Motivation All Theory

What are we going to cover What is motivation Nature / characteristics of motivation Classification of motivation What are motives Classification of motives Theories of Work Motivation Maslow's theory of need hierarchy

What are we going to cover Theories of Work Motivation Herzberg's two-factor theory Mc Gregor’s theory Vroom’s Expectancy theory Porter Lawler model Morale - Definition Relationship with productivity Morale Indicators

What is motivation? Motivation is a Latin word, which means to move. It is the willingness of an individual to respond to organisational requirements. Koontz O’Donnell defines it as “ a general term applying to the entire class of drives, desires, needs wishes & similar forces that induce an individual or a group of people at work.”

What is motivation? It can also be defined as “a willingness to expend energy to achieve a goal or a reward. It is a force that activates dormant energies & sets in motion the action of people. It is the function that kindles a burning passion for action among the human beings of an organisation.” Performance = Ability x Motivation

What is motivation? It is a process which starts with a physiological or psychological deficiency or need that activates or a drive that is aimed at a goal or incentive. Needs: are created when there is a deprivation or deficiency. Here, a physiological or psychological imbalance exists. Drives or motives: Drives are deficiencies with direction. They are action oriented & provide a thrust towards achieving an incentive or goal.

What is motivation? Incentive orgoal: Attaining an incentive will restore the balance. After achieving the goal, needs & drives will be reduced. Needs Drives Incentive or motives or Goal

Nature / characteristics of motivation Unending process: human wants keep changing & increasing. A psychological concept: deals with the human mind. Whole individual is motivated: as it is based on psychology of the individual.

Nature / characteristics of motivation Motivation may be financial or non-financial: Financial includes increasing wages, allowance, bonus, perquisites etc. Motivation can be positive or negative: positive motivation means use of incentives - financial or non-financial. Egs. of positive motivation: confirmation, pay rise, praise etc. Negative motivation means emphasizing penalties. It is based on force of fear. Eg. demotion, termination.

Nature / characteristics of motivation Motivation: motivation & job satisfaction are different. Motivation is goal-oriented behaviour. Job satisfaction is the outcome of job performance.

Classification of motivation Positive and negative Financial and non – financial Extrinsic and intrinsic: Extrinsic motivation is available only after completion of the job. Eg. increase in wages, rest periods, holidays etc. Intrinsic motivation is available at the time of performance of a job. Eg. praise, recognition, delegation of authority & responsibility.

What are motives? A motive is an inner state that energizes, activates, or moves & directs, channels behaviour towards goals.

Classification of motives Motives can be classified as: Primary motives General motives Secondary motives

Classification of motives Primary motives: Also called physiological / biological / unlearned motives. 2 criteria for the motive to be primary are that they should be unlearned & physiological. Eg. hunger, thirst, sleep, avoidance of pain, sex & material concern. Primary motives tend to reduce the tension or stimulation.

Classification of motives General motives: Are ones which are unlearned but are not physiologically based. These needs induce the person to increase the amount of stimulation. Eg. curiosity, manipulation, activity & affection

Classification of motives Secondary motives: These are the most important w.r.t. the study of O.B. A motive must be learned in order to be a secondary one. These drives are closely tied to the learning concepts, such as motives for power, achievement, affiliation referred to as n Pow, n Ach, n Aff. Security & status are also secondary motives.

Classification of motives Examples of key secondary needs: Need for Achievement: Doing better than competitors Attaining a difficult goal Solving a complex problem Need for power: Controlling people & activities Being in a position of authority over others Defeating an opponent

Classification of motives Need for affiliation: Being liked by many people Working with people who are friendly & co-operative Participating in pleasant social activities Need for security: Having a secure job Having protection against illness & disability Avoiding tasks or decision with a risk of failure & blame

Classification of motives Need for status: Working for the right company in the right job Having a degree from the right university Having the right privileges

Theories of Work Motivation Maslow's theory of need hierarchy: Abraham Maslow, an American psychologist, viewed the motivation of human beings as arising from levels of hierarchy of needs. According to him, each one of us is a ‘wanting’ being.

Theories of Work Motivation His basic assumptions were: All human needs cannot be satisfied, because, if one need is satisfied, another arises. A satisfied need does not motivate behaviour. eg. need for food motivates only till one gets food.

Theories of Work Motivation Some needs are innate (natural / inherent) eg. the need for food & water; while some are acquired from social experiences eg. need for social esteem. Human beings attempt to satisfy their needs in a specific order, based on hierarchy.

Theories of Work Motivation Maslow’s hierarchy of needs Self actualization needs Esteem needs Social needs Safety & security needs Physiological needs

Theories of Work Motivation Maslow explained each level of hierarchy as follows: Physiological needs: These are necessary to sustain life. They include food, water, clothing, shelter. These needs have the highest potency for motivation. A person who lacks these will be motivated by these.

Theories of Work Motivation Safety needs: When physiological needs are reasonably satisfied, safety needs begin to manifest themselves. These needs include protection from physical dangers, such as fire or accident. Economic security, security of income against contingencies such as sickness, injury, non-hostile working atmosphere are also safety needs.

Theories of Work Motivation Social needs: When physiological & safety needs are reasonably satisfied, social needs become important motivators. Man is a social being & wants to receive & give acceptance, friendship & affection. He feels the need for belonging, for being an accepted member of a formal or an informal group.

Theories of Work Motivation Esteem needs: When the first three needs are essentially satisfied, esteem needs become dominant. The person must feel important & must also receive recognition from others, as that recognition supports the feelings of personal worth. Thus feelings of self-esteem, self-confidence, prestige & power are produced which are related to enhancing competence, knowledge & achievement.

Theories of Work Motivation Self actualization needs: At the summit of the hierarchy is the need to realize one’s potentialities so as to satisfy what Maslow referred to as ‘the desire to become everything that one is capable of becoming.’ Thus the person becomes interested in self-fulfillment, self-development, & creativity in the broadest sense of the term.

Theories of Work Motivation Criticisms of Maslow’s theory: Hierarchy cannot be regarded as rigid. For some people, the levels may not be clearcut & may tend to overlap. Some individuals may lack ambition & may remain at the primary levels of the hierarchy concerned only with physiological & safety needs.

