Chapter 5 Motivation In the workplace , motivation may be

INTRODUCTION more specifically defined as the set of

Job performance is a given internal and external forces that cause a
requirement in any organization. It is worker or employee to choose a course of
possible, however, if the following conditions action and engage in a certain behavior.
are met;
1. The capacity to perform 2.The opportunity KEY ELEMENTS OF MOTIVATION
to perform 3.The willingness to perform Motivation consists of the following elements
The capacity to perform relates to the 1. intensity
degree to which the employee possesses 2. direction
skills, abilities , knowledge, and experiences 3. persistence
relevant to his job. If high performance is
expected, the employee must be fully trained Intensity refers to the level of effort
and physically capable of doing his job. provided by the employee in the attempt to
The opportunity to perform will defend achieve the goal assigned to him. In simple
on the work environment provided to term intensity refers to how hard a person
employee. One who works on an office that tries to do work.
is hot, humid and noisy, cannot be expected The person's effort could be a full
to perform well. The opportunity to perform is commitment to excellence or doing just
also diminished by lack of equipment, lack of enough to get by. For example, if a company
funds, and insufficient authority. sets a minimum output of 10 units sold per
The willingness to perform relates to person per month, the employee whose
the degree in which an employee desires intensity level of motivation is low will just
and is willing to exert effort to achieve the sell 10 units per month and those with high
goals assigned to him. levels of motivation would sell more.
Direction relates to what an individual
What is Motivation chooses to do when he is confronted with a
People behave differently and one of number of possible choices. When a field
the reasons is that they are motivated salesman, for instance, decided to visit a
differently. Some are motivated by economic friend instead of a prospect he is moving
reasons, while some are motivated away from the direction his company wants
otherwise. But even those who are him to take. Persistence is a dimension of
motivated by money will differ in terms of motivation which measures how long a
how much they want. person can maintain effort to achieve the
As motivation is one of the requisites of organization's goals A person who scores
performance, a basic understanding of what low in persistence gives up prematurely. An
motivation is and how it facilities the example relates to what action a
achievement of goals would benefit both salesperson will do when confronted by a
managers and individual employees. prospect who thinks slowly and do not make
Motivation may be defined as the hasty decisions. Persistence could be the
process of activating behavior, sustaining it, answer, but the salesperson could decide
and directing it toward a particular goal. otherwise.
Motivation moves people to act and In any case, the three elements
accomplish. complement each other, If the intensity of
motivation is insufficient, or the effort is not autonomy, and achievement, and extern=
properly directed or persistent enough, esteem factors such as status, recognition,
excellent performance is not just possible. and attention.
5. Self-actualization- refers to the drive to
become what o is capable of becoming,
THEORIES OF MOTIVATION which includes growth, achieving- one's
There are various theories related to potential, and self-fulfillment. If Maslow's
motivation. They may be classified as either theory really gives clue to motivating people
(1) content, or (2) process (3) theories. managers and supervisors would do well in
Content theories are those that focus on their jobs if the- concentrate on satisfying an
analyzing the wants and needs of an individual's next level of need, i.e., if the-
individual. The four better known content current need level is already satisfied. For
theories are the following: instance, if an employee already feels
1. Hierarchy of Needs Theory of Abraham satisfied with his physiological needs, then
Maslow 2. ERG Theory of Clayton Alderfer he can b- expected to perform better if his
3. Acquired Needs Theory of David L. safety needs are taken care of.
McClelland 4. Two-factor Theory of
Frederick Herzberg The ERG Theory
Process theories explain how people act in The ERG theory is a need hierarchy
response to the wants and needs that they theory of motivation that was developed by
have. Classified under process theories are Clayton Alderfer. He believed that in
the following: motivating people, we are confronted by
1. Expectancy Theory of Victor Vroom three sets of needs: existence (E),
2. Equity Theory of J. Stacey Adams relatedness (R), and growth (G).
3. Goal Setting Theory of Edwin A. Locke These sets of needs may be briefly
described as follows:
The Hierarchy of Needs Theory 1. Existence this refers to needs satisfied by
Abraham Maslow forwarded the idea such factors as
that human beings possess a hierarchy of 2. Food, air, water, pay, and working
five needs (physiological, safety, social, conditions; Relatedness- this refers to the
esteem, and Self-actualization) such that as needs satisfied by meaningful social and
each need is substantially satisfied, the next interpersonal relationships; and
need becomes dominant. 3. Growth - this refers to the needs satisfied
A brief description of the needs is provided by an individual making creative or
as follows: productive contributions. Alderfer, like
1. Physiological needs which include hunger, Maslow, also believed that individuals
thirst, she sex, and other bodily needs. progress up the hierarchy of needs as a
2 Safety needs which include security and result of the satisfaction of lower order
protection from physical and emotional harm. needs. But he maintained, however, that if a
roc higher order need cannot be satisfied, a
3 Social needs which include affection, lower order need becomes dominant as a
belongingness- acceptance, and friendship. motivating factor. For example, if growth
4. Esteem needs - which include internal cannot be attained, the individual will
esteem factors such as self-respect, regress to relatedness as a motivator.
