Learning Outcomes

1. Explain what motivation is and why managers need to be concerned about it.
2. Differentiate and explain the differences between content theories, process theories and
reinforcement theories of motivation.
3. Analyse why and how managers can use money as a major motivation tool in the
workplace.
4. Make recommendations to the HR manager regarding the design of jobs in motivating
employees in a business.
5. Analyse why and how managers can use money as a major motivational tool in the
workplace.

INTRODUCTION
An organisation will only be effective if its members are motivated to
perform at a high level.
Workforce motivation is a key influence in work performance.

In order for managers to improve the performance of their employees

and therefore the productivity of the organisation they should
motivate their employees.

Motivation is intrinsic. It comes from within. It is an inner desire to

satisfy an unsatisfied need.
Smit et al (2016:400) defines motivation as the willingness of an
employee to achieve organisational goals. It is what drive people to
act/behave in certain ways.

Understanding what makes people act in a particular way in one

organisation is one of the core functions of a manager.
Different factors motivate different people.

The manager needs to understand what must be done to motivate

employees to work towards the goals of the organization. If managers
have knowledge of what motivates workers, they can influence the
worker’s work performance.
THE MOTIVATION PROCESS
The motivation process comprises an inner state of mind that channels
(or moves) an employee’s behaviour and energy towards the
attainment of organisational goals. The motivation process consists
of the following interdependent elements:
The elements of the motivation process are;

Need Motive Behaviour Consequences Satisfaction/

dissatisfaction

FEEDBACK

1. Need - An employee that has an unfulfilled need. For example, an

employee who has an unfulfilled need for higher status in the
organisation where s/he works

2. Motive – An employee has a specific desire to be promoted. For

example the desire/motive to be promoted to a senior position.

3. Behaviour – This need of the employee will motivate him to

engage in particular behaviour. S/he may work overtime, and may
enrolls for a BBA in Marketing Management with the IMM-GSM.

4. Consequences – The consequence of the behaviour may either be

positive or negative. S/he may or may not be promoted.

5. Satisfaction/dissatisfaction - The consequences of her behaviour

could lead to satisfaction or dissatisfaction. The employee will be
satisfied if s/he receives a promotion, but dissatisfied if not.

6. Feedback – if dissatisfaction is the outcome, the need remains

unsatisfied, and the motivation process will start all over again.
Satisfaction, on the other hand is usually short-lived because
 people have many needs and as soon as one need is satisfied
another need will surface.

If managers understand what motivates the behaviour of their

employees, they can influence the employees’ work performance. It
is important to bear in mind that motivation is not the only factor that
influence work performance. The variables that determines
performance are motivation (goal or skill), ability (training,
knowledge and skills) and the opportunity to perform

Motivation x Ability x Opportunity = Performance

The above equation indicates that an employee must posses a high

level of motivation plus the appropriate training, knowledge, and
skills that are necessary to perform effectively in a given work
situation. In addition to motivation and ability, the employee should
have the opportunity to perform. This means that the work
environment must be supportive. The employee must have adequate
resources, such as tools, equipment, materials and supplies to be able
to do the work. Conducive working conditions, helpful co-workers,
supportive policies and procedures, sufficient information to make job
related decisions, and adequate time to do a good job are factors that
influence worker performance. Work performance is also determined
 by a person’s values and attitudes, perceptions, learning, emotional
intelligence and so on.

CLASSIFICATION OF MOTIVATION THEORIES

The different motivation theories can assist managers in motivating
employees because it gives the manager a good indication of how
people might behave in different situations. Motivation theories are
classified in terms of content, process, and reinforcement theories.

Motivation Theories

Content Theories Motivation Theories

Process Theories

Focus
Focus Focus
 Indentifying needs that  The process of goal setting Behaviour as a function of its
employees want to satisfy consequences
 Evaluation of satisfaction
 Identifying the factors that
influence the behaviour of after goals have been
employees Examples
achieved
Examples  Reinforcement Theory
 Maslow’s Hierarchy of needs Examples
Theory
 Adam’s Equity Theory
 Herzberg’s Two factor Theory
 Alderfer’s ERG Theory  Vroom’s Expectancy Theory
 McClelland’s Acquired Needs
Theory
CONTENT THEORIES
These theories investigates what needs people want to satisfy and
attempt to identify the factors that influence individual behaviour.
Content theories include the following
1. Maslow’s Hierarchy of needs theory
2. Herzberg’s Two Factor theory
3. Aldefer’s ERG Theory
4. McClelland’s Acquired need theory

