Chapter 7 Motivation: Need Theories

Learning Goals
Discuss the role of needs in behavior in organizations Describe the major need hierarchy theories of motivation Appreciate that the importance of particular needs varies from person to person

Learning Goals (Cont.)

Understand how some needs may be learned Distinguish between motivator and hygiene factors in a person's environment Discuss the international and ethical issues in motivation

Chapter Overview
Introduction Overview of Where We are Headed Murray's Theory of Human Personality: The Concept of Needs Maslow's Hierarchy of Needs Theory E.R.G. Theory

Chapter Overview (Cont.)

McClelland's Achievement Motivation Theory Herzberg's Motivator-Hygiene Theory International Aspects of the Need theories of Motivation Ethical Issues and the Need Theories of Motivation

Introduction
Assumptions of motivation Theories
Behavior has a starting point, a direction, and a stopping point Focus is on voluntary behavior under the control of the person Behavior is not random. It has purpose and direction

Introduction (Cont.)
Motivation defined

Motivation is a psychological process that causes the arousal, direction, and persistence of voluntary actions that are goal directed.

Introduction (Cont.)
Motivation is the psychological process
that leads to that results in

Choice of behavior

Some level of job performance

The Motivation-Behavior-Job Performance Sequence

Introduction (Cont.)
Why know about motivation?
Help you understand your behavior and the behavior of others Can help a manager build and manage a system of motivation. Offers conceptual tools for analyzing motivation problems in organizations

Overview of Where We are Headed

Need theories (Chapter 7)
Murrays Theory of Human Personality Maslows Hierarchy of Needs Theory E.R.G. Theory McClellands Achievement Motivation Theory Herzbergs Motivator-Hygiene Theory

Overview of Where We are Headed (Cont.)

Cognitive and behavioral theories (Chapter 8)
Expectancy Theory Equity Theory Goal Setting Theory Behavior Modification

Murrays Theory of Human Personality

Assumptions
People can adapt to their changing environment Human behavior is goal directed Internal and external factors affect behavior People learn from interactions with their environment Preconception of future affect behavior now

Murrays Theory of Human Personality (Cont.)

Needs
Basic to Murray's theory Hypothetical concept: helps explain observable differences in behavior Invisible link between a stimulus and a persons reaction to the stimulus

Murrays Theory of Human Personality (Cont.)

Types of needs
Physical needs
Satisfaction of basic physical processes Need for food, air, water, sex

Psychological needs
Focus on emotional and mental satisfaction Example: the need for social interaction or to achieve difficult goals

Murrays Theory of Human Personality (Cont.)

Some needs in Murray's theory
n Order: organize and systematically arrange objects; be clean, neat, and tidy n Achievement: attain difficult goals; perform as well as possible n Recognition: receive credit for actions; to seek honors and recognition
The small n in front of the name of each need is the psychologists abbreviation for the word need. See text book Table 7.1

Murrays Theory of Human Personality (Cont.)

Some needs in Murray's theory (cont.)
n Dominance: influence others; affect the direction of a group n Deference: respect authority; admire a person with authority n Autonomy: be independent and not be influenced by others n Affiliation: associate with others, have friends, and join groups

Murrays Theory of Human Personality (Cont.)

Characteristics of needs
Latent internal characteristics activated by a stimulus A person tries to behave in a way that satisfies an activated need
Strong need for affiliation: Meet someone you like and start talking to the person

Murrays Theory of Human Personality (Cont.)

Characteristics of needs (cont.)
Needs may show rhythmic patterns over time
Manager could satisfy a Need for Dominance in relationships with subordinates Same manager is subordinate to someone else in the organization Engages in behavior directed at the Need for Deference

Murrays Theory of Human Personality (Cont.)

Characteristics of needs (Cont.)
Opposite needs and behavior
Need for Dominance in work role, especially a manager or supervisor Need for Deference in nonwork (family) role Work Need for Dominance Nonwork Need for Deference

Murrays Theory of Human Personality (Cont.)

Characteristics of needs (Cont.)
Multiple needs and behavior
One need is primary; other need serves the primary Need for Achievement and Need for Affiliation Example: joining student organizations. Such activities are important for finding a good job Need for Affiliation serves Need for Achievement

Murrays Theory of Human Personality (Cont.)

Implications
Understand own and others behavior Needs vary in importance among people Directs peoples behavior toward or away from objects Such knowledge can help managers shape a motivation system Help us understand behavior we see

Maslows Hierarchy of Needs Theory

Five groups of basic needs Healthy adults try to satisfy these needs So basic that they motivate behavior in many cultures Chronic frustration of needs can lead to psychopathological results

Maslows Hierarchy of Needs Theory (Cont.)

