CHAPTER FOUR

Motivation in Organizations
Learning Objectives:

After studying this chapter, you would be able to:

 Define motivation, explain the importance of motivation, and differentiate

intrinsic and extrinsic motivation.
 Compare and contrast each of the four major content/need theories of
motivation.
 Describe each of the three major cognitive theories of motivation and
explain how they facilitate the motivation theories.
 Explain the reinforcement theory of motivation and how it can be helpful to
managers.
 Understand the implications of each theory of motivation within the
context of the organization.
 Analyze Strategies for motivating organization members

4.1. The nature of Motivation

The word motivation is derived from the Latin word movere, which means “to
move.” In the context of Organizational Behavior, motivation is what energizes,
directs, and sustains human behavior. Thus motivation has three basic
characteristics. The first is the amount of energy or effort individuals are willing
to exert; those who exert more effort are highly motivated. The second
characteristic is that their effort must be goal-directed. The activity should focus
on achieving some objective, because motivation is being busy. The third
characteristic is that people persist in sustained activity. Highly motivated people
will continue in goal-directed effort for an extended period of time.

The following could be the working definition of motivation as forwarded by

different scholars:
Motivation is the force that energizes behavior, gives direction to behavior, and
underlies the tendency to persist ( Bartol and Martin, 1991, Management, P.445).
Motivation is defined as those psychological processes that cause the arousal,
direction, and persistent of voluntary actions that are goal-directed (Kreitner and
Kinicki, 1992, Organizational Behavior, P.162).
Motivation is the inner state that causes an individual to behave in a way that
ensures the accomplishment of some goal (Griffin, Ricky, 1990, Management, 3rd
ed., P.437).
In other words, motivation explains why people act as they do. The better a
manger understands organization members’ behavior, the more able that
manager will be to influence subordinates’ behavior to make it more consistent
with the accomplishment of organizational goals and objectives. In essence since

1
productivity is a result of the behavior of organization members, motivating
organization members is the key to reaching organizational goals.

4.2 The Importance of Employee Motivation

In most instances, employee performance is determined by three things:

motivation (the desire to do the job), ability (the capability to do the job), and the
work environment (the tools, materials and information needed to do the job).

Ability × Motivation × Environmental = Performance

conditions

Figure 4-1 The relationship between performance and ability, motivation and
environmental conditions. (Source: Bartol, Karthryn and Martin, David, 1991,
Management, P.446)

If an employee lacks ability, the manager knows what to do- either provide
training or replace the worker. If there is an environmental problem, the manager
again knows what to do-alter the environment to promote higher performance. If
motivation is the problem, the task for the manger is more challenging.
Individual behavior is a complex phenomenon, and the manger may be hard-
pressed to figure out the precise nature of the problem and how to solve it. Thus,
motivation is important because of its significance as a determinant of
performance and because of its intangible character.

4.3 Intrinsic versus Extrinsic Motivation

Edward Deci has defined the concepts for studying intrinsic and extrinsic
motivation. According to Deci, a person is intrinsically motivated if he or she
engages in an activity to feel competent about successfully completing the
activity. The reward to the person comes from the feelings of self worth about
successfully completing the task. There is no external reward that generates
these feeling since the reward is internal to person. Human beings are creatures
in constant interaction with their environment and they need to feel effective or
competent in relation to their environment. This essential need is the basis for
intrinsic motivation. Extrinsic motivation, on the other hand, comes through
reward structures over and above the job itself. It takes the form of some
extrinsic drive reduction in hunger, thirst, material reward, etc. It is generated by
the lower levels of Maslow’s needs hierarchy.

Typically public agencies (like private companies) provide employees with a

mixture of intrinsic and extrinsic rewards. Both intrinsic and extrinsic
motivations are necessary to insure high quality recruitment, retention, and
performance at work. Intrinsic motivation is a motivational force ultimately tied
to intrinsic outcomes, while extrinsic motivation have been characterized as one

2
form of “investment” that an organization makes to insure a tie between the
employee and the organization:

Getting employees to feel that they have a big investment in the organization is
not very complicated. To foster these ties the organization has to offer
opportunities and working conditions that are competitive with other prospective
employers. Some of the more progressive corporations do this through liberal use
of stock option and bonus plans. In the public sector, typical investment factors
include promotion prospects, development of work group networks, performance
bonuses, and accrual of vacation, sick leave, and retirement benefits ( Romzek as
cited in Vasu, et.al., 1998,P.79).

Investments are based on the carrot and stick approach to motivation and are
highly dependent upon extrinsic motivators. The investments approach is also
clearly related to a rational choice perspective that assumes that the personal
interests of the individual are the most important driving forces behind their
behavior in the organization. Moreover, the investment approach assumes a
competitive stance on investments that must be maintained so that employees
have more motivation to stay than to leave.

Much research has focused on the conditions that must prevail regarding for
extrinsic rewards to be effective. One important aspect is whether or not the
rewards are contingent on performance. A common refrain among critics of
public sector management is that civil service regulations impede effective use of
extrinsic rewards to motivate employees when compared to private sector.
Though merit increases and even performance bonuses are a part of reward
structure for many public employees, public managers have seldom been
empowered to “hone” financial rewards to levels of employee performance.
However, this is not a common practice even in private sector. Moreover,
monetary incentives, in particular, can have unintended counter productive
organizational outcomes if employees cannot adequately determine what they
need to do or how their performance is being measured.