MASLOW’S HIERARCHY OF NEEDS

Abraham Maslow’s theory is based on two important assumptions as
follows:
1. People always want more and their needs depend on what they
already have. A need that has already been satisfied is not a
motivator – only unsatisified needs can influence behaviour.
2. Peoples’ needs are arranged in order of importance. When one
need is partially satisfied, the next one will come forward to be
satisfied as depicted below.
 Self-
 Actualization
 Esteem needs
 Social needs
 Security needs
 Physiological needs
1. Physiological Needs – These represent the basic level in the
hierarchy and comprise needs such salary and basic working
conditions. As long as these needs are unsatisfied, employees will
strive to satisfy them. However, once these needs are satisfied,
they no longer influence behaviour. Most employees belong to
trade unions, which negotiate for higher wages and basic working
conditions to ensure that these basic needs of their members are
satisified.

2. Security Needs – Once a person’s basic needs have been satisfied,

his or her security needs come to play. Security in the workplace,
job security, medical aid and pension schemes satisfy these needs..

Self
Actualisation
needs
(achieving full potential)

Esteem needs
(Success, recognition/status, appreciation of
achievement, independence)

Social Needs

(Work groups & Teams)

3. Social Needs / Affiliation – Social needs are man’s need for love,
friendship, acceptance and understanding of other people and
groups. People join clubs and social organizations to be accepted
by others. By forming work groups and encouraging sufficient
interaction among employees, managers can make sure their
subordinates’ social needs are met.

4. Esteem – the need for success, recognition and appreciation are

examples of esteem needs. Managers can reward high achievement
with recognition and appreciation.

5. Self actualization – At the pinnacle of Maslow’s hierarchy of need

is need for self-actualization. This represents the apex of human
needs. These are the most difficult to satisfy. Managers should
create an environment in which self actualization is possible
through providing employees with skills development, the chance
to be creative and opportunity to have complete control over their
jobs.

Maslow’s Hierarchy of Needs Theory in Perspective

Although Maslow’s hierarchy of needs provides an adequate
explanation of human needs in organisational settings, contemporary
managers realise that they cannot confine their employees to a simple
five step hierarchy. The following are some of the criticism levelled
against the theory
1. During certain periods of their lives, people re-order the levels of
the hierarchy in their personal lives. For example, when a
company retrenches a director unexpectedly, his or her lower level
needs resurface
2. It is difficult to determine the level of needs at which an individual
is motivated at a certain point.
3. Managers work with many employees - in large organisations it is
difficult, if not impossible to determine the level of each
employee’s unsatisfied needs.
4. Individuals differ in the degree to which they are motivated to
pursue money, recognition or other need satisifiers from one
person to the next
5. Opposing theorists maintain that it is possible to address needs at
the same time.
Management Applications of Maslow’s Hierachy of Needs theory
A number of difficulties arise in the practical application of Maslow’s
hierarchy of needs theory. However, despite its criticism it is
important to note that.......
1. The model has great intuitive appeal and it is easy to understand.
2. The model highlights important categories of needs and
3. It differentiates between higher-order and lower-order needs.
4. Most significantly, it stresses the need for personal growth and self
actualisation the work places.

Management’s Application
1. Managers can apply Maslow’s theory by providing physiological
and security needs of their employees.
2. They can include employees in groups and teams to satisfy the
social needs and they can create a work environment where the
workers can satisfy their higher order needs.

ALDEFER’S ERG THEORY

Clayton Aldefer refined Maslow’s theory by dividing Maslos five
need into three broader categories of needs, namely existence needs,
relatedness needs and growth needs.
1. Existence needs correspond to Maslow’s physiological and
physical safety needs
2. Relatedness needs focus on how people relate to others and
correspond to Maslow’s social needs
3. Growth needs relate to Maslow’s esteem and self-actualisation
needs

Alderfer’s theory differs from Maslow because according to

Alderfer, more than one level of needs can motivate at the same
time, for example a desire for friendship (relatedness) ad the need
for promotion (growth) can simultaneously influence the
motivation of an individual. The theory also has a frustration-
regression aspect which means that if needs remain unsatisfied, an
individual may become frustrated and revert to satisfiying lower
level needs. The ERG theory is more flexible than the rigid
hierarchy of needs theory which states that one level of needs must
be satisfied before the next level will come to the fore.
 Management Implications of the ERG Theory
1. The contribution of this theory is the assertion that people strive
to satisfy various needs at the same time.
2. Furthermore according to this theory, if people’s higher order
needs are not met, they may regress to attempting to satisfy
lower order needs

HERZBERG’S TWO – FACTOR THEORY

Fredrieck Herzberg studied the relationship between job satisfaction
and productivity. He found out that factors leading to job satisfaction
were different from those leading to job dissatisfaction hence the two-
factor model. He termed the sources of work satisfaction motivator
factors. These include
1. Work itself
2. Achievement
3. Recognition
4. Responsibility
5. Opportunities for achievement and growth
These factors are present in the job content (what people actually do
in their work)and are associated with positive feelings people have
about their work.

