Chapter 7

Understanding
Motivation

Introduction
What is Motivation?
One of the most pivotal concerns of modern organizational
research".
Motivation
influences
employee
performance,
employee retention, creativity and problem-solving
and other actions if we combine motivation with
other measures such as commitment
A diverse workforce can be appropriately managed if
Motivation is applied
Key Elements
1.Intensity: how hard a person tries
2.Direction: toward beneficial goal
3.Persistence: how long a person tries

Definitions
A set of energetic forces both within [and] beyond
an individuals being, to initiate work related
behavior, and to determine its form, direction,
intensity, and duration.

Meaning
Work motivation results both from the context
and forces inherent in the person
We cannot observe motivation directly
Application of psychological insights of
motivation

Features of Motivated Behavior

1) Arousal and Goal directedness
2) Patterns of Motivated Behavior and Choice of
Goals
3) Intrinsic or Extrinsic Motivation
4) Persistence
5) Individual, Group, Organizational levels of
Analysis

Arousal and Goal Directedness

Two types of Goal:
1) Achieving something desirable which would lead to
pleasure
2) Avoiding something undesirable which would lead
to pain

Patterns of Motivated Behaviour

and Choice
How can we explain individual differences
in behavior ?
Answer is, Different persons go for different goals and
then for different sets of behavior for achieving those
goals. This choice can become a pattern of individual
behavior and is often repeated.
E.g. Need for good life but some feel life is good when
something is accomplished. Accomplishment and in turn
hard work and diligence, becomes instrumental to achieve
final goal of a good life. Further behavior is directed
towards achieving that goal.

Intrinsic or Extrinsic Motivation

Intrinsic motivation causes people to do something

because they find spontaneous satisfaction from the
activity itself

Extrinsic motivation, in contrast, requires offer of some

outcomes of an act, so that satisfaction comes not from
the activity itself but from the extrinsic outcomes to
which the activity leads

Persistence

The motivated behavior continues until the goal is

achieved through effort sustained over time and in the
face of obstacles and failure

Persistence helps us distinguish motivation form similar

concepts such as job satisfaction

On the other hand it is also possible to find motivated

workers who express dissatisfaction over various aspects
of their work

Individual, Group and

Organizational Levels of Analysis
With increasing popularity of groups and teams as the basic
units of organization and performance, managers need to
understand and Create group motivation and design work
context that creates and maintains group motivation.
There are different views of human nature and they work
differently. Example: Equity Theory

Individual, Group and

Organizational Levels of Analysis

The Importance of Motivation in the Workplace

Determinants of Individual Performance
Motivationthe desire to do the job.
Abilitythe capability to do the job.
Work environmentthe resources needed to do the job.
Need or
deficiency

Search for ways

to satisfy need

Determination of
future needs and
search/choice for
satisfaction

Choice of
behavior to
satisfy need

Evaluation of
need satisfaction

The motivation processes through a series of discreet steps.

Motivational Models

Major Need Theories of Motivation

Fundamental focus of motivation:
deficit created by unsatisfied need
motivated behavior being aimed at restoration of
balance

Major Need Theories of Motivation

Drive Theory

(a) Primary or unlearned needs, which are biological and

cyclical in nature, such as hunger
(b) Secondary or learned needs are developed because of
our interaction with others in our social group such as
family or community

Content Perspectives on
Motivation
These theories may not be valid, but they do
form the basis for contemporary theories
and are still used by practicing managers.

Content perspectives are?

Approaches to motivation that try to answer the
question, What factors in the workplace motivate
people?

Maslows hierarchy of needs

Alderfers ERG Theory
McGregors
Herzbergs Two-factor Theory
McCellands Three Motives

Maslows Need Hierarchy Theory

Abraham Maslows research was actually focused on
human personality, and he suggested that people
differ because they differ in their needs and
motivation. This came to be known as a third force
in understanding human psyche after Freud
proposed that the behavior is explained by the
unconscious desires and the second behavioral
view that behavior is determined by its
consequences.
Maslows theory intuitively appeals to practitioners
and executives, though his theory is based on no
formal research in management. Others also
commented that this theory could not be of
practical use to managers, as it merely classified
needs that everyone has.