Employee commitment to an organization and its goals is another potential form

of motivation. Commitment is one expression of the psychological attachment
that an employee has to the organization. One value of commitment as
motivational force is predicated on a form of organizational self selection, that is,
public employees may enter public service for reasons other than maximization of
income, the do so to perform work that is meaningful. One commonly known
expression of commitment to public service is exemplified in the words of John F.
Kennedy “ask not what your country can do for you ask what you can do for your
country.” The actual commitment by an employee may be to the organization’s
mission, goals, and values. Accordingly, employees who feel committed to
organization’s values and goals do not base their calculations exclusively on what
they have invested in the organization, they work to achieve a sense of personal

3
satisfaction from public service. Commitment is reflected in a belief and
acceptance of the organization’s goals, a willingness to exert effort toward the
realization of those goals, and a strong desire to maintain organizational
membership.

4.5 Motivation Theories

Several different theories about motivation have been proposed over the years.
Most of these theories can be categorized in to three basic types, with each
having slightly different implications for the management of individual
performance at work.

Content Theories: The category of theories of motivation that assumes

employees are motivated by the desire to fulfill inner needs. These theories
answer a “what” question, such as “what factors motivate people?” or “what need
do people seek to satisfy at work?’ The answers to these questions assume that
individuals have inner needs that they are motivated to reduce or fulfill at work.
Cognitive Theories: The category of theories of motivation that assumes
employees choose certain behaviors in order to meet their personal goals. These
theories are so labeled because they emphasize the “how” and “why’ of people’s
choosing certain behaviors to meet their personal goals.

Reinforcement Theory: Behavior theory of motivation that holds that behavior is a

function of its consequences (rewards and punishment).

4.4.1 CONTENT THEORIES/ NEED THEORIES

Content theories hold that motivation springs from a desire to satisfy a need.
They specify what motivates individuals (i.e., the content of needs). A need is a
strong feeling of deficiency in a particular aspect of a person’s life that creates an
uncomfortable tension, which the person attempts to reduce.

Some people are driven by a need to succeed; others by the need to be well liked,
to gain power and/or wealth, or to feel secure in their jobs. If an individual
succeeds in reducing the sense of deficiency, the intensity of the motivating force
is also reduced. Prominent theories that examine what needs individuals are
likely to have & how these needs operate as motivators: hierarchy of needs
theory, ERG Theory, two-factor theory, and acquired-needs theory.

Hierarchy of Needs Theory

One of the most widely known theories of motivation is the hierarchy of

needs theory, developed by psychologist Abraham maslow & popularized
during the early 1960s, which argues that individual needs form a five-
level hierarchy, our first need is for survival, so we concentrate on basic

4
physiological needs, such as food, water and shelter, until we feel fairly
sure that these needs are covered. Next, we concern ourselves with safety
needs, such pertain to the desire to feel safe, secure, and free from threats
to our existence. Once we feel reasonably safe and secure, we turn our
attention to relationships with others in order to fulfill our belongingness
(social) needs, which involve the desire to affiliate with and be accepted by
others. With support from loved ones, we focus on esteem needs, which are
related to the two pronged desire to have a positive self-image and to have
our contributions valued and appreciated by others. Finally, we reach the
highest level, self actualization needs, which pertain to the requirement of
developing our capabilities and reaching our full potential. Here we
concern ourselves with such matters as testing our creativity, seeing or
innovative ideas translated in to reality, pursuing new knowledge, and
developing our talents in uncharted directions. Needs at this highest level
are never completely fulfilled, because as we work to develop our
capabilities, both our potential and our needs for self-actualization grow
stronger. Some possible work-related means of fulfilling the various needs
in the hierarchy are shown in figure 4-2.

Potentials means of fulfillment at work

Self-Actualization Challenging projects, opportunities for

Needs innovation and creativity, training
Esteem Needs: Important projects, recognition, prestigious
Self respect from other office location.
Social needs Good workers, peers,superiors,custemers

Safety needs Job security, benefits like life insurance, safety

regulations.
Physiological needs Basic pay, work space, heat, water, company
cafeteria

Figure 4-2: Maslow’s hierarchy of needs (source: Bartol and Martin

(1991),Management, P.448)

Maslow separated the five needs into higher and lower orders. Phsiological
and safety needs were described as lower order; social, esteem, and self-
actualization were categorized as higher, order needs. The two orders were
differentiated on the premise that the higher order needs are satisfied
internally, where as lower order needs are predominantly satisfied
externally (by such things as wages, union contracts, and tesure.
maslow’s theory is based on two underlying principles. First is the
deficit principle – a satisfied need is not a motivator of behavior. People act

5
to satisfy “deprived” needs, those for which a satisfaction “deficit” exists.
Second is the progression principle the five needs exist in a hierarchy of
prepotency. The progression principle states that the hierarch defines a
step – by step process in which higher order needs are not active
motivators until lower order needs are fulfilled.

While maslow’s hierarchy has stimulated thinking about the various

needs that individuals have, it has some serious shortcomings. Research
suggests that needs may cluster into two or three categories, rather than
five. Also, the hierarchy of needs may not be the same for every one.
Entrepreneurs frequently pursue their dreams for years despite the relative
to work on satisfying several needs at once, even though some needs may
be more important then other at a given point in time.

ERG Theory

One of the most popular efforts to build on maslow’s work is the ERG
theory by clayton Alderfer, His theory collapses maslow’s five needs
categories in to three;

 Existence needs- desires for physiological and material well-being

 Relatedness needs – desires for satisfying interpersonal relationships.
 Growth needs the need for continuing personal growth and
development.