Theories of Work Motivation The order suggested by Maslow may not be applicable to everybody. A single need cannot motivate an individual. There may be several & that too in combinations, existing. Hence the theory may not have universal validity.

To be continued ….. Theories of Work Motivation Herzberg's two-factor theory Mc Gregor’s theory Vroom’s Expectancy theory Porter Lawler model Morale - Definition Relationship with productivity Morale Indicators

What are we going to cover Theories of Work Motivation – contd. Herzberg's two-factor theory Mc Gregor’s theory Vroom’s Expectancy theory Porter Lawler model – also imp, not written in syll. Morale - Definition Effects of Morale Relationship of morale with productivity Morale Indicators

Theories of Work Motivation Herzberg's two-factor theory: Frederick Herzberg, in the late 1950s conducted a study on motivation. He and his associates used semi-structured interviews to elicit from 200 engineers & accountants in Pittsburgh area, the factors which satisfy or dissatisfy the workers.

Theories of Work Motivation His study revealed that factors responsible for job satisfaction are quite different from those responsible for job dissatisfaction. Certain factors give job satisfaction, but absence of these does not mean job dissatisfaction. It only means no job satisfaction. Similarly, certain factors cause job dissatisfaction, but absence of these does not mean job satisfaction. It only means no job dissatisfaction.

Theories of Work Motivation According to Herzberg, motivational factors are responsible for job satisfaction; and Hygiene or Maintenance factors are responsible for job dissatisfaction.

Theories of Work Motivation Motivational factors: The presence of these factors motivates workers & at the same time, absence of these does not cause dissatisfaction.

Theories of Work Motivation Hygiene or Maintenance factors: The presence of these factors maintains motivation at zero level, but absence of these factors causes serious dissatisfaction. In other words, presence of these factors prevents dissatisfaction. Maintaining motivation at zero level thus prevents negative motivation, hence they are called maintenance factors.

Theories of Work Motivation Motivators Hygiene factors Achievement Co. policy & admn. Work itself Interpersonal relations Recognition Supervision Responsibility Money Advancement Job security Possibility of growth Status Working conditions

Theories of Work Motivation Herzberg’s framework is compatible with Maslow’s need hierarchy. Maslow’s lower order needs are analogous to Herzberg’s hygiene factors & his upper level needs correspond to Herzberg’s motivators. Herzberg’s theory was also challenged by the thought that there exists a tendency of people to attribute good results to their own effort & blame others for poor results.

Theories of Work Motivation Douglas Mc Gregor’s X & Y theory: Theory X : This theory assumes that most people prefer to be directed, are not interested in assuming responsibility & want safety above all. Accompanying this philosophy is the belief that work is inherently distasteful to most people & people are motivated by money & the threat of punishment.

Theories of Work Motivation Managers who accept Theory X assumptions, attempt to structure, control & closely supervise their subordinates. Theory Y: This theory assumes that people are not by nature lazy & unreliable. Man can be self-directed & creative at work, if properly motivated.

Theories of Work Motivation Managers who accept this theory, attempt to help their employees mature, by exposing them to progressively less control, allowing them to assume more self-control. Employees are able to achieve the satisfaction of social esteem & self-actualization needs with this kind of environment.

Theories of Work Motivation Vroom’s Expectancy theory: The model is built around the concepts of valence, instrumentality & expectancy & is commonly called VIE theory. By valence, Vroom means the strength of an individual’s preference for a particular outcome.

Theories of Work Motivation Valence is positive when a person prefers attaining the outcome to not attaining it. Valence is zero when the individual is indifferent towards the outcome. Valence is negative when a person prefers not attaining the outcome to attaining it.

Theories of Work Motivation Another major input into the valence is the instrumentality of the first level outcome in obtaining a desired second level outcome. Eg. person would be motivated towards superior performance because of the desire to be promoted. The superior performance (first level outcome) is seen as being instrumental in obtaining a promotion (second level outcome).

Theories of Work Motivation Another important variable is Expectancy. It relates efforts to first level outcomes; while instrumentality relates first level & second level outcomes. So, expectancy is the probability (ranging from 0 to 1) that a particular action or effort will lead to a particular first level outcome. Instrumentality refers to the degree to which a first level outcome will lead to a desired second level outcome.

Theories of Work Motivation Strength of motivation to perform a certain act will depend on the algebraic sum of the products of the valences of outcome (which include instrumentality) times the expectancies. Motivational force F: F = ∑ Valence x Expectancy

Theories of Work Motivation VIE theory Instrumentalities Expectancy Second level First level outcomes outcomes Outcome 1 a Outcome 1 Outcome 1 b Motivational Force F Outcome 2 a Outcome 2 Outcome 2 b Outcome 2 c

Theories of Work Motivation Eg. of VIE theory Instrumentalities Expectancy that the Second level workersFirst level outcomes will achieve outcomes the orgnal Personal goals goals Production i.e. money, standard recognition, Motivation i.e. the security Of organisational workers goal

Theories of Work Motivation This model can clarify the relationship between individual & organisational goals. Eg. suppose workers are given a certain standard of production. By measuring the worker’s output, mgt can determine how imp. their personal goals are, the instrumentality of the organisational goal in attaining their personal goals & the worker’s expectancies that their effort & ability will accomplish the organisational goals.

Theories of Work Motivation If the output is below standard, it may be that workers do not give high importance to the second level outcome; or they may not see the first level outcome being instrumental in achieving the second level outcome; or they may think that their efforts will not accomplish the first level outcome. Anyone or a combination of these possibilities will result in low motivation, according to Vroom.

What is Morale? The dictionary meaning is mood & spirit. High morale means an enthusiastic, confident feeling with respect to individual or group achievement. In employment, morale refers to the participative attitudes towards achievement of organisational objectives. It means team spirit & togetherness of people for a common purpose.

What is Morale? It is defined as the capacity of a group of people to pull together persistently (i.e. tirelessly, patiently) & consistently (again & again) in the pursuit of a common purpose.

