Chapter- 7

Motivation Concepts:
Early Theories of Motivation

Motivation: What is it?

Motivation- result of the interaction between the individual
and the situation/ environment.
Motivation: The processes that account for an individuals
intensity, direction, and persistence of effort toward attaining
a goal*/ meeting physical or psychological needs or wants.
* general goal/ an organizational goal- specifically in
organizational context.

Three key elements:

Intensity how hard a person tries (quantitative aspect)

Direction effort that is channeled toward, and
consistent with, organizational goals (qualitative aspect)
Persistence how long a person can maintain effort

Early Theories of Motivation

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

Maslows Hierarchy of Needs Theory

Alderfers ERG (Existence, Relatedness, and Growth)

McGregors Theory X and Theory Y

Herzbergs Two-Factor Theory

McClellands Theory of Needs

Hierarchy of Needs Theory

by Abraham Maslow
There is a hierarchy of five needs.
As each need is substantially satisfied, the next
need becomes dominant.
Assumptions
Higher Order
Needs:
Internal

Lower Order
Needs:
External

Individuals cannot
move to the next
higher level until all
needs at the current
(lower) level are
satisfied
Must move in
hierarchical order

Alderfers ERG Theory

Reworking on Maslows need hierarchy to align it more
closely with empirical research.

Three groups of core needs:

Removed the hierarchical assumption

Existence (similar to Maslows physiological and safety needs)

Relatedness (similar to Maslows social needs), and
Growth (similar to Maslows esteem and self-actualization
needs)
An individual could focus on all the three
needs simultaneously

Popular, but not accurate, theory

McGregors Theory X and Theory Y

Two distinct views of human beings:

Theory X (basically negative) and Theory Y (positive).
Managers used a set of assumptions based on these
views
The assumptions mold their behaviour toward
employees

No empirical evidence to support this theory.

Herzbergs Two-Factor Theory /

Motivation- Hygiene Theory
Herzbergs Basic Quest- What do people want
from their jobs?, What motivates employeejob contents or working conditions?

Extrinsic
Factors: Related
to Dissatisfaction

Intrinsic
Factors:
Related to
Satisfaction

Two-Factor Theory (contd. ..)

Contrasting views of
Key Point: Satisfaction
and dissatisfaction are Satisfaction & Dissatisfaction
Traditional view
not opposites but
separate constructs.
In fact, they exist as a Satisfaction
Dissatisfaction
dual continuum.
Herzbergs View
MOTIVATORS

Satisfaction

No Satisfaction

Factors that lead to job

satisfaction- distinct &
HYGIENE FACTORS
separate from factors
that lead to job
No Dissatisfaction
Dissatisfaction
dissatisfaction.

Criticisms of Two-Factor Theory

Herzberg says that hygiene factors must be met to remove
dissatisfaction. If motivators are given, then satisfaction
can occur.
Herzbergs respondents comprised of architects and
engineers. So, it is limited by his procedure

Participants had self- serving bias

How could we generalize it?

Participants attributed ve feelings in job (dissatisfaction) to external
factors and happiness/ +ve feelings to internal factors

Later researchers found that a specific variable (like pay) can

be a source of either satisfaction or dissatisfaction, depending
on the person.
Impact of external factors (such as health and family
tensions) on work behaviour- highly ignored.
No overall measure of satisfaction was used
Herzberg assumed, but didnt research, a strong relationship
between satisfaction and productivity

McClellands Theory of Needs

Managers can motivate others if they are sensitive to
the motives (learned/ acquired) of individual
employees:

Need for Achievement (nAch)

Need for Power (nPow)
Need for Affiliation (nAff)
People have varying levels of each of the three
needs.

Hard to measure

TAT

Performance Predictions for

High nAch

People with a high need for achievement are likely

to:

Prefer to undertake activities with a 50/50 chance of

success, avoiding very low- or high-risk situations
Be motivated in jobs that offer high degree of personal
responsibility, feedback, and moderate risk
Not necessarily make good managers too personal a
focus. Most good general managers do NOT have a high
nAch
Need high level of nPow and low nAff for managerial
success

Good research support, but it is not a very practical

theory

Contemporary Theories of
Motivation
Goal-Setting

Management by Objectives (MBO)

Self-Efficacy

Theory
Theory

Also known as Social Cognitive Theory or Social

Learning Theory

Reinforcement

Theory
Cognitive Evaluation Theory
Equity Theory
Expectancy Theory

Lockes Goal-Setting Theory

Basic Premise:

Specific and difficult goals, with feedback, lead to higher

performance

GOALS
Two primary attributes of goals in goal- setting perspective:
1.
Content of the Goal
2.
Level of Intensity in working towards it

Difficult Goals:
Focus and direct attention
Energize the person to work harder
Difficulty increases persistence
Force people to be more effective and efficient

Why are goals important?

Goals

guide and direct behaviour

Goals

serve as an organizing function

Goals

provide benchmarks

Goals:

Basis for Organizational Design

Goal- Setting Theory

Traditional Goal Setting

Traditional Goal Setting
Broad goals set by top
managers flow down
through the
organization and
become sub-goals for
each organizational
area.
Assumes that top
management knows
best because they can
see the big picture.

Exhibit 7.2: The Downside of Traditional Goal Setting

Setting Goals and Developing Plans

Getting the Best from Traditional Goal Setting: HOW??
Maintaining the Hierarchy of Goals

MeansEnds Chain
The

integrated network of goals that results from

establishing a clearly-defined hierarchy of

organizational goals.
Achievement

of lower-level goals is the means by

which to reach higher-level goals (ends).