Alderfer’s ERG theory is similar to maslow’s theory except in three major

respects. First, Alderfer identified only three orders of human needs,
compared to maslow’s five orders. Second, in contrast to maslow,
Alderfer found that people sometimes activate their higer-level needs
before they have completely satisfied all of their lower-level needs Third,
Alderfer concluded that movement in his hierarchy of human needs is
not always upward (satisfaction-progression principle: a principle that
states that satisfaction of one level of need encourages concern for with
the next level]. This is reflected in his frustration-regression principle.
Frustration-regression principle states that if we are continually
frustrated in our attempts to satisfy a higher level need, we may cease
to be concerned about that need. Instead, may regress to exhibiting
greater concern for a lower-level need that is more concrete and
seemingly more within our grasp. For example, we may become more
concerned with establishing strong relation ships with coworkers if our

6
 continuing efforts to obtain more interesting work are ignored by our
boss.

Two factor Theory/motivator-Hygiene Theory/

The motivator – hygiene theory was proposed by psychologist Frederick

Herzberg. In the belief that an individual’s relation to work is basic and
that one’s attitude toward work can very well determine success or
failure, Herzberg investigated the question, “what do people want from
their jobs?” His theory is based on a landmark study in which he
interviewed 203 accountants and engineers. These interviews sought to
determine the factors responsible for job satisfaction and
dissatisfaction. Herzberg found separate and distinct clusters of
associated with job satisfaction and dissatisfaction. Job satisfaction was
more frequently associated with achievement, recognition,
characteristics of the work, responsibility, and advancement. These
factors were all related to out comes associated with the content of the
task being performed.

Herzberg labeled those factors motivators because each was associated

with strong effort and good performance. He hypothesized that
motivators cause a person to move from a state of no satisfaction to
satisfaction. The following figure depicts herzberg’s motivator-Hygiene
mode.
Therefore, Herzberg’s theory predicts managers can motivate individuals
by incorporating “motivators” into an individual’s job.

No satisfaction Motivators satisfaction

Jobs that do not Jobs offering achievement

Offer achievement, recognition, stimulating
works,
Recognition, responsibility, and
advancement
Stimulating work,
Responsibility, and
advancement
Hygiene Factors

Dissatisfaction No Dissatisfaction
Jobs with poor Jobs with good
Company policies Company policies
and administration , and administration,
technical supervision, technical supervision,
salary, interpersonal salary interpersonal
relationships with supervisors, relationships with supervisors,
and working conditions and working conditions 7
Figure 4-3: Herzberg’s motivator – Hygiene model

[source: Kreitner and kincki (1992), Organizational Behavior, P. 177)

Herzberg found job dissatisfaction to be associated primarily with

factors in the work context or environment. Specifically, company policy
and administration, technical supervision, salary, interpersonal relations
with one’s supervisor, and working conditions were most frequently
mentioned by employees expressing job dissatisfaction. Herzberg labled
this second cluster of factors hygiene factor.

He further proposed that they were not motivational. At best, according to

Herzberg’s interpretion, an individual will experience no job dissatisfaction
when he or she has no grievances about hygiene factors. When hygiene
factors are adequate, people will not be dissatisfied; neither will they be
satisfied.

The key to adequately understanding Herzberg’s motivator-hygiene

theory is recognizing that he does not place dissatisfaction and satisfaction
on opposite ends of a single, unbroken continuum. Instead, he believes
there is a zero midpoint between dissatisfaction and satisfaction.
Conceivably, an organization member who has good supervision, pay, and
working conditions but a tedious and unchallenging task with little chance
of advancement would be at the zero mid point. That person would have no
dissatisfaction (because of good hygiene factors)and no satisfaction
(because of a lack of motivators). Consequently, Herzberg warns managers
that it takes more than good pay and good working conditions to motivate
today’s employees. It takes an “enriched job” that offers the individual
opportunity for achievement and recognition, stimulation, responsibility,
and advancement.

Herzberg’s theory has been severely criticized for several reasons:

 It was formulated using a limited sample base of accountants and engineers two
grow, whose lower-level needs are satisfied.
 No overall measure of satisfaction was utilized. A person may dislike part of his or
her job yet still think the job is acceptable.
 The theory is inconsistent with previous research. The motivator hygiene theory
ignores situational variables.
 Herzberg assumed a relationship between satisfaction and productivity, but the
research methodology he used looked only at satisfaction not at productivity. To
make such research relevant, one must assume a strong relationship between
satisfaction and productivity.

8
Regardless of criticisms, Herzberg’s theory has been widely popularized with his
recommendations. As a case in point’ much of the initial enthusiasm for vertically
expanding jobs to allow workers greater responsibility in plaming and controlling their
work can probably be attributed largely to Herzberg’s findings & recommendations.

Acquired – Needs Theory

While the hierarchy of needs theory, ERG theory, and the two-factor theory view
certain needs as an inherent part of our makeup, Psychologist David c. McClelland
offers a different perspective, acquired-needs theory, which argues that our needs are
acquired or learned on the basis of our life experiences.

In the late 1940, David McClelland and his colleagues began experimenting with the
Thematic Apperception Test (TAT) as a way of examining human needs. The TA asks
people to view pictures and write stories about what they see. The stories are then
content analyzed for themes that display individual needs. From this research,
McClelland identified three needs that are central to his approach to motivation.

 Need for Achievement (nAch.) the desire to accomplish challenging tasks and
achieve a standard of excellence) in one’s work.
 Need for power (n pow): the desire to influence others and control one’s
environment.
 Need for Affiliation (nAff): The desire to establish and maintain friendly and
worm relations with other people.