What is Morale? It consists of 3 different aspects: Feeling of being accepted by one’s work group Sharing common goals with one’s group Having confidence in the desirability of these goals.

What is Morale? Individual & group morale: An individual’s morale is related with knowing one’s expectations & living up to them. It reflects the individual’s attitude towards life. Group morale reflects the group feeling – a group assessment of conditions – esprit de corps (team spirit)

Effects of Morale Relationship of morale with productivity: There are various schools of thought on this concept. Some believe that high morale is related to high productivity & vice-versa. Some believe that morale is not related to productivity.

Effects of Morale Miller & Form have given 4 combinations of morale & productivity: High productivity – high morale Low productivity – high morale High productivity – low morale Low productivity – low morale

Effects of Morale High productivity – high morale: this situation occurs when group goals (pride in work group, group recognition) & individual goals (freedom on work, good wages, job interest) are satisfied leading to high motivation, high productivity & high morale.

Effects of Morale Low productivity – high morale: individual goals only are satisfied. Individual behaviour is determined by informal groups causing restriction of output, where supervisors lack technical & administrative skills & where workers lack adequate skills.

Effects of Morale High productivity – low morale: in this situation, supervisor is only able to increase productivity through his skills or planning ability by use of penalty (loss of pay or loss of job) rather than motivating the workers. Low productivity – low morale: occurs when opposite factors to situation 1 arise.

Morale Indicators Organisation itself: goals, public reputation, organisational structure Nature of work: routine or specialised, stress Level of satisfaction: is determined by – opportunity for advancement, job security, opportunity to learn, use new ideas, co-operation of fellow employees, working hours, recognition, communication.

Morale Indicators Supervision received: high rate of turnover indicates a poor leadership. Perception of the self: Morale of employees who lack self-confidence or who suffer from a poor physical or mental health is generally low. Employee’s perception of past awards & future opportunities for rewards: whether fair, satisfactory

Morale Indicators Employee’s age: Earlier belief was that there exists a U shaped relation between age & morale – initially high, then low & again high. But, today it is believed that there is a direct relationship – high morale with high age, because of stability, serious attitude towards work, reliability, less absenteeism, sense of responsibility.

Morale Indicators Employee’s educational level & occupational level: Inverse relation exists between educational level & morale. Higher the education, less satisfaction – because employee compares his attainment with others. But a high educational level gives the opportunity to be high in the ladder, hence satisfaction must be derived by the individual.

Morale Indicators Occupational level: also influences morale. Eg. executives are more satisfied than managers, managers are more satisfied than the subordinates etc.

To sum up….. A manager’s success depends on how well he can motivate his subordinates & boost their morale to give their best & also keep them satisfied. Motivation is one of the key tools for the success of any enterprise.

McClelland Achievement Motivation Theory

What is Motivation? The word 'motivation' comes from the Latin word meaning 'to move‘ External motivation: bonus, work conditions (getting the office with the window) An inner (self-motivation) or outer drive to meet a need or goal

Why is Motivation Important? It is one of the three key elements in performance Performance = f {Ability x Motivation x Opportunity} Ability refers to a natural talent to do something mental or physical Motivation is not a stable individual characteristic. Motivation is not a trait. Opportunity refers to the different situations that workers may find themselves in.

McClelland's Achievement Motivation McClelland's Achievement Motivation Theory is based upon the idea that people have an achievement need. An achievement need is the need to be successful and to receive recognition for your success.

3 characteristics of people Need for Achievement - doing innovative, new, interesting and challenging things. Need for Affiliation - the need for feedback / contact with others. Need for Power - the need for responsibility, or to be responsible for others.

McClelland's experiment -- The Thematic Apperception Test (TAT) -- It consisted of showing individuals a series of pictures and asking them to give brief descriptions of what was happening in the pictures. The responses were analysed in terms of the presence or absence of certain themes. The themes McClelland and his associates were looking for revolved around the following motivators: achievement, affiliation and power.

THEMATICAPPERCEPTION TEST The Thematic Apperception Test or TAT is amongst the most widely used, researched, and taught psychological tests TAT was developed by the American psychologist Henry A. Murray and Christina D. Morgan at during the 1930s to explore the underlying dynamics of personality, such as internal conflicts, dominant drives and interests and motives.

It uses a standard series of 31 provocative yet ambiguous pictures about which the subject must tell a story. A subject is asked questions such as: What dialogue might be carried on between characters? How might the "story" continue after the picture shown? For this reason, the TAT is also known as the 'picture interpretation technique'.

Today, the TAT is widely used as a tool for research around areas of psychology such as dreams, fantasies and what motivates people to choose their occupation. Sometimes it is used in a psychiatric context to assess disordered thinking, in forensic examinations to evaluate crime suspects or to screen candidates for high-stress occupations.

THE NEXT FEW SLIDES WILL CONTAIN SOME PICTURES. THEIR MEANING WILL DIFFER FROM PERSON TO PERSON AS THEY WILL BE INTEPRETED ACOORDING TO INDIVIDUAL PERCEPTION

Achievement The need for achievement is characterised by the wish to take responsibility for finding solutions to problems, master complex tasks, set goals, get feedback on level of success.

THE NEED FOR ACHIEVEMENT (N-ACH) The n-ach person is 'achievement motivated' and therefore: seeks achievement, attainment of realistic but challenging goals, advancement in the job. There is a strong need for feedback as to achievement and progress, accompained with a need for a sense of accomplishment.

Affiliation The need for affiliation is characterised by a desire to belong, an enjoyment of teamwork, a concern about interpersonal relationships, and a need to reduce uncertainty.

THE NEED FOR AFFILIATION (N-AFFIL) The n-affil person is 'affiliation motivated', He has a need for friendly relationships and is motivated towards interaction with other people. The affiliation driver produces motivation and need to be liked and held in popular regard. These people are team players.

Power (Influence) The need for power is characterised by a drive to control and influence others, a need to win arguments, a need to persuade and prevail.

THE NEED FOR AUTHORITY AND POWER (N-POW) The n-pow person is 'authority motivated'. This driver produces a need to be influential, effective to make an impact. There is a strong need to lead and for their ideas to prevail. There is also motivation and need towards increasing personal status and prestige.