Hygiene (maintenance) factors

Herzeberg termed the sources of work dissatisfaction Hygiene
factors. If these factors are present you are not dissatisfied but if they
are absent you are dissatisfied. These factors are in the job context
and include
1. Salary
2. Interpersonal relationships (supervisor and subordinates)
3. Organisation policy and administration
4. Working conditions
5. Status and job security

If the organisation adequately provides for hygiene factors, there will

be no dissatisfaction. However, if they are not in place it will cause
dissatisifcation . Herzberg found that hygiene factors are associated
with individuals’s negative feelings about their work and these factors
do not contribute to employee motivation. It is important to note that
Herzberg’s theory classifies salary as a hygience factor which do not
motivate people. According to this theory people work to earn
salaries, and they will be extrememly dissatisfied if they do not
receive their salaries. However if the organisation links a monetary
reward to performance, such as a merit bonus or promotion, it
provides recognition of the employee’s performance and is therefore a
motivator.

Herzberg’s Theory in Perspective

1. Herzberg’s Theory differs from Maslow in that he assumes that
most employees have already satisfied their social and economic
 needs (Lower order Needs) to such an extent that only Higher order
needs motivate them
2. The factor theory’s contribution to understanding of motivation in
the workplace is the focus on the work itself in the motivation of
employees, which has led to an interest in job enrichment.
3. Herzberg explained the limited influence on motivation of more
money, fringe benefits and better working conditions (hygiene
factors) on motivation, and he stressed the strong influence of
factors such as achievement, recognition, responsibility and
opportunities for advancement and growth (motivators)
4. Contrary to Herzberg’s earlier findings, recent studies have proved
that
a. money and recognition do not appear to be primary sources
of motivation but rather factors associated with intrinsic
motivation
b. relevance of recognition as a motivator has declined. This
observation has been attributed to the fact that organisations
have increasingly become flatter with fewer opportunities for
promotion.

Herzberg two-factor theory in perspective

1. Extend Maslow’s ideas and making them more applicable in the
workplace
2. Focusing on job centered factors has led to an interest in job
enrichment.
 3. Offering an explanation on the limited influence of money on
motivation
4. If managers only concentrate on hygiene factors motivation will
not occur.

Management application
1. Managers should eliminate dissatisfaction by ensuring that
salaries/wages, working conditions, company policies and other job
context factors are reasonable and appropriate.
2. To enhance employee motivation managers can provide
opportunities for growth, achievement ad responsibility – that is,
factors that will motivate employees
3. Job restructuring( job enrichment) contribute to work motivation

McCLELLAND’S ACQUIRED NEEDS MODEL

Is also known as the Achievement Motivation Theory
This theory is premised on the understanding that all people have
needs for achievement, affiliation or power, but that one need
predominates in each person. This theory postulates that people
acquire certain types of needs during a lifetime of interaction with the
environment. The model proposes that when a need is strong, it will
motivate the person to engage in specific behaviours to satisify that
need. McClellad distinguished three needs as follows;
1. The need for achievement (N Ach) is the need to excel, to achieve
in relation to set standards, to strive to succeed. Achievers prefer
jobs that offer personal responsibility, feedback and moderate
risks.
2. The need for affiliation (N Aff) is the desire for friendly and close
interpersonal relationships
3. The need for power (N Pow) is the need to make others behave in
a way that they would not otherwise have behaved.

Acquired needs model in perspective

People can acquire the need for achievement. They can be trained to
stimulate their needs for achievement. The objective of training is to
encourage them to think in terms of accomplishments, winning, and
success and to prefer situations in which they have personal
responsibility and regular feedback and where they take moderate
risks.
.