Hierarchy of Needs Theory

Abraham H. Maslow, a psychologist in the 1940s
developed the hierarchy of needs theory. This
theory remains valid today for understanding
human motivation, management training, and
personal development.

Maslows Hierarchy of Needs

There is a hierarchy of five needs.
As each need is substantially satisfied, the next
need becomes dominant.
Assumptions
Individuals cannot move to the next higher level until
all needs at the current (lower) level are satisfied
Must move in hierarchical order
Satisfaction Progression
Higher Order
Internal

Lower Order
External

Need Hierarchy and

Organizational Aspects
Needs

Organizational Aspects

Physiological

Work place conditions

Safety

Work safety, security. Insurance

Love/social

Cohesive and supportive coworkers,

supervisor, teams

Self-esteem/Ego Status, responsibilities, recognition

Selfactualization

Job challenge, performance,

advancement, creativity, growth,,
self image

Assumptions of Maslows
Hierarchy

Movement up the Pyramid

Individuals cannot move to the next higher level until
all needs at the current (lower) level are satisfied.
Individuals therefore must move up the hierarchy
in order

Limitations of theory
Five levels of needs are not always present.
The actual hierarchy of needs does not always
conform to Maslow's model.
Ordering or importance of needs is not always the
same.

Alderfers ERG Theory

The theory was developed in the 1969 by a

psychologist Clayton Alderfer. It is an extension of
Maslow's theory.

Three groups of core needs:

Existence (Maslow: physiological and safety)
Relatedness (Maslow: social and status)
Growth (Maslow: esteem and self-actualization)

Removed the hierarchical assumption

Can be motivated by all three at once

Existence Needs
Provides our basic material existence requirements
They include Maslows physiological and safety
needs.
Relatedness Needs
The desire we have for maintaining important
interpersonal relationships
These social and status desires require interaction
with others.
They align with Maslows social need and the
external component.
Growth Needs
An intrinsic desire for personal development
These include the intrinsic component from
Maslows esteem category and the characteristics
included under self-actualization.

Alderfers ERG theory also differs from Maslows

in that:

More than one need may be operative at the same

time.

A lower motivator neednot be substantially

satisfied before one can move onto higher motivators.

ERG theory does not assume that there exists a rigid

hierarchy. A person can be working on growth even
though existence or relatedness needs are unsatisfied,
or all three need categories could be operating at the
same time.

ERG theory also contains a "frustrationregression" dimension. It notes that when a

higher-order need level is frustrated, the
individuals desire to increase a lower-level
need takes place.

In contrast, Maslow's theory includes a

satisfaction-progression component. It
suggests that after satisfying one category of
needs, a person progresses to the next level.

Implications For
Management

If the ERG theory holds, then unlike the

Maslow's theory, managers must recognize
that an employee has multiple needs to satisfy
simultaneously. Further if the growth
opportunities are not provided to employees,
they may regress to relatedness needs.

Theory X and Theory Y (Douglas

McGregor)

Douglas McGregor, an American social

psychologist, proposed in 1960 "McGregor's XY
Theory". This theory still remains central to
organizational development, and to improving
organizational culture.

This theory is a useful and simple reminder of

the natural rules for managing people, which
under the pressure of day-to-day business are all
too easily forgotten.

McGregors Theory X and

Theory Y

Two distinct views of human beings: Theory X

(negative) and Theory Y (positive).
Managers used a set of assumptions based on their
view
The assumptions molded their behavior toward
employees

No empirical evidence to support this theory.

IMPLICATIONS FOR
MANAGERS:

Theory X assumes that lower-level needs

dominate individuals.

Theory Y assumes that higher-level needs

dominate individuals.

McGregor himself held to the belief that Theory Y

assumptions were more valid than Theory X.

There is no evidence to confirm that either set of

assumptions is valid.

Either theory X or theory Y assumptions may be

appropriate in a particular situation.

Herzberg's Motivation - Hygiene

(Two-factor) Theory

Frederick Herzberg and his associates developed the

dual-structure theory in the late 1950s and early1960s.

He believed that an individuals relation to work is

basic and that ones attitude towards work can very
well determine success for failure.

He began by interviewing approximately 200

accountants and engineers in Pittsburgh. He asked
them to recall time when they felt especially
satisfied and motivated by their job and times
when they felt particularly dissatisfied and
unmotivated.