TYPES OF POWER A persons need for power is of two types PERSONAL POWER Those who need Personal Power want to direct others, which is often perceived as undesirable.

INSTITUTIONAL POWER Persons who need Institutional power or Social Power want to organise the efforts of others to further the goals of the organisation. Managers with high need for institutional power tend to be more effective managers as compared to those with high Personal Power.

Need for Achievement and Entrepreneurship McClelland further described the profile of an entrepreneur as someone high in achievement motivation and low in power motivation, while good managers have high power motivation and low achievement motivation.

Direction What Is Motivation? Intensity Persistence

Why Rewards Often Fail to Motivate ,[object Object]

Rewards lack an “appreciation effect”

Extensive benefits become entitlements

Counterproductive behavior is rewarded

Too long a delay between performance and rewards

Too many one-size-fits-all rewards

Use of one-shot rewards with a short-lived motivational impact

Continued use of demotivating practicessuch as layoffs, across-the-boardraises and cuts, and excessive executive compensation,[object Object]

Schedules of Reinforcement Schedule Description Continuous Reinforcer follows every response(CRF) IntermittentReinforcer does not follow every response Fixed ratio (FR)A fixed number of responses must be emitted before reinforcement occurs. Variable ratio (VR)A varying or random number of responses must be emitted before reinforcement occurs. Fixed interval (FI)The first response after a specific period of time has elapsed is reinforced Variable interval (VI)The first response after varying or randomperiods of time have elapsed is reinforced.

Maslow’s Hierarchy of Needs Self Esteem Social Safety Physiological

Herzberg’s Two-Factor Theory Hygiene Factors Motivational Factors ,[object Object]

AchievementJob Satisfaction 0 High High Job Dissatisfaction

Alderfer’s ERG Theory Existence Growth Relatedness

The Theory of Needs David McClelland Need for Achievement (nAch) Need for Power (nPow) Need for Affiliation (nAff)

Intrinsic Motivators Extrinsic Motivators Cognitive Evaluation

The Job Characteristics Model Outcomes Critical psychological states Core job characteristics *High internal work motivation*High growth satisfaction*High general job satisfaction*High work effectiveness *Experienced meaningfulness of the work*Experienced responsibility for outcomes of the work*Knowledge of the actual results of the work activities *Skill variety*Task identity*Task significance*Autonomy*Feedback from job Moderators 1. Knowledge and skill 2. Growth need strength 3. Context satisfactions

Approaches to Job Design 1. The Mechanistic Approachfocuses on identifying the most efficient way to perform a job. Employees are trained and rewarded to perform their jobs accordingly. 2. Motivational Approachesthese techniques (job enlargement, job rotation, job enrichment, and job characteristics) attempt to improve employees’ affective and attitudinal reactions and behavioral outcomes. 3. Biological and Perceptual- Motor ApproachesBiological techniques focus on reducing employees’ physical strain, effort, fatigue, and health complaints. The Perceptual-Motor Approach emphasizes the reliability of work outcomes by examining error rates, accidents, and workers’ feedback about facilities and equipment.

Skills and Best Practices: Applying the Job Characteristics Model Diagnose the level of employee motivation and job. satisfaction and consider redesigning jobs when motivation ranges from low to moderate. Determine whether job redesign is appropriate in a given context. Redesign jobs by including employees’ input.

Equity Theory Ratio Comparison* Employee’s Perception Outcomes A Inputs A Outcomes A Inputs A Outcomes A Inputs A Outcomes B Inputs B Outcomes B Inputs B Outcomes B Inputs B < Inequity (Under-Rewarded) = Equity > Inequity (Over-Rewarded) *Where A is the employee, and B is a relevant other or referent.

$2 1 hour $4 2 hours = $2 per hour = $2 per hour Negative and Positive Inequity A. An Equitable Situation Other Self

B. Negative Inequity Self Other $2 1 hour $3 1 hour = $2 per hour = $3 per hour Negative and Positive Inequity (cont)

$2 1 hours $3 1 hour = $1 per hour = $3 per hour Negative and Positive Inequity (cont) C. Positive Inequity Other Self

Organizational Justice Distributive Justice:The perceived fairness of how resources and rewards are distributed. Procedural Justice:The perceived fairness of the process and procedures used to make allocation decisions. Interactional Justice:The perceived fairness of the decision maker’s behavior in the process of decision making.

Distributive Justice Procedural Justice Amount and Allocation of Rewards Perceived Fairness of the Distribution Process Research into Equity

Equity Sensitivity Equity Sensitivity is an individual’s tolerance for negative and positive equity. ,[object Object]

1. Effort-performance relationship 2. Performance-rewards relationship 3. Rewards-personal goals relationship Expectancy Theory Individual Effort Individual Performance Organizational Rewards 1 2 3 Personal Goals

Vroom’s Expectancy Theory Concepts Expectancy:Belief that effort leads to a specific level of performance Instrumentality:A performance  outcome perception. Valence:The Value of a reward or outcome

Managerial Implications of Expectancy Theory Determine the outcomes employees value. Identify good performance so appropriate behaviors can be rewarded. Make sure employees can achieve targeted performance levels. Link desired outcomes to targeted levels of performance. Make sure changes in outcomes are large enough to motivate high effort. Monitor the reward system for inequities.

Organizational Implications of Expectancy Theory Reward people for desired performance, and do not keep pay decisions secret. Design challenging jobs. Tie some rewards to group accomplishments to build teamwork and encourage cooperation. Reward managers for creating, monitoring, and maintaining expectancies, instrumentalities, and oucomes that lead to high effort and goal attainment. Monitor employee motivation through interviews or anonymous questionnaires. Accommodate individual differences by building flexibility into the motivation program.

Goal-Setting Theory Specificity Challenge Feedback Participation Commitment Self-efficacy Characteristics Culture

Insights from Goal-Setting Research ,[object Object]

Specific Difficult Goals Lead to Higher Performance for Simple Rather Than Complex Tasks.- Goal specificity pertains to the quantifiability of a goal.- Specific difficult goals impair performance on novel, complex tasks when employees do not have clear strategies for solving these types of problems.