Some people have a compelling drive to succeed, both they are striving for
personal achievement rather than the rewards of success.
They have a desire to do something better or more efficiently than it has been
done before. This drive is the need for achievement. From research in to the need
for achievement, McClelland found that high achievers differentiate themselves
from others by their desire to do things better. They seek situations in which they
can attain personal responsibility for finding solutions to problems, receive rapid
and Unambiguous feedback on their performance, and set moderately
challenging goals. They prefer working at a challenging problem and accepting
the personal responsibility for success or failure rather than leaving the outcome
to chance or the actions of others.

The need for power is the desire to have an impact, to be influential, and to
control others. Individuals high in npow enjoy being in charge, strike for
influence over others, prefer competitive and status oriented situation, and tend
to be more concerned with gaining prestige and influence over others than with
effective performance. McClelland distinguishes between two forms of the

9
power need: personal and Institutional. Individuals with a high need for personal
power want to dominate others for the sake of demonstrating their ability to
wield power. They expect followers to be loyal to them personally rather than to
the organization, sometimes, causing organizational goals to be thwarted. In
contrast, individuals with a high need for institutions power focus on working
with others to solve problems and further organization goals. Individuals with a
high need for institutional power like getting things done in an organized
fashion. They also are willing to sacrifice some of their own self-interests for the
good of the organization. Motivating individuals with a high need for
institutional power involves giving them opportunities to hold positions that
entail organizing the efforts of others.

The third need isolated by McClelland is affiliation. This need has received the
least attention of researchers. Affiliation is the desire to be liked and accepted by
others. Individuals with a high nAff strive for friendship, prefer cooperative
situations rather than competitive ones, and desire relationships involving a high
degree of mutual understanding.

McClelland has analyzed various needs in terms of their relationship to

managerial effectiveness. He originally thought that individuals with a high need
for achievement would make the best managers. His subsequent work suggests
that, to the contrary, high nAch individuals tend to concentrate on their own
individuals often make good entrepreneurs because initial success frequently
depends largely on individual achievement. They may not, however, make good
managers in situation that require working with a number of others and waiting
to learn the results of their efforts. Similarly, individuals with a personal-power
orientation run into difficulties as managers because they often attempt to use
the efforts of others for their own personal benefit. Individuals with a high need
for affiliation also may have a managerial weakness, because they tend to
concentrate on maintaining good interpersonal relationships rather than
achieving goals.

McClelland’s work suggests that individuals with a high institutions power need
make the best managers because they are oriented toward coordinating the
efforts of others to achieve long-term organizational goals. Thus the need profile
of successful managers, at least in competitive environments, appears to include
(1) a moderate to high need for institutional power, (2) a moderated need for
achievement to facilitate individual contributions early in one’s career and a
desire for theorganization to maintain a competitive edge as one moves to higher
levels, and (3) at least a minimum need for affiliation to provide sufficient
sensitivity for influencing others.

10
 What happens if an individual wants to be a manager but doesn’t have the
appropriate need profile? McClelland argues that it is possible to develop certain
needs in ourselves and others. Through training McClelland has successfully
increased the need for achievement of individuals who subsequently received
faster promotions and made more money than those not trained. This type of
training exposes individuals to tasks involving the achievement of goals and
gradually makes the situations more challenging as the individuals increase their
ability to handle the tasks. Trainees also are exposed to the behavior of
appearing interracial models. Similar approaches apparently can be used to faster
the need for institutional powers. Other needs, such as the need for affiliation,
may be more difficult to develop through such methods.

Assessing Need Theories

A comparison of the needs identified by the four theories is shown in figure 4-4.
The theories are generally compatible in pointing to the importance of higher-
level needs as a source of motivation. The ERG and acquired needs theories
place greater emphasis than the other two theories on the notion that individuals
differ in the make up of their need structures, a stance that has stronger research
support than the view that the need structures of individuals are basically the
same. In fact, McClelland’s work demonstrates the possibility of acquiring needs
related to managerial success through such mechanism as training and carefully
chosen work assignments.

The frustration regression aspect of ERG theory, in which workers who are
frustrated with attempts at meeting growth needs may revert to being concerned
with a more concrete need, could have serious implications for organizations.
Given the widespread current requirements for new & innovative ideas,
improved quality, and greater capacity to implement needed changes, festering
growth needs is particularly important.

Maslow: Hierarchy of needs Alderferi Herzberg : McClelland:

Theory ERG Theory Two factor Acquired Needs Theory
Theory
Physiological Existence Hygine
Safety and security
Belongingness & love Relatedness Need for affiliation
(Social)
Self – esteem Growth Motivators Need for achievement
Self - actualization Need for power

Figure 4-4 : comparison of needs in four theories {Source: Bartol & martin (1991), Management, P. 455}

11
“Is there a hierarchy of needs?” Research does not support the precise five stop hierarchy of
needs postulated by Maslow. It seems more legitimate to view human needs as operating in a
flexible hierarchy, such as the one in Alderfer’s ERG Theory, However, it is useful to
distinguish b/n the motivational properties of lower-order & higher order needs.

“How important are the various needs?” Research is inconclusive as to the importance of
different needs. Individuals vary widely in this regard. They may also value needs differently at
different times, and at different ages or career stages. This is another reason why managers
should use the insights of all the need (content) theories to best understand the differing needs
of people at work.

