Assumptions: i. 5 natural/inborn needs are arranged in a hierarchy of importance ii. when a person satisfies a lower level need, the next higher need becomes the primary motivator and remains so even if never satisfied Practical Application: - needs are related to each other & should be studied in isolation as human behavior is typically initiated by more than one needs and with varying degrees of influence - people are naturally motivated to reach their potential and that organization need to be structured to help people continue and develop their motivation e.g. take away bureaucracy & allow more freedom to decision making in order to reach self actualization - managers need to understand that each employees needs differ, therefore identify the need & help employee to satisfy it to get the desired behavior to be performed. Limitation: Needs hierarchies are unique not universal because needs are strongly influenced by each individuals' personal values e.g. some people seem preoccupied with social status even though they haven't fulfilled their lower needs.

Slide 4 Compare Maslow, Alderfer, Herzberg & McClelland: Maslow

S.Actualization Growth S.Esteem Social Security Existence Physiological Relatedness Hygienes Motivators Power Affiliation

Alderfer

Herberg

McClelland
Achievement

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5.2.2 ERG (Clayton Alderfer)

Assumptions: i. needs are arranged in a hierarchy but confined to 3 levels of existence, relatedness and growth ii. people can progress up the hierarchy and can regress down the hierarchy if fail to fulfill higher needs and needs at more than one level can be motivators simultaneously at any one time Practical Application: - manager needs to understand that when individual has difficulty satisfying a higher level need, the motivation to satisfy their lower level needs will increase Limitation: Similar to Maslow, except that ERG Theory seems to explain human motivation better because it is easier to cluster human needs into 3 instead of 5 categories

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5.2.3 Two Factor Theory (Frederick Herzberg)

Apr 2006 Explain how Herzbergs Two Factor Theory could help a manager improve the motivation level among employees? (10m) Oct 2006 a) Recognition of good performance can be awarded orally, written or in material form to subordinates. Give an example of each. (3m) b) Describe a possible situation where recognition can be used as a good motivator at the workplace. (5m) c) Intrinsic forms of reward are better motivators than extrinsic forms of rewards. Discuss this statement. (12m)

Slide 7 Assumptions: i. each employee has 2 sets of needs i.e. motivator needs and hygiene needs ii. an employee can be both satisfied & dissatisfied with the job at the same time Practical Application: - employees are satisfied when motivator's needs are met but dissatisfied when not met - employee will not be dissatisfied when hygiene needs are met but dissatisfied when not met - it is possible for an employee to be both satisfied and dissatisfied with the job simultaneously at the same time Limitation: Assume that hygiene factors are merely to stop dissatisfaction, i.e. not able to motivate. However in reality many employees are motivated by various hygiene factors, especially financial rewards which are potentially powerful motivators.

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5.2.4 Learned Needs (David McClelland)

Apr 2010 Describe 2 learned needs in McClellands Learned Needs Theory. (5m) Assumptions: i. needs can also be strengthened through reinforcement through the process of growing up, parental styles and social norms, even though needs typically originate from drives ii. 3 learned needs are Achievement, Affiliation and Power Practical Application: - manager needs to understand that the presence of need for achievement (e.g. perform challenging task alone, choose risky tasks rather than those with predictable result, etc), affiliation (e.g. desire approval from others, seek good relations with colleagues, etc) and power (e.g. desire to exert control over others, highly concerned about maintaining leadership position, etc) are in varying degree with different employee. - these 3 needs are learned rather than instinctive - all 3 needs can be strengthened through learning gained in training programs with the use of business games, reference group, etc

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5.2.5 Four Drive (Paul Lawrence and Nitin Nohria)

Apr 2009 Discuss 2 fundamental drives of Four-Drive Theory. (8m) Assumptions: i. every individual has four natural/inborn drives i.e. the drive to: acquire bond learn defend ii. these natural 4 drives stimulate/activate emotions that individual control through a skill set that considers social norms, past experience and personal values Practical Applications: - managers should ensure that individual jobs and work place provide a balanced opportunity to fulfill these 4 drives to: acquire (eg. acquire new knowledge or skills, etc) bond (eg. involvement in group discussion or meeting, etc) learn (eg. formal and informal training provided, etc) defend (eg. allow employees to defend themselves, etc)

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Four-Drive Theory of Motivation: Social Norms Drive to Acquire Drive to Bond Drive to Learn Drive to Defend Mental skill set resolves competing drive demands Goal directed choice & Effort Personal Values Past Experience

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5.2.6 Expectancy (Victor Vroom)
Apr 2009 Discuss Expectancy Theory of motivation. (12m) Assumptions: 3 components are combined to determine motivation: a) Effort-to-Performance (E to P) (Expectancy :employees belief that his effort will result in a particular level of performance) b) Performance-to-Outcome (P to O) (Instrumentality: employees believes that the higher their performance, it will result in higher outcome) c) Outcome Valence (Valence: employees are motivated only if they receive positive valence and avoid negative valence) Practical Application: Help employee increase motivation by managing: i. E-to-P Since employees will be motivated to perform desired behaviors at a high level only if they think they can do so, therefore manager need to boost employees ability and self confidence/self efficacy & regularly remind them that they can perform at a high level successfully if they try hard enough. ii. P-to-O Manager needs to make sure that high performing employees do in fact receive the higher outcomes entitled to them. Manager need to let employees that outcome/rewards are performance based by showing clearly how much outcomes will result from differing level of performance. iii. Outcome valences Manager to study what is employees positive valence and use it as rewards. Limitation: Difficulty in recognizing almost every possible differing level of performance to match how much outcomes are entitled to employees.