Alderfer also thought that, unlike Maslow, in which people work. The factors
more than one need may be activated at the associated with job context are called
same time. hygiene factors which include the following:
1. organizational policies
2. quality of supervision
Acquired Needs Theory 3 working conditions
Acquired needs theory was developed 4. base wage or salary
as a result of a research made by David 5. relationship with peers
McClelland and his associates. They found 6. relationship with subordinates 7 status
out that managers are motivated by three 8. security
fundamental needs which may be briefly
described as follows:
1. Need for achievement this refers to the According to the two-factor theory,
desire to do something better or more improving any of the hygiene factors will not
efficiently, to solve problems, or to master make people satisfied with their work; it will
complex tasks; only prevent them from being dissatisfied.
2. Need for affiliation which refers to the The job content relates more to what
desire to establish and maintain friendly and people actually do in there work. Those that
warm relations with others; and are related to job content are called
3. Need for power - which refers to the motivator factor and they consist of the
desire to control others, to influence their following:
behavior, or to be responsible for others. 1. achievement 2. recognition
McClelland believed that the foregoing 3. work itself
needs are acquired over time as a result of 4. responsibility 5. advancement 6. growth
life experiences. According to the two-factor theory,
His research findings consist of the when the foregoing factors are not present,
following: there is low job satisfaction among workers
1. People who have high achievement needs and there is lack of motivation to perform.
have the d to advance and to overcome
challenging situations as those faced by
entrepreneurs in introducing innovatative Expectancy Theory
new business; One of the process theories refer to the
2. An affiliation motivated person prefers to expectancy theory that was developed by
work with friend Victor Vroom. This theory sees people as
3. The need for power drives successful choosing a course of action according to
managers. what they anticipate will give them the
greatest rewards. vroom elaborated by
explaining that motivation is a product of the
The Two-factor Theory following factors:
Frederick Herzberg developed his two-factor 1. valence how much one wants a reward;
theory that identified job context as a source 2.expectancy one's estimate of the
of job dissatisfaction and job content as the probability that effort will result in successful
source of job satisfaction. The job context or performance; and
work setting relates more to the environment 3.instrumentality- one's estimate that
performance will result in receiving the rewards; and
reward. 4. they might choose someone else for
The three factors are useful in deriving comparison purposes. When employees feel
motivation. The formula is as follows: under rewarded, they will seek to reduce
Valence x Expectancy x Instrumentality = their feelings of inequity through any of the
Motivation following:
Expectancy theory predicts that 1. they might lower the quality or quantity of
motivation will be high if all three factors are their productivity
rated high. Conversely, the lower the rate for 2. they could inflate the perceived value of
an all of the three factors, the lower the the rewards received; 3. they could find
motivation becomes. someone else to compare themselves;
4. they could bargain for more rewards; and
Equity Theory 5. they might quit.
Equity theory is the second process theory
presented in this chapter. It may be defined Goal Setting Theory
as a theory that individuals compare job The third process theory presented in
inputs and outcomes with those of others this chapter is the goal setting theory. It may
and then respond eliminate inequities. be defined as the theory that specific and
Equity theory assumes that employees are difficult goals, with feedback lead to higher
motivated by a desire to be equitably treated performance. Goal setting theory is based
at work. Equity exists when employees on the premise that behavior is regulated by
perceive that the ratios of their inputs (or values and goals. A goal is the specific target
efforts) to their outputs (or rewards are that an individual is trying to achieve. It was
equivalent to the ratios of other employees. Edwin A. Locke and his associates who
Inequity exists when these ratios are not developed a comprehensive framework
equivalent. Inequity leads to the experience linking goals to performance. Their findings
of tension, and tension motivates a person about goals include the following:
to act in a manner to resolve the inequity. 1. Specific goals lead to a higher
The person, however, will be confronted with performance than generalized goals. For
any of the two types of inequity: example, a specific goal like "increase sales
1. over rewarded; or by 10%" is more effective than a generalized
2. under rewarded. goal like "increase sales".