4.4.2 COGNITIVE THEORIES /Process Theories/

Content theories try to identify the internal desires that influence our behavior, but they do
not go very far in explaining the thought processes that are involved. In contrast, cognitive
theories attempt to isolate the thinking patterns that we use in deciding whether or not to
behave in a certain way. Cognitive theories are not necessarily at odds with need theories,
rather, they look at motivation from a different perspective. Because they focus on the
thought processes associated with motivation, cognitive theories are sometimes called
process theories. Three major cognitive theories that address work motivation are the
expectancy, equity, and goal-setting theories.

Expectancy Theory

The expectancy theory of motivation, originally proposed by victor H. Vroom, argues that
we consider three main issues before we expend the effort necessary to perform at a given
level. These three issues are shown in the circles of figure 4-5, which depicts the basic
components of expectancy theory.

Expectancy: An expectancy, according to vroom’s terminology, represents an individual’s

belief that a particular degree of effort will be followed by a particular level of performance.
In other words, it is an effort – performance expectation. Expectancies take the form of
subjective probabilities. As you may recall from a course in statistics, probabilities range
from zero to one. An expectancy of zero indicates effort has no anticipated impact on
performance.

For example, suppose you do not know how to use a typewriter. No matter how much effort
you exert, your perceived probability of typing 30 errors – free words per minute likely
would be zero. An expectancy of one suggests that performance is totally depended on
effort. If you decided to take a typing course as well as practice a couple of hours a day for
a few weeks (high effort), you should be able to type 30 words per minute without errors.

12
In contrast, if you do not take a typing course and only practice an hour or two per week
(low effort), there is a very low probability (say, a 20 percent chance) of being able to type
30 words per minute without any errors.

Instrumentality: An instrumentality is a performance outcome perception. It is a person’s

brief that successful performance will be followed by rewards and other potential outcomes.
When the individual asks him-or herself the question:” If I perform, will I receive the
expected outcome? “If he or she thinks the answer is yes, or nearly yes, the expectancy
approaches 1. If the individual feels that being a high performer may not have a bearing on
the outcome, then a lower expectancy, somewhere b/n 1 and 0, would result. If he or she
thinks there may be no relationship b/n performance and outcome the expectancy is 0.

Valence: the value of a person assigns to the possible rewards and other work related
outcomes. If the rewards that are available are ones that interest us, valence will be high.
We also consider the value of possible negative outcomes such as the likely loss of leisure
time or the disruption of our family, that may offset the value of rewards in a given
situation. The available outcomes will have a motivating effect only when we attach a high
overall valence to the situation. In vroom’s expectancy model, outcomes refer to different
consequences that are contingent on performance, such as pay, promotion, recognition. An
outcome’s Valence depends on an individual’s needs and can be measured for research
purposes with scales ranging from a negative value to a positive value. For example, an
individual’s Valence toward more recognition can be assessed on a scale ranging from 2
(very undesirable) to 0 (neutral) to + 2 (very desirable)

13
 Expectancy: Valence:
E P Expectation Instrumentality: What value do I
What is the P O Perception place on the
probability that I What is the probability potential
can perform at that my good outcomes?
performance will lead
the required
to desired outcomes?
level if I try?

Outcomes
e.g., bonus,
Effort Performance praise, feelings of
accomplishment

Figure 4-5: Basic components of expectancy theory recognition

(Adapted from Higgins, James (1991)), The management challenging, P.441)

Expectancy theory posits that motivation (M), expectancy (E), instrumentality (I), and
valence (V) are related to one another in a multiplicative fashion: M=ExIxV. In other
words, motivation is determined by expectancy times instrumentality times valence. The
multiplier effect has important managerial implications. Mathematically speaking, a zero at
any location on the right side of the equation (that is for E, I or V) will result in zero
motivation. Managers are thus advised to act in ways that maximize all three components of
the motivation equation. Expectancy, instrumentality, not one can be left unattended.

Suppose, for example, that a manager is wondering whether the prospect of earning a
promotion will be motivational to a subordinate. A typical assumption is that people will be
motivated to work hard in the prospect of earning a promotion will be low if any one or
more of these three conditions apply. If expectancy is low, motivation will suffer. The
person might feel that he or she cannot achieve the performance level necessary to get
promoted. So, why try? Second. If instrumentality is low, motivation will suffer. The
person may place little value on receiving a promotion. It simply isn’t much of a reward.
So, once again, why try?

Expectancy theory makes managers aware of such issues. It can help them better understand
and respond to different points of view in the workplace. As shown in figure 4-6, this
includes working with each individual and trying to maximize their expectancies,
instrumentalities, and valences in ways that support organizational objectives. Stated a bit

14
differently, a manager should create a work environment within which task efforts serving
the organization’s needs are also viewed by subordinates as paths toward highly desirable
rewards.

To Maximize Expectancy

* Make the person feel competent - Select workers with ability

And capable of achieving the desired - Train workers to use ability
Performance level - Support work efforts
- clarify performance goals
- provide Information necessary to
Comple the task
- provide good materials and equipment
to work with

To maximize Instrumentality

Make the person confident in understanding - clarify psychological contracts

Which rewards and outcomes will follow - communicate performance outcome
Performance accomplishments possibilities
- Demonstrate what rewards are
contingent on performance

To maximize Valence
Make the person understand - Identify individual needs
The value of various possible - Adjust rewards to match these needs
Rewards and work outcomes

Figure 4-6: Managerial implications of expectancy theory: understanding and responding to

the individual’s point of view.
(Source: Schermerhorn, John (1996), Management & Organizations Behavior: Essentials.
P, 153)