Setting Goals and Developing Plans

Management By Objectives (MBO)

Specific performance goals are jointly determined by
employees and managers.
Progress toward accomplishing goals is periodically
reviewed.
Rewards are allocated on the basis of progress towards
the goals.
Key elements of MBO:
Goal

specificity, participative decision making,

an explicit time period, performance feedback

REWARDING
EMPLOYEE &
FEEDBACK

MONITORING &
EVALUATING
PERFORMANCE

SETTING
ORGANIZATIONS
OVERALL OBJECTIVES &
STRATEGIES

MBO
(Steps)
SETTING & ALIGNING
EMPLOYEE OBJECTIVES

ACTION PLAN:
Design &
Implementation

Implementation: Management
by Objectives

MBO is a systematic way to utilize goal-setting.

Goals must be:
Tangible
Verifiable
Measurable
Corporate goals are broken down into smaller, more specific
goals at each level of organization.
Four common ingredients to MBO programs:
Goal specificity
Participative decision making
Explicit time period
Performance feedback

Reinforcement/ Reward Theory

Goal-Setting process requires cognitive involvement.
Reward System- a less- cognitive approach to
motivate, modify or reshape behaviours.

Behavior is environmentally caused i.e. behaviour is a

function of its consequences.
Thought (internal cognitive event) is not important
Feelings, attitudes, expectations and other cognitive
variables are ignored
Behavior is controlled by its consequences reinforcers
Is not a motivational theory but a means of analysis of
behavior
Reinforcement strongly influences behavior but is not likely
to be the sole cause

Is reward effective in
motivation?
The ability of the reward to motivate individuals
or a team to high performance depends on:
Availability
Timeliness
Performance Contingency
Durability
Equity
Visibility

Reinforcement
Types

of Reinforcement
Schedules of Reinforcement
Applications

Cognitive Evaluation Theory

Part- I
Assumptions & Findings:
Intrinsic rewards are not independent of
extrinsic rewards such as high pay, bonus
etc.
i.e.
When extrinsic rewards are used by organizations
as payoffs for superior performance, the intrinsic
rewards, which are derived from individuals
doing what they like, are reduced. OR
When extrinsic rewards are given to someone for
performing an interesting task, it causes intrinsic
interest in the task itself to decline.

Cognitive Evaluation Theory- Summary

Providing an extrinsic reward for behavior that had been
previously only intrinsically rewarding tends to decrease the
overall level of motivation

Major Implications for work rewards

Intrinsic and extrinsic rewards are not independent

Extrinsic rewards decrease intrinsic rewards

Pay should be noncontingent on performance

Verbal rewards increase intrinsic motivation; tangible rewards

reduce it

Self-concordance

When the personal reasons for pursuing goals are consistent

with personal interests and core values (intrinsic motivation),
people are happier and more successful

Banduras Self-Efficacy Theory

An

individuals belief that he or she is capable

of performing a task.

Higher efficacy is related to:

Greater confidence
Greater persistence in the face of difficulties
Better response to negative feedback (work harder)

How can managers achieve high levels of selfefficacy?

Self-Efficacy complements Goal-Setting Theory.

Increasing Self-Efficacy

Enactive mastery
Most important source of efficacy
Gaining relevant experience with task or job
Practice makes perfect
Vicarious modeling
Increasing confidence by watching others perform the task
Most effective when observer sees the model to be similar
to him- or herself
Verbal persuasion
Motivation through verbal conviction
Pygmalion and Galatea effects - self-fulfilling prophecies
Arousal
Getting psyched up emotionally aroused to complete
task
Can hurt performance if emotion is not a component of
the task

Adams Equity Theory: Role of Equity in Motivation

Employees make comparisons of their job inputs

(i.e. effort, experience, education, competence)
and outcomes (i.e. salary levels, raises,
recognition) relative to others.
Ratio Comparisons
Perception
O
O
Inequity
IA
IB
(Inderrewarded)
O O
Equity
IA
IB
O
O
Inequity
IA
IB
(Overrewarded)
A- Employee; B- Relevant others

Ind. differences
Information about referents
& its attractiveness

Adams Equity Theory (Contd. )

Inequity tension motivates people to act to bring their
situation into equity.
The referent that an employee selects- adds to the
complexity of equity theory.
4 Referent Comparisons, that an employee uses:
1. Self-Inside
The persons experience in a different job in the same
organization
2. Self-Outside
The persons experience in a different job in a different
organization
3. Other-Inside
Another individual or group within the organization
4. Other-Outside
Another individual or group outside of the organization

Reactions to Inequity
Factors

effecting referent comparison

Employee behaviors to create equity:

Change inputs (slack off/ exerting less effort)

Change outcomes (increase output or piece- rate)
Distort/change perceptions of self
Distort/change perceptions of others
Choose a different referent person
Leave the field (quit the job)

Justice and Equity Theory

Overall perception
of what is fair in the
workplace.

The strength
of a tendency toTheory
act in a certain
Vrooms
Expectancy
way (or MOTIVATION) depends on the
strength of an expectation that the act will
be followed by a given outcome and on the
attractiveness of the outcome to the
individual.
Expectation/ Belief
- Effort will lead to a good
performance appraisal
-A good appraisal will lead
to organizational rewards
(bonuses, promotions, salary
hike etc. )
-Employees personal goals
will be satisfied/ met by
these rewards

MOTIVATION

Vrooms Expectancy Theory

E
P
Expectancy

P
R
Expectancy

R
PG
Expectancy

Integrating Contemporary
Motivation
Theories
Based on Expectancy Theory