2. Performance generally increases in direct
proportion to goal difficulty. Goals that are
Employees who feel over rewarded will difficult to achieve is regarded as a
think there is and imbalance in their challenge to the ability of the person. This
relationship with their employer. They will pushes him or her to perform. Exceptions, of
seek to restore the balance through any of course, are goals that are too difficult, and
the following: the person gets frustrated rather than
1. they might work harder; inspired.
2 they might discount the value of the 3. For goals to improve performance, they
rewards; must be accepted by the workers. It is logical
3. they could try to convince other that when goals are accepted, by the
employees to ask for more workers For goals to improve performance,
they must be accept that they should who is responsible for it enjoys doing it. This
achieve them. Acceptance and commitment management activity is called job design,
to a happen when workers participate in the when it is undertaken; Some useful benefits
setting of goals. The he worker will feel that will accrue to the organization. Job design
they are "part owner of the goals, and they may be defined as the way the elements in a
will have a sense of achieving them. job are organized.
4. Goals are more effective when they are Three concepts are important in
used to evaluate performance. This is true designing jobs. They consist of the following:
especially if performance is used to 1. job enrichment
determine rewards. 2. job characteristics model 3. job crafting
5. Goals should be linked to feedback. When
workers receive feedback, they will know
whether or not they are moving towards the Job Enrichment
direction of high performance. Such This term refers to the practice of
knowledge is important in maintaining the building motivating factor like responsibility,
right motivation to work achievement and recognition into job
content. Job enrichment provides the worker
with a more exciting job and it increases his
MOTIVATIONAL METHODS AND job satisfaction and motivation. An enriched
PROGRAMS job has any or all of the following
Is normal for employers to want their characteristics
employees to do their best in the workplace. 1. Direct feedback - which means employees
For employers, the ideal situation is tor receive immediate evaluation of their work.
employees to perform excellent work, and 2. Client relationships - which means an
thus produce maximum output. This is employee is given a chance to serve an
wishful thinking, however, because external or internal client.
employees need a certain degree of 3 New learning - which means that the
motivation to perform very well. To keep employee acquires new knowledge while
employee sufficiently motivated, some doing his work.
means of motivation should be designed and 4. Control over method - which means that
implemented. the employee has some control over which
Four motivational methods and programs method to choose to accomplish a task.
are considered in this chapter. They are as 5. Control over scheduling - which means
follows: the employee has the ability to schedule his
1. motivation through job design; work.
2. organizational behavior modification; 6. Unique experience - which, means the job
3. motivation through recognition and pride; has unique qualities or features, like the
and 4. motivation through financials opportunity to see the world.
incentives. 7. Direct communication authority - which
means the job provides the employee the
opportunity to communicate directly with
Motivation Through Job Design people who use their output.
One way of motivating employees is to 8 Control over resources which means the
make their job challenging so that the worker employee has some control over resources
such as money, material, or people. a job scoring high on task significance would
9. Personal accountability which means the be a close-in bodyguard who protects the
employee is responsible for his or her result. president of a nation. A job scoring low on
He accepts credits for doing a good job, and this dimension would be a dishwasher in a
blame for a poor job. restaurant.
4. Autonomy- the degree which the job
gives the employee substantial freedom,
Job Characteristics Model independence, and discretion in scheduling
This term refers to the method of job the work and determining the procedures
design that focuses on the task and used in carrying it out. An example of a job
interpersonal demands of a job. This method scoring high on autonomy is a bus inspector
emphasizes the interaction between the who schedules his or her own work and
individual and the specific attributes of the decides on the most effective means of
job. checking the work of drivers and conductors
The job characteristics theory assigned to him or her. A job scoring low on
maintains that there are five core job autonomy would be a bank teller who is
characteristics of special importance to job required to follow a standardized procedure
design. When the score job characteristics with each bank client. Feedback -the degree
are high, the job is said to be enriched. to which a job provides direct information
The five core job characteristics are defined about performance. An example of a job with
as follows: high
1. Skill variety - the degrees to which 5.Feedback- is an electrician who
there are many perform. An example of a job installs electric wirings at residences and
scoring high on skill variety would prefer to then tests them for the homeowner to see if
cabinets, wooden floors, tables, chairs, toys, they operate properly. A job scoring low on
upholstery, and the like he the master feedback would be a university professor
carpenter who makes and install doors, door who receives performance feedback many
jambs, be the mast installs bricks eight months after handling a class.
hours a day. An example of a job scoring low
on skill variety is the worker who An example
2. Task identity - the degree to which Job Crafting
one worker is able to do a complete job, This refers to the physical and mental
from beginning to end, with the tangible and changes workers make in task or
possible outcome. An example of a job relationship aspect of their jobs.
scoring high on identity would be guitar The common types of job crafting are:
maker who designs the product, select the 1. changing the number and type of job
materials builds the object and finishes it to tasks;
be a fine musical instrument. A job scoring 2. changing the interaction with others on the
low on the task identity dimension would be job; and 3. changing one's view of the job.
a person whose job Is solely to play the
electric bass in a live band performance.