The responses to the questions were recorded and

later subjected to the content analysis.

Herzbergs Two-Factor
Theory

Key Point: Satisfaction and dissatisfaction

are not opposites but separate constructs

Extrinsic and Related to

Dissatisfaction

Intrinsic and Related to

Satisfaction

Herzberg Concluded

The opposite of satisfaction is not dissatisfaction.

Removing dissatisfying characteristics from a job does

not necessarily make the job satisfying.

Criticisms of Two-Factor
Theory
Herzberg says that hygiene factors must
be met to remove dissatisfaction. If
motivators are given, then satisfaction
can occur.

Herzberg is limited by his procedure

Participants had self-serving bias

Reliability of raters questioned

Bias or errors of observation

No overall measure of satisfaction was used

Herzberg assumed, but didnt research, a
strong relationship between satisfaction and
productivity

Difference Between Maslows

and
Issue
Maslow
Herzbergs
Motivational Herzberg
Type of theory
Descriptive
Prescriptive
Theories
The satisfaction
Unsatisfied needs energise
Needs cause performance
behaviour, this behaviour causes
performance
Effect of need satisfaction
A satisfied need is not a motivator
A satisfied
(hygiene) need is
(except self actualisation)
not a motivator, other
satisfied needs are motivators
Need order
Hierarchy of needs
No hierarchy
Effect of pay
Pay is a motivator if it satisfies
Pay is not a motivator
needs
Effect of needs
All needs are motivators at various Only some needs are times
motivators
View of motivation
Macro view deals with all aspects Micro view deals
primarily
of existence
with work related motivation
Worker level
Relevant for all workers
Probably more relevant to
white collar and professional
workers
performance relationship

David McClellands Theory of

Needs
David McClelland is most noted for describing three types
of motivational need, which he identified in his 1988 book,
"Human Motivation". He and his colleagues studied the
role of the Need for Achievement, the Need for Power and
the Need for Afliation in deciding human behaviour.

Bottom Line: Individuals have

different levels of needs in each of
these areas, and those levels will
drive their behavior

1.

Need for Achievement

The drive to excel, to achieve in relation to a set of standards,
to strive to succeed. They have the desire to do something
better or more efciently than it has been done before
Characteristics of high-need achievers:
They have a strong desire to assume personal responsibility
for performing a task for finding a solution to a problem.
They differentiate themselves from others by their desire to
do things better and more efciently.
They tend to set moderately difcult goals and take
calculated risks.
They have a strong desire for performance feedback.
High achievers perform best when they perceive their
probability of success as 50-50. They dislike succeeding by
chance.
They like to set goals that require stretching themselves a little.

2.

Need for Power

The need to make others behave in a way that they
would not have behaved otherwise.
The high need for power is characterized by:
A desire to influence and direct somebody else.
A desire to exercise control over others.
A concern for maintaining leader-follower relations.
They prefer to be placed into competitive and statusoriented situation.

3.

Need for Affiliation

The desire for friendly, co-operative and close personal
relationships. They receive inner satisfaction from being
with friends, and they want the job freedom to develop
these relationships.
Managers with strong Need for Afliation may have
difculty being effective managers.

Matching High Achievers

and Jobs

McClellands Needs Classification

Process Perspectives on
Motivation
Process Perspectives
Focus on why people choose certain behavioral
options to satisfy their needs and how they
evaluate their satisfaction after they have
attained their goals.

Process Perspectives of Motivation

Equity Theory
Expectancy Theory
Porter-Lawler Extension of Expectancy Theory
Goal-Setting Theory
MBO

Equity Theory

John Stacey Adams put forward his Equity Theory

in 1963.
Individuals compare their job inputs (efforts,
training, skills, experience) and outcomes (rewards,
job status, pleasant working conditions, friendly
relationships with coworkers,) with those of others
and then respond to eliminate any inequities.

Referent Comparisons

Self-Inside
The persons experience in a different job in the same
organization
Self-Outside
The persons experience in a different job in a different
organization
Other-Inside
Another individual or group within the organization
Other-Outside
Another individual or group outside of the organization

Choices for dealing with

inequity
1.

Change inputs (slack off)

2.