Feedback Enhances The Effect of Specific, Difficult Goals.- Goals and feedback should be used together.,[object Object]

Goal Commitment and Monetary Incentives Affect Goal-Setting Outcomes.- Difficult goals lead to higher performance when employees are committed to their goals.- Difficult goals lead to lower performance when employees are not committed to their goals.- Goal based incentives can lead to negative outcomes for employees in complex, interdependent jobs requiring cooperation.,[object Object]

An Integrative Model of Motivation High nAch Equity Comparison OO IA IB Ability Opportunity Performance Appraisal Criteria Personal Goals Individual Performance Individual Effort Organization Rewards Reinforcement Performance Appraisal System Dominant Needs Goals Direct Behavior

Special Motivation Issues Professionals Contingent workers Diversified workforce Low-skilled service workers Highly repetitive tasks

What is motivation ? It is a result of interaction between the individual and the situation The word “Motivation” has been derived from a Latin word “movere” meaning “to move”. Stephen Robbins defines motivation as “the process that accounts for an individual’s intensity, direction and persistence of effort towards attaining a goal”

What is motivation ? Intensity – Direction – Persistence – How hard? Where are the efforts going ? How long?

What is motivation ? According to Fred Luthans “ motivation is a process that starts with physiological and psychological deficiency or need that activates a behavior or a drive that is aimed at a goal or incentive” Needs : are created where there is physiological or psychological imbalance. Drives : or motives are set up to alleviate needs Incentives : are anything that will alleviate a need & reduce the drive.

Types of motives Primary Motives General Motives Secondary Motives

Primary Motives Primary Motives are unlearned and physiologically based. These motives not necessarily take precedence over general and secondary motive. E.g. Hunger, thirst, avoidance of pain, maternal concerns and physical needs.

General Motives General Motives are unlearned but not physiologically based. Unlike primary motives, they induce the amount of stimulation. E.g. Curiosity, manipulation, activity and affection.

Secondary Motives Secondary Motives are learned and not physiologically based. E.g. Power, achievement, affiliation security and status.

Secondary Motive – Power motive Need for power Influencing people to change their attitudes or behavior Controlling people and activities Being in a position of authority over others. Gaining control over information & resources Defeating an opponent or enemy.

Secondary Motive – Achievement motive Need for achievement Doing better than competitors Attaining or surpassing a difficult goal Solving a complex problem Carrying out a challenging assignment successfully Developing a better way to do something.

Secondary Motive – Affiliation motive Need for affiliation Being liked by many people Being accepted as a part of the group / team Maintaining harmonious relations and avoiding conflicts Participating in pleasant social activities.

Secondary Motive – Security motive Need for security Having a secure job Being protected against loss of income Having protection against illness or disability Avoiding tasks or decisions with a risk of failure and blame. Security is basically based on fear or loss of something.

Secondary Motive – Status motive Status is defined as “relative ranking” that a person holds in the group, organization or society. Status may be high or low

Secondary Motive – Status motive Need for status Having the right car and clothes Working for the right job and right company Having a degree from the right university Living in the right neighborhood and having the membership of the right club Having executive privileges.

Maslow’s hierarchy of needs Theory. Herzberg’s two-factor theory. Victor Vroom’s theory. Porter and Lawler’s theory.

Abraham Maslow’s hierarchy of needs theory It is based on the following propositions; Man is a wanting being Satisfied need is not a motivator The needs of a man has hierarchy or importance.

Abraham Maslow’s hierarchy of needs theory Self Actualization Lower order needs Higher order needs Esteemneeds Social Needs Safety Needs Physiological Needs

Few weaknesses It states that lower level people are able to satisfy lower order needs and higher level people are able to satisfy higher order needs It ignores the fact that an act may be motivated by several needs and not any single need.

Fredrick Herzberg’s Two-factor Theory He conducted a motivational study on 200 accountants and engineers He made use of critical incident method for analyzing data Questions : When did you feel particularly good about your job? When did you feel exceptionally bad about your job ?

Frederick Herzberg’s Two-factor Theory The good feelings = Job experience / job content The bad feelings = Job surroundings / job context Job content factors = Motivators Job context factors = Hygiene

Hygiene Factors Motivators Company policy and administration Supervision Salary Interpersonal relationships Working conditions. Achievement Recognition Work itself Responsibility Advancement. Hygiene factors prevent dissatisfaction, but do not lead to satisfaction.

Few weaknesses There is always a question regarding the samples used by Herzberg Low-complexity job workers Age The varied situations may affect preferences for motivators.

Victor Vroom’s Expectancy theory of motivation ,[object Object]

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.

An employee will be motivated to exert high level of effort when

he/she believes that the effort will lead to a good performance appraisal; that a good appraisal will lead to organizational rewards such as a bonus, salary increments or promotion;

and that the rewards will satisfy the employee’s personal goals.,[object Object]

Weakness Like other theories, this too is a model that helps managers understand certain aspects of motivation, but it does not give practical solutions to solve motivational problems.

InsuranceINTRINSIC ,[object Object]

Taking challenges,[object Object]

Chapter 4 Motivating Self and Others

Theories of Motivation What is motivation? How do needs motivate people? Are there other ways to motivate people? Do equity and fairness matter? How can rewards and job design motivate employees? What kinds of mistakes are made in reward systems?

What is Motivation? Motivation The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal

Theory X and Theory Y Theory X Theory Y

Motivators Intrinsic Extrinsic

Needs Theories of Motivation Basic idea: Individuals have needs that, when unsatisfied, will result in motivation Maslow’s Hierarchy of Needs Motivation-Hygiene theory Alderfer’s ERG theory McClelland’s Theory of Needs

Maslow’s Hierarchy of Needs Physiological Safety Social Esteem Self-actualization

Exhibit 4-1 Maslow’s Hierarchy of Needs Self- actualization Esteem Social Safety Physiological

Herzberg’s Motivation-Hygiene Theory Hygiene factors - necessary, but not sufficient, for healthy adjustment Extrinsic factors; context of work Motivators - the sources of satisfaction Intrinsic factors; content of work

Comparison of Satisfiers and Dissatisfiers Source: Reprinted by permission of Harvard Business Review. An exhibit from Frederick Herzberg, “One More Time: How Do You Motivate Employees?” Harvard Business Review 81, no. 1 (January 2003), p. 90. Copyright © 1987 by the President and Fellows of Harvard College; all rights reserved.