3. Task significance- the degree to Job Crafting
which the job has a substantial impact on the This refers to the physical and mental
lives or work of other people. An example of changes workers make in task or
relationship aspect of their jobs. and it is a strong motivator. To make it an
The common types of job crafting are: effective
1. changing the number and type of job motivator, the following steps are necessary.
tasks; 1. Identify a meritorious behavior (for
2. changing the interaction with others on the example, the development of a scheme that
job; and 3. changing one's view of the job. reduces the cost of providing service to
customers); and
2. Recognize the behavior with an oral,
Organizational Behavlor Modification written, or material reward. For example, the
The second method of motivation is equivalent of 10% of the cost savings will be
called organizational behavior modification given to the worker who developed the
(OB Mod). It is actually the application o scheme every time the savings is realized.
reinforcement theory in motivating people at For a better understanding and
work. Reinforcement theory may be briefly implementation of reward and recognition
defined as the contention programs, the following points must be
that behavior is determined by its considered:
consequences. Simply stated, a person 1. Feedback is an essential part of
tends to repeat behavior that is recognition;
accompanied by. favorable consequences 2 Praise is one of the most powerful forms of
and tends not to repeat behavior that is recognition;
accompanied by unfavorable 3. Keward and recognition programs should
consequences. be limited to organizational goals;
The typical OB Mod program consists of a 4. ldentification of the type of rewards and
five-step problem-solving model. These are recognition that the workers will value; and 5.
as follows: It is important to evaluate the effectiveness
1. Identifying critical behaviors that make a of the reward and recognition program.
significant impact on the employee's job Pride is also a motivator, but one that is
performance; intrinsic. Workers who achieve outstanding
2 Developing baseline data which is performance experience the emotion of
obtained by determining the number of times pride. The feeling satisfies the need for
the identified behavior is occurring under self-esteem and self-fulfillment. This
present conditions; provides managers with a clue on what
3 identifying behavioral consequences of concrete actions could be done to motivate
performance; workers.
4. Developing and implementing an
intervention strategy to strengthen desirable
performance behaviors and weaken Motivation through Financial Incentives
undesirable behaviors; and Financial incentives are powerful tools
5. Evaluating performance improvement. of motivation. They are monetary rewards
paid to employees because of the output
they produce, skills, knowledge, and
Motivation through Recognition and competencies or a combination of these
Pride factors. Financial incentives take the form of
Recognition is a natural human need any or a combination of the following:
1. time rates reward is related to the level of output; and
2. payment by results 3 There are likely to be cost advantages
3. performance and profit related pay 4. since wages are directly linked to production
skill/competency based pay and less supervision 5 required.
5. cafeteria or flexible benefits system The disadvantages of payment by
Each of the foregoing financial results are as follows:
incentives offers unique advantages 1. Outputs in certain jobs cannot be easily
although there are also some disadvantages measured;
when are used to motivate employees. 2. Safety standards may be compromised.
For instance, tne high rate of accidents
involving bus drivers who are paid
Time Rates commissions is sufficient proof of the
This type of monetary reward use the disadvantage or payment by results; and
number of hours work as a means of 3. Workers may view payment by results as
determining rewards. It may be classified as a device to obtain greater effort from them
hourly rate or weekly wage, or a monthly without commensurate rewards.
salary.
The advantages of time rates are as follows:
1. It is open to inspection and equitable Performance Related Pay
because employees doing the same job will This scheme considers results or
be on the same grade level. output plus actual behavior in job. Most often,
2. It encourages the retention of human rewards consist of a lump sum, or a bonus
resources by stability and this is because of as a percentage of basic salary, with quality
the gradual increases in rewards within the of performance determining magnitude of
given grades. the percentage increase, or alternatively
3. It is relatively easy to administer and accelerated movement up a pay scale. The
allows labor cost to be predicted. bonus is a reward given to employees or
4. It does not emphasize quantity of output to recent performance rather than historical
the detriment of quality. performance.