Physiological needs: basic requirements of the human body; food, water, sleep, sex Safety needs: desires of a person to be protected from physical and economic harm Belongingness and love needs (social): desire to give and receive affection; be in the company of others

Maslows Hierarchy of Needs Theory (Cont.)

Esteem needs: self-confidence and sense of self-worth
Esteem from others: valuation of self from other people Self-esteem: feeling of self-confidence and self-respect

Self-actualization needs: desire for selffulfillment

Maslow: . . . the desire to become more and more what one is, to become everything that one is capable of becoming.

Maslows Hierarchy of Needs Theory (Cont.)

Form a need hierarchy based on the prepotency of needs Prepotency: need emerges as a motivator after satisfying a lower-order (more prepotent) need Hierarchy progression: physiological, safety, belongingness, esteem, selfactualization

Maslows Hierarchy of Needs

Esteem

Selfactualization

Belongingness and love

Safety See text book Figure 7.1

Physiological

Maslows Hierarchy of Needs Theory (Cont.)

Need hierarchy
Unsatisfied need is a potential motivator of behavior Satisfied need is no longer a motivator Focus on more than one need: promotion leads to more money (esteem and physiological) Need satisfaction follows the order shown but is flexible Weak empirical support Remains a classic interpretation of behavior

E.R.G. Theory
A variation of Maslow's hierarchy of needs Three groups of needs Existence needs: physical and material wants Relatedness needs: desires for interpersonal relationships Growth needs: desires to be creative and productive; to use ones skills

E.R.G. Theory (Cont.)

Maslow hierarchy Selfactualization E.R.G. Theory Relationship of Maslows hierarchy to E.R.G. Theory.

Growth needs
Esteem Belongingness and love

Relatedness needs

Safety

Existence needs
Physiological

E.R.G. Theory (Cont.)

Both similar to and different from Maslow's need hierarchy Satisfied and unsatisfied needs operate in much the same way Movement upward is the same Movement downward is new
See text book Figure 7.2

E.R.G. Theory (Cont.)

Satisfaction-progression: move up the hierarchy as needs are satisfied Frustration-regression: move down the hierarchy when a need is frustrated Deficiency cycle: more strongly desire existence needs when they are unsatisfied Enrichment cycle: more strongly desire growth needs when they are satisfied

McClellands Achievement Motivation Theory

McClelland and colleagues studied the behavioral effects of three needs
Need for Achievement Need for Power Need for Affiliation

Emphasized the Need for Achievement, although they investigated all three needs

McClellands Achievement Motivation Theory (Cont.)

Strong need for achievement people
Take responsibility for results of behavior Willing to take calculated risks Set moderate achievement goals Prefer to set performance standards for themselves Prefer nonroutine tasks to routine assignments Welcome feedback about how well they are doing

McClellands Achievement Motivation Theory (Cont.)

Strong Need for Power people
Focuses on "controlling the means of influencing the behavior of another person Having strong effects on other people Means of influence: anything available to the person to control the behavior of another Actively searches for means of influence
Example: use superior-subordinate relationship or external rewards to control the behavior of another

McClellands Achievement Motivation Theory (Cont.)

Two ways of expressing the Need for Power
Dominance, physical aggression, exploitation
View situations from a win-lose perspective Must win and the other party must lose

Did not feel such power behavior resulted in the type of leadership required by organizations

McClellands Achievement Motivation Theory (Cont.)

Two ways of expressing the Need for Power (cont.)
Persuasion and interpersonal influence
Tries to arouse confidence in those he or she wants to influence Clarifies groups goals and persuades members to achieve those goals Emphasizes group members ability to reach goals

McClellands Achievement Motivation Theory (Cont.)

Two ways of expressing the Need for Power (cont.)
Tries to develop a competence belief in group members McClelland felt this type of power behavior characterized effective leaders in organizations

McClellands Achievement Motivation Theory (Cont.)

Strong Need for Affiliation people
Focuses on "establishing, maintaining, and restoring positive affective relations with others" Want close, warm interpersonal relationships Seek the approval of others, especially those about whom they care Like other people, want other people to like them, and want to be in the company of others

McClellands Achievement Motivation Theory (Cont.)

Need for achievement and behavior
Money: important to both high and low achievers, but for different reasons
High achiever wants concrete feedback about performance Making a profit, or receiving a bonus, is a statement about success or failure Symbol of success and feedback about job performance

McClellands Achievement Motivation Theory (Cont.)

Need for achievement and behavior (cont.)
High achiever wants a challenging job and responsibility for work Want to feel successful at doing something over which they have control

McClellands Achievement Motivation Theory (Cont.)

Need for achievement and behavior (cont.)
Low achiever views monetary reward as an end in itself Get increased performance from low Need for Achievement person by rewarding with money

McClellands Achievement Motivation Theory (Cont.)