Management applications
McClelland’s research shows that people are not static and they can
improve their own abilities. Organizations use the acquired needs
model to improve worker performance by placing employees in jobs
according to their predominant needs.
1. Employees with a high need for achievement feel motiovated by
performing non-routine, challenging tasks with clear and attainable
 goals. Feedback on their performance should be fast and frequent.
Managers should continually increase their responsibility for doing
new tasks. High achievers tend to be valuable employees and are
good at managing self-managed teams in large organisations.
People with high need for achievement are not necessarily good
managers, because achievers are interested in how well they do
personally and they tend to be motivated to influence others.
2. Employees witha high need for affiliation with others will be
motivated if they work in teams ad if they receive lots of praise and
recognition from their managers. They derive satisfaction from the
people they work with rather than from the task itself.
3. Employees with high need for power prefer work where they can
direct the actions of others. They also prefer to work in
competitive and status oriented situations. The best manags are
high in need for their power and low in their need for affiliation.
Research indicates that a high power need may be a requirement
for managerial effectiveness

PROCESS THEORIES
The focus on how motivation actually occurs.
The process of individual goal setting
Evaluation of satisfaction after goals have been achieved
The best know theory are equity and expectancy theory
ADAM’S EQUITY / INEQUITY THEORY ON MOTIVATION
The individual must perceive a relationship between
(1) the reward he receives and
(2) his performance.
The individual perceives the relationship based on a comparison of
the input-output ratio between himself and someone he regards as an
equal.

The individual input includes

effort,
experience,
qualifications and
other personal attributes.
Outputs: include praise , recognition, salary, promotion etc
The comparable individual (referent) who could be a co-worker or
someone outside the organization doing the same job
NB: The comparison leads to three conclusions:
1. the worker is under rewarded,
2. over rewarded or
3. equitably rewarded.

If individuals perceive to be under – rewarded , they will try to

restore the equity by
I. reducing own inputs by lowering performance
II. increasing their reward by asking for a raise
III. distorting the ratios by rationalizing
to try to find reasons to explain your behaviour, decisions,
IV. trying to get other individuals to change inputs or rewards
V. leaving the situation’
VI. finding a new comparable someone
If individuals perceive their rewards to be greater than inputs,
I. they restore the equity through increasing their inputs by higher
performance,
II. reduce reward by taking pay cut,
III. or try to reduce the other person’s input.
The Equity Theory Model
I. Individual Inputs Individual Outputs
II. Compare inputs / outputs ratio
III. With an equal individual
IV. Perceive equity Perceive inequity
V. No change of behavior Under-rewarded Over-rewarded
VI. Change behavior Change behavior
VII. Perceive equity Perceive equity

Management applications
I. Workers are motivated by reward if it is fair and equitable
II. Organizations should reward people’s contributions
III. Remuneration issues should be transparent

THE EXPECTANCE THEORY OF MOTIVATION BY

VICTOR VROOM
The theory argues that people will act according to
(1) their perceptions that their work efforts will lead to certain
performance and outcomes and (2) how much they value the
outcomes

An individual’s work motivation is determined by the following

elements;
I. Expectancy (efforts – performance relationship)
 Expectancy is the belief that a particular level of effort will be
followed by a particular level of performance.
E.g. expectancy will be high if a sales person is sure that if he
works overtime
(effort), he will be able to sells more units (performance).
High expectations generally create higher motivation than low
expectations.

II. Instrumentality (performance- reward relationship)

It refers to the degree to which an individual believes that
a certain level of performance will lead to the attainment
of a desired outcome.
Instrumentality will be high if the sales person believes
that if he sells more units (performance) he will receive a
bonus (rewards).

III. Valence (reward-personal goal relationship)

Valence is the value or importance that an individual attaches to
various work outcomes. Each outcome has an associated valence or
value.
For motivation to be high, employees must value the outcomes
(bonus) they will receive for their performance (selling more units).
Management applications
Few individuals perceive strong relationship between performance &
rewards in their job. Organizations reward employees according to
seniority, effort, job difficulty and skill level rather than according to
performance.
a. Employee’s performance should be linked to rewards they get.
b. Employees are motivated to achieve outcomes that they desire
c. Employees should know what level of effort the company expects
for them to receive desired reward.

REINFORCEMENT THEORIES
They focus on behaviour as a function of consequences. One of the
theories is reinforcement theory

The reinforcement theory of motivation
Its premise is that behavior is a function of its consequences.
It suggests behavior followed by positive consequences will occur
more frequently than behavior followed by negative consequences

In order to encourage a particular behavior organizations can reward

individuals as they move towards the desired behaviour (positive
reinforcement)

Another way of reinforcing desired behavior is through avoidance.

An organization can reinforce behavior by the avoidance of
undesirable consequences (employees sticks to deadlines to avoid
reminder)

Reinforcement can be negative and there are two types;

1-punishment-managers use punishment to discourage undesirable
behavior
2-extinction -Managers can use extinction to weaken behavior,
especially behavior that they previously rewarded.

Various strategies for scheduling reinforcement;

I. Continuous reinforcement
II. The fixed interval
III. The fixed ratio schedule
IV. The variable ratio schedule.

Management application of reinforcement theory

Professor luthans identified five steps that managers should follow to
enhance motivation in the work place by using reinforcement theory.