EQUITY THEORY

Equity theory is a process theory of motivation known best through the work of
J. Stacy Adams. It is a theory that argues that we prefer situations of balance or
equity, which exists when we perceive the ratio of our inputs and outcomes to be
equal to the ratio of inputs and outcomes for a comparison other. The essence of
the theory is that perceived inequity is a motivating state-that is, when people
believe that they have been inequitably treated in comparison to others, they will

15
try to eliminate the discomfort and restore a sense of equity to the situation. This
sense of inequity, further, is based on the following equity comparison:

Individual’s rewards/Individual’s efforts

compared with Other’s rewards/other’s efforts

Equity comparison such as the above typically occurs whenever managers

allocate extrinsic rewards, especially monetary incentives or pay increases.
Perceived inequalities occur whenever people believe that the rewards received for
their work efforts are unfair, based on the rewards other people appear to be
getting. The comparison group might be co-workers, workers elsewhere in the
organization, and even people employed by the organizations. Adams predicts
that people will respond in one or more of the following ways to perceive inequity:
change their work units; try to change the rewards received; use different
comparison points; rationalize the inequity; leave the situation.

The research of Adams and others, largely accomplished in laboratory, lends

some support to his predictions. People who feel overpaid-that is, who perceive
positive inequity- have been found to increase the quantity or quality of their
work. Those who feel underpaid-that is, who perceive negative inequality- to
reduce their work efforts to compensate for the missing rewards; that is they are
less motivated to work hard in the future. The research is most conclusive in
respect to felt negative inequity. It obviously represents a condition that most
managers would want to avoid.

Equity theory reminds us that the way rewards are perceived by their recipients
will largely determine how they impact satisfaction and performance. Because
feelings of inequity are based on individual perceptions, it is not the reward’s
absolute value or what a manager thinks that counts. It is what the recipients
think that determines motivational outcomes. Rewards perceived as equitable
should have a positive result; those perceived as inequitable may create
dissatisfaction and reduced performance.

Thus, it is not enough for a manager simply to give rewards. The entire process,
including dealing with the way rewards are perceived by recipients, must be well
managed. Ultimately, it is the manager’s responsibility to ensure that any
negative consequences of the equity comparison are avoided, or at least
minimized, when rewards are allocated. Informed managers recognize that equity
comparisons are likely whenever especially visible rewards such as pay or
promotions are allocated. They anticipate felt negative inequalities, particularly
as co-workers may compare one another’s rewards and performance
accomplishments. Prepared managers carefully communicate the intended value
of the reward being given, an appraisal of the performance on which it ids based,
and appropriate comparison points.

16
Goal-Setting Theory

Task goals, in the form of clear and desirable performance targets, form the basis
of Edwin Locke’s goal-setting theory. The theory’s basic premise is that task goals
can be highly motivating-if they are properly set and if they are well-managed.
Goals can give direction to people in their work. Goals can clarity performance
expectation between a superior and subordinate, between co-workers, and
between levels of authority in an organization. Goals can establish a frame of
reference for task feedback. In these and related ways, Locke believes goal setting
can enhance individual work performance and job satisfaction.
Research by Locke and his associates indicates, however, that these benfits are
realized only when a manger works with subordinates to set the right goals in the
right ways. The key issues and principles in managing the goal-setting process
are described in the following manner:
 Set specific goals- They lead to higher performance than more generally
stated ones, such as “Do your best.”
 Set challenging goals- As long as they are viewed as realistic and
attainable, more difficult goals lead to higher performance than do easy
goals.
 Build goals acceptable and commitment- People work harder toward goals
that they accept and believe in; they tend to resist goals that seem forced
on them.
 Clarity goal priorities- Make sure that expectations are clear as to which
goals should be accomplished first, and why.
 Reward goal accomplishment- Don’t let positive accomplishments pass
unnoticed; reward people for doing what they set out to do.

Participation clearly plays an important role in the goal-setting process. This the
degree to which the person expected to do the work in involved in setting the
performance goals. Participation can be a great source of satisfaction for the
individuals involved and can also contribute to higher performance. Research
indicates that this is most likely to occur when the participation (1) allows for
increased understanding of specific and difficult goals, and (2) provides for
greater acceptance and commitment to them. Mangers should also be aware of
participation options. It mint not always be possible to allow others to select
exactly which goals need to be pursued. But it might be possible to allow them to
help determine how to best pursue the goals. In some setting, furthermore, the
constraints of time and other factors may not allow for participation. But,
research suggests that people will accept and commit to imposed goals if the
people assigning them are trusted, and if the recipients believe they will be
adequately supported in attempts to achieve them.
The concept of management by objectives (MBO) is a good illustration of a
participative approach to goal setting. As a process of joint goal setting by
supervisors and subordinates, MBO helps to unlock the motivational power of
goal-setting theory.

17
4.4.3 Reinforcement Theory of Motivation

The content and process theories use cognitive explanations of behavior. They are
concerned with explaining “why” people do things in terms of satisfying needs,
resolving felt inequities, and/or pursuing positive expectancies and task goals,
Reinforcement theory, by contrast, views human behavior as determined by its
environmental consequences. Instead of looking within the individual to explain
motivation and behavior, it focuses on external environment and the
consequences it holds for the individual.