Change outcomes (increase output)

3.

Distort/change perceptions of self

4.

Distort/change perceptions of others

5.

Choose a different referent person

6.

Leave the field (quit the job)

Propositions relating to
inequitable pay:
1.

2.

3.
4.

Given payment by time, Over-rewarded

employees produce more than equitably
rewarded employees.
Given payment by quantity of production, Overrewarded employees produce less, but do
higher quality piece work.
Given payment by time, Under-rewarded hourly
employees produce lower quality work.
Given payment by time, Under-rewarded
employees produce larger quantities of lowerquality piece work than equitably rewarded
employees

Justice and Equity Theory

 These propositions have generally been supported with a few minor

qualifications.
Inequities created by overpayment do not seem to have a very significant
impact on behavior in most work situations. People have great deal more
tolerance of overpayment inequities then of underpayment inequities or are
better able to rationalize them.
Not all people are equity sensitive.
Employees seem to look for equity in the distribution of other organizational
rewards.

Distributive Justice is the employees perception of fairness

towards the amount and allocation of rewards
Increasingly equity is thought of from the standpoint of Organizational
Justice
Employees perceive their organizations as just when they believe the
outcomes they have received, the way in which the outcomes were
received, are fair.

The other key element of organizational justice is the view that justice
is multidimensional.
The key addition under organizational justice was Procedural Justice
It is the perceived fairness of the process used to determine the
distribution of rewards.
Two key elements of procedural justice are:
1.Process control: opportunity to present ones point of view about desired
outcomes to decision makers
2.Explanation: clear reasons given to a person by management for the
outcome.
Recent addition to Organizational Justice is Interactional Justice, which is
the individuals perception of the degree to which he or she is treated with
dignity, concern and respect.

Distributive justice is most strongly related to satisfaction with outcomes and

organizational commitment.

Procedural Justice relates more strongly to job satisfaction, employee trust,

withdrawal from the organization, job performance and citizenship behaviour.

Implications for managers

People measure the total of their inputs and outcomes.

Different employees ascribe personal values to inputs and outcomes.

Employees are able to adjust for purchasing power and local market
conditions.
Although it may be acceptable for more senior staff to receive higher
compensation, there are limits to the balance of the scales of equity and
employees can find excessive executive pay demotivating.
Staff perceptions of inputs and outcomes of themselves and others may be
incorrect, and perceptions need to be managed effectively.
An employee who believes he is under-compensated may withdraw good will
and reduce effort.
An employee who believes he is over-compensated may increase his effort.

Expectancy Theory

Victor Vrooms theory also known as the "ValenceInstrumentality- Expectancy Theory" developed in
1964 has its critics but most of the research is
supportive.

Expectancy theory argues that the strength of a

tendency to act in a certain way depends on the
strength of an expectation that the act will be
followed by a given outcome and on the
attractiveness of that outcome to the individual.

It says that an employee will be motivated to exert a

high level of effort when he/she believes that:
Effort will lead to a good performance appraisal.
That a good appraisal will lead to organizational rewards.
That the rewards will satisfy his/her personal goals

Three Key Relationships

Expectancy
of
performance
success

Instrumentalit
y of success in
getting
reward

Valuation of
the reward in
employees
eyes

1.

2.

3.

Effort-performance relationship
The probability perceived by the individual that exerting a given amount
of effort would lead to performance. The belief that effort will lead to high
performance, must be greater than zero
Performance-reward relationship
The degree to which the individual believes that performing at a
particular level will lead to the attainment of a desired outcome.
Performance will result in certain outcomes, must be greater than zero.
Rewards-personal goals relationship
The degree to which organizational rewards satisfy an individuals
personal goals or needs and the attractiveness of those potential rewards
for the individual. The sum of the valences must be greater than zero

Expectancy theory helps explain why a lot of workers

merely do the minimum necessary to get by. For
example:
If I give a maximum effort, will it be recognized in my
performance appraisal? (Expectancy)
If I get a good performance appraisal, will it lead to
organizational rewards? (Instrumentality)
If I am rewarded, are the rewards ones that I find
personally attractive? (Valence)

The Porter-Lawler Model

Since its original conception, the expectancy

theory model has been refined and extended many
times.