Criticisms of Motivation-Hygiene Theory The procedure that Herzberg used is limited by its methodology The reliability of Herzberg’s methodology is questioned Herzberg did not really produce a theory of motivation No overall measure of satisfaction was used The theory is inconsistent with previous research

Alderfer’s ERG Theory Existence Relatedness Growth

McClelland’s Theory of Needs Need for Achievement Need for Power Need for Affiliation

Exhibit 4-4 Summarizing the Various Needs Theories Alderfer Herzberg Maslow McClelland Self-Actualization Need for Achievement Growth Motivators Esteem Need for Power Relatedness Affiliation Hygiene Need for Affiliation Factors Security Existence Physiological

Summary: Hierarchy of Needs Maslow Herzberg Alderfer McClelland

Summary: Impact of Theory Maslow Herzberg Alderfer McClelland

Summary: Support and Criticism of Theory Maslow Herzberg Alderfer McClelland

Process Theories of Motivation Look at the actual process of motivation Expectancy theory Goal-setting theory

Expectancy Theory The theory that individuals act depending on whether their effort will lead to good performance, whether good performance will be followed by a given outcome, and whether that outcome is attractive to them.

Expectancy Relationships The theory focuses on three relationships: Effort-performance relationship Performance-reward relationship Rewards-personal goals relationship

Exhibit 4-5 How Does Expectancy Theory Work? My professor offers me $1 million if I memorize the textbook by tomorrow morning. Expectancy Instrumentality Valence Effort Performance Link Performance Rewards Link Rewards Personal Goals Link No matter how much effort My professor does not look There are a lot of wonderful things I put in, probably not possible like someone who has $1 million I could do with $1 million to memorize the text in 24 hours E=0 I=0 V=1 Conclusion: Though I value the reward, I will not be motivated to do this task.

Exhibit 4-6 Steps to Increasing Motivation, Using Expectancy Theory Improving Instrumentality Improving Expectancy Improving Valence Increase the individual ’ s belief that Improve the ability of the Make sure that the reward is performance will lead to reward individual to perform meaningful to the individual • Observe and recognize performance • Make sure employees have skills • Ask employees what rewards they • Deliver rewards as promised for the task value • Indicate to employees how previous • Provide training • Give rewards that are valued good performance led to greater • Assign reasonable tasks and goals rewards

Goal-Setting Theory The theory that specific and difficult goals lead to higher performance. Goals tell an employee what needs to be done and how much effort will need to be expended. Specific hard goals produce a higher level of output than does the generalized goal of “do your best.”

How Does Goal Setting Motivate? Goals: Direct attention Regulate effort Increase persistence Encourage the development of strategies and action plans Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-177 Copyright © 2007 Pearson Education Canada

Goals Should Be SMART For goals to be effective, they should be SMART: Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-178 Copyright © 2007 Pearson Education Canada

Exhibit 4-7 Locke’s Model of Goal Setting Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-179 Copyright © 2007 Pearson Education Canada Directing attention Regulating effort Goals T ask motivate performance by . . . Inc r easing persistence Encouraging the development of strategies and action plans Source: Adapted from E. A. Locke and G. P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs, NJ: Prentice Hall, 1980). Reprinted by permission of Edwin A. Locke.

Contingency Factors in Goal Setting Self-efficacy An individual’s belief that he or she is capable of performing a task. Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-180 Copyright © 2007 Pearson Education Canada

Management by Objectives A program that encompasses Specific goals Participative decision-making Explicit time period Performance feedback

XYZ Company Overall Organizational Objectives Divisional Objectives Consumer Products Division Industrial Products Division Departmental Objectives Sales Production Marketing Develop Customer Service Research Individual Objectives Cascading Objectives

Responses to the Reward System Equity Theory Fair Process

Equity Theory Main points Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities. Equity theory recognizes that individuals are concerned not only with the absolute amount of rewards for their efforts, but also with the relationship of this amount to what others receive.

Exhibit 4-7 Equity Theory Ratio of Output to Input Person 1’s Perception Person 1 Inequity, underrewarded Person 2 Person 1 Equity Person 2 Person 1 Inequity, overrewarded Person 2

Responses to Inequity Change Inputs Change Outcomes Adjust Perceptions of Self Adjust Perceptions of Others Choose a Different Referent Leave the Field

Fair Process and Treatment Historically, equity theory focused on: Distributive justice However, equity should also consider Procedural justice

Fair Process and Treatment Distributive Justice Procedural Justice Interactional Justice

Four Key Rewards to Increase Intrinsic Motivation Choice Competence Meaningfulness Progress

Exhibit 4-9 Building Blocks for Intrinsic Rewards Leading for Competence Leading for Choice • Knowledge • Delegated authority • T rust in workers • Positive feedback • Security (no punishment) for honest mistakes • Skill recognition • Challenge • A clear purpose • Information • High, non-comparative standards Leading for Progress Leading for Meaningfulness • A collaborative climate • A noncynical climate • Clearly identified passions • Milestones • An exciting vision • Celebrations • Access to customers • Relevant task purposes • Whole tasks • Measurement of improvement Source: Reprinted with permission of the publisher. From Intrinsic Motivation at Work: Building Energy and Commitment. Copyright © K. Thomas. Berrett-Koehler Publishers Inc., San Francisco, CA. All rights reserved. www.bkconnection.com.