Managers and executives usually have a stronger Need for Achievement than people in other occupations Evidence points to strong Need for Achievement as an entrepreneur characteristic Nature of Need for Achievement behavior fits well with such role demands

McClellands Achievement Motivation Theory (Cont.)

Need for Achievement and Need for Power: some relationships
Strong Need for Achievement person
Task centered Future oriented Performs to internal standard of excellence

McClellands Achievement Motivation Theory (Cont.)

Need for Achievement and Need for Power: some relationships (cont.)
Strong Need for Power person
Draws attention Risk taking Present oriented Assesses situations for change potential

McClellands Achievement Motivation Theory (Cont.)

Need for Achievement and Need for Power: some relationships (cont.)
Both types of people important for successful organizations Strong Need for Achievement managers keep an organization going Strong Need for Power people bring dramatic change and innovation

Herzbergs Motivator-Hygiene Theory

Early interview research with engineers and accountants
Negative events: mostly involved a person's job context such as company policy and supervision Positive events: described aspects of the job and feelings of achievement Salary mentioned about the same number of times in negative and positive reports

Herzbergs Motivator-Hygiene Theory (Cont.)

Dissatisfiers: items predominantly found in descriptions of negative events
Could lead to high levels of employee dissatisfaction Improve the dissatisfiers and reduce dissatisfaction Not get higher satisfaction

 Satisfiers: items predominantly found in descriptions of positive events

Could lead to high levels of employee satisfaction Their absence, or a person's failure to experience them, would not produce dissatisfaction

Herzbergs Motivator-Hygiene Theory (Cont.)

 Two distinct continua: one for satisfaction and one for dissatisfaction Not a single continuum with dissatisfaction on one end and satisfaction on the other Herzberg eventually called the satisfiers motivators; the dissatisfiers hygiene factors

Herzbergs Motivator-Hygiene Theory (Cont.)

 Motivators

Herzbergs Motivator-Hygiene Theory (Cont.)

Achievement Recognition Work itself

Hygiene factors
Company policies and their administration Quality of supervision Working conditions

Herzbergs Motivator-Hygiene Theory (Cont.)

Dissatisfiers distracted from the motivators Once the work context is improved, the manager can try to provide the motivators Use a process called job enrichment Add more responsibility and autonomy to the job Creates opportunity for employee to experience the motivators

 Empirical research

Herzbergs Motivator-Hygiene Theory (Cont.)

Mixed results Methodological issues See the text book for details

International Aspects of the Need Theories of Motivation

Concept of needs holds across cultures People from different cultures may express and satisfy needs differently Importance of needs in Maslow's need hierarchy
United States: self-actualization Latin America: security, affiliation France and Germany: need for security New Zealand: belongingness and love

International Aspects of the Need Theories of Motivation (Cont.)

See textbook for results of some large crosscountry studies of McClelland's Achievement Motivation Theory Use caution when applying need theories of motivation in different countries Strong evidence they are culture bound

Ethical Issues and the Need Theories of Motivation

Ethics of directly affecting employee behavior without informed consent Consider the ethics of actions from the different ethical views in Chapter 3

Ethical Issues and the Need Theories of Motivation (Cont.)

Utilitarian analysis
Total effects of the manager's efforts Do they produce a widespread net positive benefit for the organization?

Rights and justice analysis: Employees' rights to know their managers intent

Ethical Issues and the Need Theories of Motivation (Cont.)

Ethical egoism
It is right for a manager to affect behavior because it meets the manager's interests Interests include units work performance and the manager's career

Ethical Issues and the Need Theories of Motivation (Cont.)

Ethically required to create need satisfying work experiences? Existing research does not always show higher performance and satisfaction from work designs aligned with people's needs Ethical answer rests on the philosophy of each organization and its managers

Ethical Issues and the Need Theories of Motivation (Cont.)

Should managers consider cultural differences in peoples needs?
Manage according to the needs of people in the host culture, or Manage as if they were in their home culture?

Ethical Issues and the Need Theories of Motivation (Cont.)

Utilitarian and rights-based analyses answer "yes" to the first question and "no" to the second
Utilitarian view: managing a multinational operation so it aligns with local people's needs Rights view: people have the right of congruence with their needs in their work experiences

Process theories
Process theories, do not concern the needs which must be satisfied in order to achieve motivation, but instead they are concerned with the thought-processes that influence workers' behaviour. There are two such theories Expectancy Theory Equity Theory

Expantancy theory
Expectancy theory: This states that workers will BEHAVE IN WAYS that they believe will lead to outcome they value. If they believe that they possess the ability and skill to achieve the goal, then their level of effort will be great and they will be motivated

 Workers can be motivated if : There is a positive link between efforts and performance Favourable performance will result in desirable results. The reward will satisfy an important need. The desire to satisfy the need is so strong that motivates to work.