Although conventional wisdom argues that

satisfaction leads to performance, Porter and
Lawler argued the reverse: If rewards are adequate,
high levels of performance may lead to satisfaction.

In addition to the features included in the original

expectancy model, the Porter-Lawler model
includes abilities, traits, and role perceptions.

Variables of the model are

1. The value of reward
2. Efforts
3. Abilities and traits
4. Role perception
5. Performance
6. Rewards
7. Perceived equitable rewards
8. Satisfaction

He has postulated relationship among these

variables to explain work satisfaction and have
proposed a feedback loop from work satisfaction
to value of the rewards

According to Porter and Lawler, organizations should go

beyond traditional satisfaction and should measure the
values of possible rewards and consequences,
perceptions of the probability that positively valued
rewards can be obtained by high levels of effort, and
role participations.

Lawler has proposed another model where he has

studies in detail the quesiton of pay.

Motivation to perform at a given level is primarily

determined by two variables: the subjective probability
that effort will lead to performance, and a combination
of beliefs about what the outcomes of accomplishing
the intended level of performance will be and the
valence of these outcomes.
656

The Porter-Lawler Model

Porter-Lawler Extension of Expectancy

Theory
Assumptions:

If performance in an organization results in equitable

and fair rewards, people will be more satisfied.
High performance can lead to rewards and high
satisfaction.

Types of rewards:

Extrinsic rewardsoutcomes set and awarded by

external parties (e.g., pay and promotions).
Intrinsic rewardsoutcomes that are internal to the
individual (e.g., self-esteem and feelings of
accomplishment).

Research studies have confirmed:

The association of both kinds of expectancies and
valences with effort and performance.
That motivated behavior by people arises from
their valuing expected rewards, believing effort
will lead to performance, and that performance
will result in desired rewards.
That expectancy theory explains motivation in the
U.S. better than elsewhere.

Goal-Setting Theory (Edwin

Locke)
In the late 1960, Edwin Locke proposed his
intentions "to work towards a goal" are a major
source of work motivation. Goals tell an
employee what needs to be done and how
much efforts will need to be expended.
Specific goals increase performance. While
difficult goals, when accepted it results in
higher performance than the easy goals. Also
when feedback is given will lead to higher
performance.

The evidence is mixed regarding the

superiority of Participative over Assigned
Goals.
A major advantage of participation may be in increasing
acceptance of the goal itself as a desirable one toward
which to work.
If people participate in goal setting, they are more likely
to accept even a difficult goal than if they are arbitrarily
assigned it by their boss. Individuals are more committed
to choices in which they have a part.

Factors influencing the Goals

Performance Relationship
1.

Goal commitment: An individual is committed to the

goal and will not lower or abandon the goal.

2.

Self-efficacy: It refers to an individuals belief that he

or she is capable of performing a task. The higher your
self-efcacy, the more confidence you have in your
ability to succeed in a task. They respond to negative
feedback with increased effort and motivation.

3.

Task characteristics: Individual goal setting does not

work equally well on all tasks. Goals seem to have a
more extensive effect on performance when tasks are
simple, well-learned, and independent.

4.

National culture: Goal-setting theory is culture bound

and it is well adapted to North American cultures.

Management by
Objectives
A program that encompasses specific goals, participatively
set, for an explicit time period, with feedback on goal
progress.

Key
KeyElements
Elements
1.1. Goal
Goalspecificity
specificity
2.2. Participative
Participativedecision
decisionmaking
making
3.3. An
Anexplicit
explicittime
timeperiod
period
4.4. Performance
Performancefeedback
feedback

Cascading
Cascading of
of Objectives
Objectives

Linking MBO and GoalSetting Theory

MBO

Goal-Setting Theory

Goal Specificity

Yes

Yes

Goal Difficulty

Yes

Yes

Feedback

Yes

Yes

Participation

Yes

No
(not proved)

Why
Why MBOs
MBOs Fail
Fail
Unrealistic expectations about MBO
results
Lack of commitment by top management
Failure to allocate reward properly
Cultural incompatibilities

Self Study
1. Cognitive Evaluation Theory (from
Stephen Robbins)
2. Reinforcement Theory (from
Stephen Robbins)
3. Self Efficacy (from Stephen
Robbins)