The reinforcement approach to motivation is almost the antithesis of cognitive

theories in that it does not concern itself with the thought processes of
individuals as an explanation of behavior. The best-known approach to
reinforcement theory, sometimes also called operant conditioning theory or
behaviorism, has been pioneered by noted psychologist B.F. Skinner. According
to reinforcement theory, our behavior can be explained by consequences in the
environment and, therefore, it is not necessary to look for cognitive explanations.
Instead, the theory relies heavily on a concept called the law of effect, which
states that behaviors having pleasant or positive consequences are more likely to
be repeated and that behaviors having modification, or OB Mod for short, is a
term that describes the application of operant conditioning techniques to
influence human behavior in the work place. The four basic OB or reinforcement
strategies are:

 Positive reinforcement This increases the frequency of or strengthens

desirable behavior by making a pleasant consequence contingent upon its
occurrence. Example: A manager nodes to express approval to a
subordinate making a useful comment during a staff meeting.
 Negative reinforcement This increases the frequency of or strengthens
desirable behavior by making the avoidance of an unpleasant consequence
contingent upon its occurrence. Example: A manger who has been nagging
a worker every day about tardiness does not nag when the worker comes
to work on time one day.
 Punishment This decreases the frequency of or eliminates an undesirable
behavior by making an unpleasant consequence contingent upon its
occurrence. Example: A manger docks the pay of an employee who reports
late for work on day.
 Extinction this decreases the frequency of or eliminates an undesirable
behavior by making the removal or a pleasant consequence contingent
upon its occurrence. Example: A manager observes that a disruptive
employee is receiving social approval from co-workers. The manger
counsels co-workers to stop giving this approval.

18
Strategies for motivating organization members
Managers have various strategies at their disposal for motivating organization members. Each
strategy is aimed at satisfying subordinates’ needs through appropriate organizational behavior. In
fact, the combination of these strategies is most effective in the organization setting. These
managerial motivation strategies are as follows:

1. Managerial communication
2. Theory X- Theory Y
3. Job design
4. Behavior modification
5. Likert’s management systems
6. Monetary and non-monetary incentives

Managerial communication perhaps the most basic motivation strategy for managers is simply
to communicate well with organization members. Effective manager-subordinate communication
can satisfy such basic human needs as recognition, a sense of belonging, and security. For example,
such a simple managerial action as attempting to become better acquainted with subordinates can
contribute substantially to the satisfaction of each of these three needs. To take another example, a
message praising a subordinate for a job well done can help satisfy the subordinate’s recognition
and security needs.

As a general rule, managers should strive to communicate often with other organization members,
not only because communication is the primary means of conducting organizational activities, but
also because it is a basic tool for satisfying the human needs of organization members.

Theory X- Theory Z Another motivation strategy involves managers’ assumptions abut human
nature. Douglas McGregor identified two sets of assumptions: Theory X involves negative
assumptions about people that McGregor believes managers often use as the basis for dealing with
their subordinates (for example, the average person has an inherent dislike of work and will avoid it
whenever he or she can). Theory Z represents positive assumptions about people that McGregor
believes managers should strive to use (for Example, People will exercise self- direction and self-
control in meeting their objectives).

The basic rationale for using Theory Y rather than Theory X in most situations is that managerial
activities that reflect Theory Y assumptions generally are more successful in satisfying the human
needs of most organization members than are managerial activities that reflect theory X
assumptions. Therefore, activities based on Theory Y assumptions are more apt to motivate
organization members than are activities based on Theory X assumptions.

Job Design A third strategy managers can use to motivate members involves designing jobs that
organization members perform. There are two basic routes to Job design: fitting people to jobs, and
fitting jobs to people. Fitting people to jobs is based on the assumption that people will gradually
adjust and adapt to any work situation. Thus, employee attitudes toward the job are ignored, and
jobs are designed to produce the maximum economic and technological efficiency. This approach
uses the principal of scientific management and work simplification. In contrast, the second route

19
involves fitting jobs to people. It assumes that people are under utilized at work and that they desire
more challenge and responsibility. Those, employee attitudes play an important part in determining
how jobs should be designed. Techniques such as job enlargement, job rotation, job enrichment,
and job characteristics are used when designing jobs according to this second alternative. These
techniques will be discussed in chapter seven.

Behavior Modification A fourth strategy that managers can use to motivate organization
members is based on a concept known as behavior modification. As stated by B.F. Skinner, the
Harvard psychological considered by many to be the “father of behavioral psychology,” behavior
modification focuses on encouraging appropriate behavior by controlling the consequences of that
behavior. According to the law of effect, behavior that is rewarded tends to be repeated, while that
which is punished tends to be eliminated.

Although behavior modification programs typically involve the administration of both rewards
and punishment, it is rewards that are generally emphasized because they are more effective than
punishments in influencing behavior.

Likert’s Management Systems Another strategy that managers can use to motivate organization
members is based on the work of Rensis Likert, a noted management scholar. After studying
several types and sizes of organizations, Likert concluded that management styles in organizations
can be categorized in to the following systems:
 System 1- this style of management is characterized by a lack of confidence or trust in
subordinates. Subordinates do not feel free to discuss their jobs with their jobs with
superiors, and are motivated by fear, threats, punishments, and occasional rewards.
Information flow in the organization is directly primarily downward; upward
communication is viewed with great suspicion. The bulk of all decision making is done at
the top of the organization.
 System 2- This style of management is characterized by a condescending master-to-servant-
style confidence and trust in subordinates. Subordinates do not feel very free to discuss their
jobs with superiors, and are motivated by rewards and actual or potential punishments.
Information flows mostly downward; upward communication may or may not be viewed
with suspicion. Although policies are made primarily at the top of the organization,
decisions within a prescribed framework are made at lower levels.
 System 3- This style of management is characterized by substantial, though not complete,
confidence in subordinates. Subordinates feel fairly free to discuss their jobs with superiors,
and are motivated by rewards, occasional punishments, and some involvement. Information
is often accepted, though at times it may be viewed with suspicion. Although broad policies
and general decisions are made at the top of the organization, more specific decisions are
made at lower levels.
 System 4- This style of management is characterized by complete trust and confidence in
subordinates. Subordinates feel completely free to discuss their jobs with superiors, and are
motivated by such factors as economic rewards based on compensation system developed
through employee participation and involvement in goal setting. Information flows upward,
downward, and horizontally. Upward communication is generally accepted- but even where

20
 it is not, employees’ questions are answered candidly. Decisions making is spread widely
throughout the organization and is well coordinated.