Equity theory
This states that each worker will wish to receive a remuneration package (equal to their pay plus fringe benefits) in return for their efforts. Each worker will only be motivated if their remuneration package is seen to be fair (or equitable) in relation to the remuneration packages received by the other workers for their efforts.

 Financial Methods There are many different methods of payment that a business can choose from, each of which can have different effects on the level of motivation of the workforce. The main methods are:

Time-rate ('flat rate') schemes.

This payment method involves the employee receiving a basic rate of pay per time period that he works (e.g. 5 per hour, 50 per day, 400 per week). The pay is not related to output or productivity. Any time that the employee works above the agreed number of hours per week may make him eligible for overtime payments, often at 'time and a half' (e.g. 7.50 per hour instead of 5 per hour).

Piece-rate schemes.
This payment method involves the employee receiving an amount of money per unit (or per 'piece') that he produces. Therefore his pay is directly linked to his productivity level. However, it is possible that in order to boost his earnings, an employee may reduce the quality and craftsmanship per unit, so that he can produce more output in a given period of time.

Commission.
This is a common method of payment for salesmen (e.g. insurance, double-glazing, telesales). The employee receives a very small percentage (say 0.5%) of the value of the goods that he manages to sell in a period of time.

Performance-related pay (PRP).

This is a method of giving pay rises on an individual basis, related to the employee achieving a number of targets over the past year. This is common with managerial and professional workers.

Profit sharing.
This involves each employee receiving a share of the profit of the business each year, effectively representing an annual pay rise. It aims to increase the levels of effort, motivation and productivity of each employee, since their annual pay-award will be related to the profitability of the business.

 However, if the business makes low profits (or even a loss) then this is likely to have a harmful effect on the level of motivation of the employees.

Share ownership.
A common form of payment in many PLCs is what is termed 'share options'. This basically involves each employee receiving a part of each month's salary in the form of shares (usually at a discounted price).

 This forms a profitable savings-plan for the employee, and he can sell them after a given period of time. This should motivate the employees to work harder and increase their efforts, since the share price will rise as the company becomes more profitable, therefore increasing the capital gain on their shares.

Fringe Benefits
Many of these different methods of pay are likely to be supplemented by fringe benefits (or 'perks') such as private health schemes, pension schemes, subsidised meals, discounts on holidays and travel, cheap mortgages and loans, company cars and discounts when buying the company's products. The total package of pay plus fringe benefits is known as the remuneration package.

Non-Financial Methods
There is no universal rule for motivating employees, and there are many methods which are used by different managers to achieve the goal of a motivated and satisfied workforce.

Delegation.
This occurs when managers pass a degree of authority down the hierarchy to their subordinates.

Empowerment.
This involves a manager giving his subordinates a degree of power over their work (i.e. it enables the subordinates to be fairly autonomous and to decide for themselves the best way to approach a problem).

Job enlargement.
This involves increasing the number of tasks which are involved in performing a particular job, in order to motivate and multi-skill the employees.

Job enrichment.
This is a method of motivating employees by giving them more responsibilities and the opportunity to use their initiative.

Job rotation.
This involves the employees performing a number of different tasks in turn, in order to increase the variety of their job and, therefore, lead to higher levels of motivation.

Quality circles
. This is a group of workers that meets at regular intervals in order to identify any problems with quality within production, consider alternative solutions to these problems, and then recommend to management the solution that they believe will be the most successful.

Team working
Tea working production is organised so that Group of workers undertake complete units of work.

 This is the opposite production technique to an assembly-line which uses an extreme division of labour. Teamworking involves a number of employees combining to produce a product, with each employee specialising in a few tasks.

Worker participation.
This refers to the participation of workers in the decision-making process, asking them for their ideas and suggestions.

Target Setting
It is clearly connected to the technique of Mgt. by objectives, as well as making work more interesting and rewarding. The basic idea behind this is that people are more likely to do well when they are working towards goal.

Step to replace poor motivation

When a poor level of motivation exists in a workforce, then the management should: Develop a strong corporate culture and team-spirit. Ensure that pay levels are fair. Design more challenging jobs.

 Introduce decision-making at lower levels in the organisation. Give praise and recognition to employees for their efforts and achievements. Ensure that communication flows are effective and that the relevant messages get to the relevant personnel.

Evaluation of Equity theory

It is true that pay is not only the motivating factor for workers. Manager should be very critical while choosing financial or non financial method of motivating staff. The main factors that influence the different level of pay and non pay factors include : Leadership style and culture of the organisation.

Evaluation of Equity theory

If the managers have such attitude that workers are lazy and cannot trusted then Payment by result with close supervision will be adopted. If the culture is to vie workers as a partner or associate with the organisation then manger would provide more chance to workers to accept responsibility.