I. Identify critical, observable, performance-related behaviors that

are most important to successful job performance
II. Analyze the causes and consequences of these behaviors to help
managers create condition that produce the critical behaviour
 identified, and to determine whether the behaviours produce the
desired results.
III. Use positive and negative reinforcement to increase the
frequency of these critical behaviours.
IV. Evaluate the extent to which the reinforcement has actually
changed worker’s behaviour by comparing behaviour before the
reinforcement to behaviour after the reinforcement

Money as motivator
Virtually all theories of motivation accept that money influences
employees’ performance to a certain extent. According to Maslow’s
theory, lower-order needs can be satisfied by money. Herzberg’s
hygiene factors can also be satisfied by money.
Designing jobs that motivate
The term job design refers to the way tasks are combined to form
complete jobs.

A Job enlargement (horizontal work loading)

I. It entails the addition of a variety of tasks to an existing job. It
increases the variety of tasks but does not alter the challenge
that the work offers

II. Job enrichment –vertical work loading - It occurs when the

person responsible for the actual job now performs the planning
and control function previously done by the superior. It implies
the addition of measurable goals, decision making
responsibility, and performance of vertically extended jobs,
control and feedback to the worker activity

Two factor theory and job enrichment

Herzberg argued that job enrichment is required for intrinsic
motivation, and that it is a continuous management process.
According to Herzberg;
I. Jobs should have sufficient challenge to utilize the full ability of
the employees
II. Employee who demonstrates increasing levels of ability should
be given more responsibility.
III. If a job cannot be devised to use an employee’s full abilities, the
task should be automated, or replace the employees with one
with lower level of skill. If the person cannot be fully utilized
then there is motivation problem.

Job characteristic model

It suggests that certain core job dimensions create critical
psychological states which lead to certain beneficial personal and
work outcomes.
The model recognizes that these relationships are strongest among
employees who have a higher need for personal growth and
development.
The model recognizes a limitation of job enrichment, not all workers
want to apply job enrichment in their lives and not all jobs are suitable
for job enrichment.

The five core dimension in the job characteristic model

Skills variety-the greater the variety that and employee can use his
skills for, the greater the challenge

Task identity-the extent to which the worker performs the job in its
entirety
Task significance- the extent to which the task influences lives of
other people. It’s important for people to know that their work is
meaningful

Autonomy - the control a worker has over the task .MBO is used to
reinforce this dimension

Feedback - the extent to which the worker receives feedback of his

performance
The core dimensions create the following three psychological states;

Meaningfulness of work - the first three contribute to

meaningfulness of task. A task is as such if worker experiences as
being important, valuable and worthwhile.

Responsibility for outcome of work - autonomous jobs make

workers feel personally responsible and accountable for the work they
perform.

Knowledge of the actual results of their work activities - feedback

gives employees knowledge of the results of their work

Management applications of the job characteristic model

The model can guide managers to redesign jobs with the to enhance
their motivation by;
I. Combining tasks, enabling the worker to perform the entire job.
II. Forming natural units that allow workers to be identified with the
work they have done.
III. Establishing a client relationship-allowing providers of service to
meet the recipient
IV. Loading jobs vertically , allowing greater responsibility and
control over work
V. Providing workers with feedback on the results of their work and
keeping feedback channels open
Write an essay on the limited influence of money as a motivator. Use
the various theories of motivation to substantiate your arguments.

Jobs can be designed to motivate the workers who perform

them. Use some practical examples to describe the techniques
used to create jobs that motivate.
Think about the ideal job that you would like to obtain upon
completion of your studies. Describe this job, the kind of
manager to whom you would like to report and the kind of
organisation you would be working for. Answer the following
questions:

a) What would be your levels of expectancy and instrumentality

on this job?
b) Which outcomes would have high valence for you on this
job?
c) What steps should your manager take to influence your
levels of expectancy, instrumentality and valence?
d) What goals would you strive to achieve on this job and why?
e) What role would your manager play in determining your
goals?
f) What behaviours would your manager positively reinforce on
this job and why?
g) What positive reinforcements would your manager use?
h) You have been promoted. Your manager instructs you to
redesign your current job in order to motivate your replacement.
3. Describe the job characteristics that you would consider in
redesigning a job.
4. Why, in relation to motivation, are the opinions of employees
more important than those of management?
5. Research has shown that employees tend to be more
satisfied and motivated working for smaller companies. Would
you agree with this finding? Justify your reasoning by using a
company of your choice to explain your thoughts.