Variable-Pay Programs A portion of an employee’s pay is based on some individual and/or organizational measure of performance. Individual-based Group-based Organizational-based

Exhibit 4-11 Comparing Various Pay Programs

Designing Motivating Jobs Job Characteristic Model (JCM) is a model that identifies five core job dimensions and their relationship to personal and work outcomes. Job Enrichment

JCM – Core Job Dimensions Skill variety Task identity Task significance Autonomy Feedback

JCM – Critical Psychological States Experienced meaningfulness Experienced responsibility for outcomes Knowledge of the actual results

Exhibit 4-12 – Examples of High and Low Job Characteristics Skill Variety Task Identity Task Significance Autonomy Feedback

Exhibit 4-13 The Job Characteristics Model Core job Personal and Critical dimensions work outcomes psychological states Skill variety Experienced High internal Task identity meaningfulness work motivation Task significance of the work High-quality Experienced work performance responsibility Autonomy for outcomes High satisfaction of the work with the work Knowledge of the Low absenteeism Feedback Source: J. R. Hackman, G. R. Oldham, Work Design (excerpted from pages 78-80). Copyright © 1980 by Addison-Wesley Publishing Co. Reprinted by permission of Addison-Wesley Longman. actual results of and turnover the work activities Employee growth- need strength

Beware the Signals That Are Sent By Rewards Often reward systems do not reflect organizational goals: Individuals are stuck in old patterns of rewards and recognition. Organizations don’t look at the big picture. Management and shareholders focus on short-term results.

Innovative thinking and risk taking

Employee involvement and empowerment

CandorBut we reward: ,[object Object]

Proven methods and no mistakes

Technical achievements and accomplishments

Tight control over operations, resources

Shipment on schedule, even with defects

Reporting good newsExhibit 4-10Management Reward Follies

Why Do Managers Engage in Reward Follies? Stuck in old patterns of rewards and recognition Don’t look at the big picture Focus on short-term results

Caveat Emptor: Apply Motivation Theories Wisely Motivation Theories Are Culture-Bound Canada and US rely on extrinsic rewards more than other countries. Japan and Germany rarely use individual incentives. China is more likely to give bonuses to everyone.

Can We Just Eliminate Rewards? Alfie Kohn suggests that organizations should focus less on rewards, more on creating motivating environments: Abolish Incentives. Re-evaluate Evaluation. Create Conditions for Authentic Motivation. Encourage Collaboration. Enhance Content. Provide Choice.

Putting It All Together What we know about motivating employees in organizations: Recognize individual differences. Employees have different needs. Don’t treat them all alike. Spend the time necessary to understand what’s important to each employee. Use goals and feedback. Allow employees to participate in decisions that affect them. Link rewards to performance. Check the system for equity.

Summary and Implications What is Motivation? Motivation is the process that accounts for an individual’s intensity, direction, and persistence of effort toward reaching the goal. How do needs motivate people? All needs theories of motivation propose a similar idea: individuals have needs that, when unsatisfied, will result in motivation.

Summary and Implications Are there other ways to motivate people? Process theories focus on the broader picture of how someone can set about motivating another individual. Process theories include expectancy theory and goal- setting theory (and its application, management by objectives). Do equity and fairness matter? Individuals look for fairness in the reward system. Rewards should be perceived by employees as related to the inputs they bring to the job.

Summary and Implications 5. How can rewards and job design motivate employees? Recognition helps employees feel that they matter. Employers can use variable-pay programs to reward performance. Employers can use job design to motivate employees. Jobs that have variety, autonomy, feedback, and similar complex task characteristics tend to be more motivating for employees. 6. What kinds of mistakes are made in reward systems? Often reward systems do not reward the performance that is expected. Also, reward systems sometimes do not recognize that rewards are culture-bound.

Summary Need Theories Be aware that individuals differ in their levels and types of needs Goal Setting Theory Clear and difficult goals lead to higher levels of employee productivity. Expectancy Theory Offers a relatively powerful explanation of employee productivity, absenteeism, and turnover.

Summary Equity Theory Strongest when predicting absence and turnover behaviours. Weakest when predicting differences in employee productivity. Cognitive Evaluation Theory When you give extrinsic rewards for behaviour that had been previously intrinsically rewarded this can result in a decrease in the overall level of motivation.

Motivating Self and Others Questions for Consideration 1. What is motivation? 2. How do needs motivate people? 3. Are there other ways to motivate people? 4. Do equity and fairness matter? 5. Are there tips for motivating people for different goals? 6. How do you motivate for individual differences? 7. What kinds of mistakes are made in reward systems? 8. Do motivational theories work the same in every country? 9. Could rewards be overrated?

What is Motivation? Motivation The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal Intensity: how hard a person tries Direction: where effort is channeled Persistence: how long effort is maintained

Theory X and Theory Y Theory X The assumption that employees dislike work, will attempt to avoid it, and must be coerced, controlled, or threatened with punishment if they are to perform. Theory Y The assumption that employees like work, are creative, seek responsibility, and can exercise self-direction and self-control.

Motivators Intrinsic A person’s internal desire to do something, due to such things as interest, challenge, and personal satisfaction. Extrinsic Motivation that comes from outside the person, such as pay, bonuses, and other tangible rewards.

Needs Theories of Motivation Basic idea: Individuals have needs that, when unsatisfied, will result in motivation Maslow’s hierarchy of needs Herzberg’s two factor theory (motivation-hygiene theory) Alderfer’s ERG theory McClelland’s theory of needs

Maslow’s Hierarchy of Needs Physiological Includes hunger, thirst, shelter, sex and other bodily needs Safety Includes security and protection from physical and emotional harm Social Includes affection, belongingness, acceptance, and friendship

Maslow’s Hierarchy of Needs Esteem Includes internal esteem factors such as self-respect, autonomy, and achievement; and external esteem factors such as status, recognition, and attention Self-actualization The drive to become what one is capable of becoming; includes growth, achieving one’s potential, and self-fulfilment

Herzberg’s Motivation-Hygiene Theory Hygiene factors - necessary, but not sufficient, for healthy adjustment Extrinsic factors; context of work Company policy and administration Unhappy relationship with employee's supervisor Poor interpersonal relations with one's peers Poor working conditions

Herzberg’s Motivation-Hygiene Theory Motivators - the sources of satisfaction Intrinsic factors; content of work Achievement Recognition Challenging, varied or interesting work Responsibility Advancement

Exhibit 4-2 Contrasting Views of Satisfaction and Dissatisfaction Traditional view Dissatisfaction Satisfaction Herzberg's view Motivators No Satisfaction Satisfaction Hygiene Factors Dissatisfaction No dissatisfaction