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5.2.7 Goal Setting

Oct 2008 Discuss 3 conditions that organizations must have in order to ensure the effective of goal setting. (15m) Assumptions: i. Motivate employees and clarify their role perceptions by establishing performance objectives. It potentially improves employee performance in 2 ways: by increasing the intensity and persistence of effort by giving employees clearer role perceptions ii. goals are more effective with 6 conditions: specific goals, relevant goals, challenging goals, employee commitment, employee participation, feedback given Practical Applications: Participative goal setting is important in some situations. Meaningful feedback should be specific, relevant, timely, credible and sufficiently frequent Feedback can originate from: a) non-social source provide feedback without someone communicating that information (eg. computer printouts, graphic output, etc) is considered more accurate than social sources and less damaging to self-esteem if the feedback is negative b) social source feedback provided either F2F or anonymously by peer, superior, subordinates &/or customer (360 Feedback)

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5.2.8 Equity Theory/Distributive Justice (J.Stacy Adams)

Apr 2008 Discuss how Equity Theory influences an employees motivation. (20m) Apr 2010 Define equity theory. Explain how people respond to feelings of under reward inequity. (15m) Jun 2011 Explain 3 elements of equity theory and give an example of each. (10.5m)

Slide 14 Assumptions: i. the relationship between inputs employee contribute (e.g. effort, time, special skills, experience) and the outcomes employee receives (e.g. salary, bonus, promotion) affect the employee's motivation ii. employees determine feelings of equity by comparing their outcome/input ratio to the outcome/input ratio of some comparison other person/referent Practical Application: - Ratios that are perceived to be proportionally equal (equity) motivate employee to maintain the status quo or increase their inputs - Ratios that are not proportionally equal (inequity either under or over reward) result in tension that motivates employee to reduce the inequities Equity: Inequity: Oa Ia Oa Ia Oa Ia = < Ob Ib Ob Ib Ob Ib (under reward/over work)

>

(over reward/under work)

Slide 15 How employee can reduce inequities or try to achieve equity: i. reduce our inputs ii. increase our outcomes iii. increase the comparison others inputs iv. reduce the comparison others outcomes v. change our perceptions of inputs or outcomes vi. change the comparison other vii. leave the job or force the comparison other to leave

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5.2.9 Equity Procedural Justice

Apr 2006 Explain 2 factors that are central to procedural justice theory. Support your answer with examples of managers behaviors that are important to help reduce injustice feelings of employees towards procedure used. (10m) Assumptions: Employees determine motivation by looking at the fairness in the procedures used to decide the distribution of resources among employees. Employees are concern about: i. interpersonal treatment of employees by those distributing the resources/outcomes ii. the extent to which managers explain their decision to employees Practical Application: How organizations can improve procedural justice: i. gives employees opportunity to speak their mind ii. decision maker need to be perceived as unbiased, they need to rely on complete and accurate information, applies existing policies consistently and listened to all sides of dispute if any. iii. allow employees that still feel unfairness in the distribution of resources to appeal the decision to a higher authority iv. employees given full explanation of the decision in distribution of resources/outcome v. manager show respect for all concern voiced by employees

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Case Study: Does Seniority Matter Harith had been employed by TRIK for 5 years & is now a senior programmer analyst. He works hard to reach his current position. He is pleasant, helpful & well-liked by his subordinates & colleagues. He values cooperation & is a team-player. He accepts opinions & suggestions from his subordinates as well as always providing positive feedbacks. He reprimands his employees. He loves his job very much & constantly keeps up with the latest issues pertaining to his job. In addition, he likes working with the company & thoroughly appreciates the creative demands required in his job. One Sunday morning, during a squash game with his colleague, Rashid, Harith discovered that his department had hired a recent university graduate as a programmer analyst. He found out that the new recruits starting salary was only RM20 a month lower than his own. Even though Harith is good natured, seldom complain & is hardworking, he was bewildered & was very dismayed by the salary given to the new recruit. He feels that the company is not being fair to him. He decided to meet old time friend, Iskandar, the Human Resource Manager to clarify the news & demand explanations. Iskandar apologetically admitted the news & attempted to explain to Harith the companys dilemma. Harith, the market for a programmer analyst is very tight & in order for the company to attract qualified candidates, the company has offered a premium salary. We desperately needed another analyst & this would be the only way we could get one. No hard feelings, my friend. Harith then inquired from Iskandar whether his salary would be adjusted accordingly. Iskandars reply was, Your salary will be evaluated at the regular time. You are doing a great job, so keep it up. I am sure the boss will recommend you for a raise, just be patient, ok. Harith was speechless. He later thanked Iskandar & left the office dragging his feet while shaking his head. He wonders how his future with TRIK would be like! Question 1. Everybody needs to be treated fairly. Discuss a motivational theory that is the most appropriate in explaining the case. (10m) 2. Explain 5 alternative steps that Harith can implement in correcting his feeling of inequity. (10m) 3. Assuming that you are Hariths superior, what can you do to create a climate of motivation within your organization? (10m)