Likert has suggested that as management style moves from system 1 to system 4, the human needs
of individuals within the organization tend to be more effectively satisfied over the long term Thus,
an organization that moves toward system 4 tends to become more productive over the long term.

Monetary Incentives and Non-Monetary Incentives A number of firms make a wide range of
money-based compensation programs available to their employees as a form of motivation. A firm
can also keep its employees committed and motivated by non-monetary means. For instance, some
companies have a policy of promoting from within. They go through an elaborate process of
advertising jobs internally before going outside to fill vacancies. Another non-monetary incentive
emphasizes quality, on the theory that most workers are unhappy when they know their work goes
to producing a shoddy product.

Managerial Implications of Motivation Theories

For the manager in a public organizations or agency, this review of motivation

theories stimulates a practical concern. Drawing upon the previous discussion on
motivation theories, we will attempt to present managerial implications that are
important to motivate individuals in work settings.

Establish and use Goals

The literature on expectancy and goal setting as well as that from behavior
modification underscores the importance of having hard and specific goals. We
agree with the assumptions of the cognitive approach that people have reasons
for what they do. Moreover, what people choose as a goal is something they value
and believe in. If mangers can provide a linkage between the goals employees find
valuable and the goals the organization wants to accomplish they can tap a very
important motivational force. The goals chosen must be attainable. They should
stretch the employee but not be so high as to be unattainable. Perceptions by the
employee that the outcomes they want to achieve are beyond their abilities can
result in a reduction of effort. Goals must also be clearly stated and measurable.
Employees need feedback on their progress toward these goals and they generally
should be involved in and have “ownership” of the goal formation process.

Link Reward to performance

The motivational theories assume that in order to change behavior it is important

to make rewards contingent upon the behavior you seek to modify. All effort
possible should be made by the manger to tie tangible rewards (pay and
promotion) and symbolic rewards (praise and plaques) to employee behaviors that
manager wants to reinforce. Whether the satisfaction that comes from such
reinforcement causes performance (an intrinsically satisfying work motivates

21
high performance) or performance causes satisfaction (high performers receive
extrinsic rewards and feel good as a result), it remains true that satisfied
employees stay with their employment. If the satisfaction performance linkage is
strong, the most productive employees will also be those who remain to make
careers in the organization.

Manage Equity Issues

Recall, the basic premise of equity theory is that employees desire that their
effort, abilities, and performance be judged fairly relative to others. Equity theory
also assumes that employees evaluate their work situation much like they
evaluate other economic transactions in the market place in terms of inputs,
outcomes, comparative analysis and, and action. The fact that this analysis is
subjective makes it less relevant from a motivational perspective and leads to the
prescription that managers take into consideration individual differences. As
much as possible, differences in ability, experience, effort, and other inputs
should explain differences in pay, promotion, and responsibility.

Provide for Job Enrichment

Human resource professionals have observed that public personnel systems and
job classification procedures typically limit job design when compared to the
private sector. In a sense this is true! However, public mangers should not lose
site of the ability they possess to change the ways in which tasks are performed
and to enhance the inherent motivational factors in the nature of work itself. The
principles of job enrichment should include removing some control while
retaining accountability. In addition, to the extent possible a person should be
given a complete natural unit of work.

22
Questions for Review

1. Define motivation and explain why managers must understand it.

2. Compare and contrast content, process and reinforcement theories of
motivation.
3. Critically examine Maslow’s need priority model. How far up the
hierarchical ladder do most people progress?
4. Discuss the differences and similarities of each theory under content
theories.
5. Is there a relationship between Maslow’s higher order needs and Herzberg’s
motivation theories? Discuss how an organization can utilize the
McClelland’s theory of motivation in personnel relations and placement
programs.
6. Explain Vroom’s expectancy theory of motivation.
7. Describe the acquired needs theory of motivation.
8. What is the main theme of the equity theory of motivation?
9. Assess the role of goal setting in motivation.
10. Is there a single best way to motivate the employees? Justify your
reason.
11. Explain the four main types of reinforcement.

23
References

Bartol, Karthryn and Martin, David (1991), Management, McGraw-Hill,Inc., New York

Certo, Samuel (2000), Modern Management: Diversity, Quality, Ethics and the Global
environment, 8th ed., Prentice Hall, USA.

Griffin, Ricky (1990), Management, 3 rd ed., Houghton Mifflin Company, Boston.

Hellriegel D. and Jhon W. Slocum (1992), Management: Annoted instructor's ed., Addison-
Wesley, Publishing Company, New York.

Higgins, James (1991), The management challenge: Annoted instructor's edition, McMillan
Publishing Company, New York.

Holt, David H., (1993) Management: Principles and practices, 3rd ed., Prentice Hall, Englewood
Cliffs.

Stoner, James and Freeman, R. Edward (1989), Management, 4th ed., Prentice Hall, Englewood
Cliffs
Vasu, et al, (1998), Organizational Behavior and Public Management, 3rd ed., Marcel Dekker,
Inc., New York.

24