Alderfer’s ERG Theory Existence Concerned with providing basic material existence requirements Relatedness Desire for maintaining important interpersonal relationships Growth Intrinsic desire for personal development

McClelland’s Theory of Needs Need for Achievement The drive to excel, to achieve in relation to a set of standards, to strive to succeed Need for Power The need to make others behave in a way that they would not have behaved otherwise Need for Affiliation The desire for friendly and close interpersonal relationships

Summary: Hierarchy of Needs Maslow: Argues that lower-order needs must be satisfied before one progresses to higher-order needs. Herzberg: Hygiene factors must be met if person is not to be dissatisfied. They will not lead to satisfaction, however. Motivators lead to satisfaction. Alderfer: More than one need can be important at the same time. If a higher-order need is not being met, the desire to satisfy a lower-level need increases. McClelland: People vary in the types of needs they have. Their motivation and how well they perform in a work situation are related to whether they have a need for achievement, affiliation, or power.

Summary: Impact of Theory Maslow: Enjoys wide recognition among practising managers. Most managers are familiar with it. Herzberg: The popularity of giving workers greater responsibility for planning and controlling their work can be attributed to his findings. Shows that more than one need may operate at the same time. Alderfer: Seen as a more valid version of the need hierarchy. Tells us that achievers will be motivated by jobs that offer personal responsibility, feedback, and moderate risks. McClelland: Tells us that high need achievers do not necessarily make good managers, since high achievers are more interested in how they do personally.

Summary: Support and Criticism of Theory Maslow: Research does not generally validate the theory. In particular, there is little support for the hierarchical nature of needs. Criticized for how data were collected and interpreted. Herzberg: Not really a theory of motivation: Assumes a link between satisfaction and productivity that was not measured or demonstrated. Alderfer: Ignores situational variables. McClelland: Mixed empirical support, but theory is consistent with our knowledge of individual differences among people. Good empirical support, particularly on needs achievement.

Expectancy Theory 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.

Expectancy Relationships The theory focuses on three relationships: Effort-performance relationship The perceived probability that exerting a given amount of effort will lead to performance. Performance-reward relationship The degree to which the individual believes that performing at a particular level will lead to a desired outcome. Rewards-personal goals relationship The degree to which organizational rewards satisfy an individual’s personal goals or needs and are attractive to the individual.

Goal-Setting Theory The theory that specific and difficult goals lead to higher performance. Goals tell an employee what needs to be done and how much effort will need to be expended. Specific goals increase performance Difficult goals, when accepted, result in higher performance than do easy goals Feedback leads to higher performance than does nonfeedback. Specific hard goals produce a higher level of output than does the generalized goal of “do your best.” The specificity of the goal itself acts as an internal stimulus.

Equity Comparisons Self-inside Self-outside Other-inside Other-outside

Fair Process Distributive Justice Perceived fairness of the amount and allocation of rewards among individuals Procedural Justice Perceived fairness of the process used to determine the distribution of rewards Interactional Justice The quality of the interpersonal treatment received from another

Motivating to Show People Matter Employee Recognition Programs Programs that use multiple sources and recognizes both individual and group accomplishments. Linking Programs and Reinforcement Theory Consistent with reinforcement theory, rewarding a behaviour with recognition immediately following that behaviour is likely to encourage its repetition. Employee Recognition Programs in Practice In contrast to most other motivators, recognizing an employee’s superior performance often costs little or no money, making them highly attractive to industry.

Variable Pay Programs A portion of an employee’s pay is based on some individual and/or organizational measure(s) of performance. Individual-based Piece-rate wages, bonuses Workers are paid a fixed sum for each unit of production completed. Group-based Gainsharing: an incentive plan where improvements in group productivity determine the total amount of money that is allocated.

Variable Pay Programs Organizational-based Profit-sharing: organization wide programs that distribute compensation based on some established formula designed around a company’s profitability. Employee stock ownership plans (ESOPs): company-established benefit plans in which employees acquire stock as part of their benefits.

Exhibit 4-8 Comparing Various Pay Programs

Variable-Pay Programs Linking variable-pay plans and expectancy theory Evidence supports the importance of this linkage, especially for operative employees working under piece-rate systems. Group and organization wide incentives reinforce and encourage employees to sublimate personal goals for the best interests of their department or organization.

Rewards for Other Types of Performance Commissions beyond sales Customer satisfaction and/or sales team outcomes, such as meeting revenue or profit targets. Leadership effectiveness Employee satisfaction, or how the manager handles his or her employees. New goals All employees who contribute to specific organizational goals, such as customer satisfaction, cycle time, or quality measures.

Rewards for Other Types of Performance Knowledge workers in teams Performance of knowledge workers and/or professional employees who work on teams. Competency and/or skills Abstract knowledge or competencies—for example, knowledge of technology, the international business context, customer service, or social skills.

Motivating Specific Groups Professionals Contingent workers Low-skilled service workers Unionized employees Public sector employees

Motivating Professionals How are “professionals” different? Receive a great deal of “intrinsic” satisfaction from their work. Strong and long-term commitment to their field of expertise Well paid/ Chief reward is work itself. Value support More focused on work as central life interest.

Motivating Professionals How do we motivate professionals? Provide challenging projects Give them autonomy in follow interests and structure work. Reward with educational opportunities. Recognize their contributions.

Motivating Contingent Workers No simple solutions to motivating contingent workers. Contingent or temporary workers have little or no job security/stability, therefore they don’t identify with the organization or display the commitment of permanent employees. Contingent or temporary workers are typically provided with little or no health care, pensions, or similar benefits.

Motivating Contingent Workers Greatest motivating factor is the opportunity to gain permanent employment. Motivation is also increased if the employee sees that the job he or she is doing for the firm can develop salable skills.

Motivating Low-Skilled Service Workers Many 15- to 24-year-olds have “McJobs” with pay levels near minimum wage To motivate Employees want more respect Make jobs more appealing Raise pay levels Find unusual ways to motivate: Flexible work schedules Broader responsibility for inventory, scheduling, and hiring Creation of a “family” atmosphere among employees

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