The main disadvantage of time rates is The advantages of performance
that it does not motivate related pay are as follows:
employees to become more productive. 1. It increases employee beliefs
(instrumentality) that reward will follow high
Payment by Results performance;
This scheme links pay to the quantity of 2. Those that perform better are rewarded
the individual's output. An example is the more; and
commission paid to a salesman for selling 3 It is comparatively objective and verifiable.
the Company's products. The disadvantages are as follows:
The advantages of payment by results 1. cost rises along with the rewards;
are the following: 2. the system is complex;
1. The employee is motivated to put in extra 3. employees with declining energy may
effort because by doing so, he or she will experience a decrease in total pay;
receive additional income; 4. the union may resist the incentive idea;
2. There is fairness because the level of 5.there is delay in the payment of incentives;
6.the system is rigid; and worker income may vary from year to year.
7. it is difficult to motivate higher As a result, some workers may
performance across a broad range of prefer the stability of a fixed wage or salary.
employees.

Skill Based Pay

Profit Related Pay Also known as competency based or
This is an organization wide scheme knowledge based pay, this is a pay plan that
where pay is linked to Company profits. sets pay levels on the basis of how many
Profit related pay takes the form of direct skills employees have or how many jobs
cash Outlay, or allocation of stock options. they can do:
Stock option is a financial incentive that The advantages of the skill based pay
gives employees the right to purchase a are the following:
certain number of company shares at a 1. It provides strong motivation for
specified price, generally the market price of employees to develop their work-related
the stock on the day the option is granted. skills;
The following are the advantages of profit 2. t reinforces an employee's sense of
related pay: self-esteem; and
1. Employees identify more closely with 3. that It provides can fill the in organization
the success of the organization; with a highly flexible workforce that can fill in
2 There is a breaking down or removal when someone is absent.
of the communication barrier between The disadvantages are as follows:
management and employees; 1. Since most employees will voluntarily
3. Cooperation and working together learn higher el jobs, the average hourly pay
for mutual benefit is encouraged; rate will be greater than normal
4. Awareness of the link between 2. A substantial investment in employee
performance and organizational profitability training must DE made especially in the time
leads to a greater awareness of spent coaching by supervision and peers;
costs and their impact on performance; 3. Not all employees like skill based pay
5. When profits fall, the decline in pay because it places pressure on them to move
is a preferable up the skill ladder; and
alternative to laying off employees; and 4. Some employees will qualify themselves
6. Group pressure could raise the for skill areas that they will unlikely use,
performance levels of poor causing the organization to pay them higher
performers. rates than they deserve.
The disadvantages of profit related pay are
as follows:
1. Profits are not directly related to an Cafeteria or Flexible Benefit System
employee's effort on the job, and this is a This is a benefit plan that allows each
negative factor on motivation; employee to put together a benefit package
2. Employees must wait for their individually tailored to his or her own needs
reward, and the delay diminishes its impact; and situation. Examples of benefits that may
and be included .in the plan are health and life
3. Since profits are unpredictable, total insurance, company car, additional holiday
entitlement, membership to social clubs, people act in response to the wants and
modification of working hours, special needs that they have. The better known
pension arrangement, mortgage loan content theories are: hierarchy of needs
subsidies, and others theory, ERG theory, acquired needs theory,
The advantages of this plan are as and two-factor theory.
follows: The better known process theories are:
1. It enables employees to choose options expectancy theory, equity theory, and goal
that best fit their own needs. Old workers, for setting theory. Workers may be motivated
instance, may choose health and life through any of the following methods and
insurance, while the younger ones may programs: job design, organizational
choose membership to social clubs. behavior modification recognition and pride,
2. Deciding among the various options and financial incentives. modification,
makes employees more aware of the
benefits, giving them a real sense of the
value of the benefits their employers
provide.
3. Flexible benefit plans can lower
compensation costs because employers no
longer have to pay for unwanted benefits.
4. Employers and employees can save on
taxes.
The disadvantages of the plan are as
follows:
1. It creates an administrative burden.
2 It can lead to the increased insurance
premiums.

Highlight Summary
SUMMARY
Employee performance is a very
important concern for people running
organizations. One of the requirements of
performance motivation.
Motivation may be defined as the
process of activating behavior, sustaining it,
and directing it toward a particular goal.
The key elements of motivation are
intensity, direction, and The persistence. The
various theories of motivation may be
categorized as either content or process
theories. Content theories are those that
focus on analyzing the wants and needs of
an individual. Process theories explain how